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<a href="https://www.apartments.com.au/developers/doma-group">DOMA Group</a> has unveiled plans for Newcastle Quay, a major waterfront precinct set to reshape Newcastle’s harbourfront and further cement the city’s evolution into one of Australia’s fastest-growing urban destinations.

Positioned on a prominent site within the Honeysuckle Precinct, Newcastle Quay will span both sides of Honeysuckle Drive, connecting directly to the Foreshore Promenade and sitting within walking distance of Newcastle Interchange.

The mixed-use precinct is planned to include around 1,000 apartments, more than 28,000 sqm of commercial office space, 6,000 sqm of retail, and a 180-room hotel anchored by a 500-seat conference and exhibition centre, a move expected to significantly lift Newcastle’s ability to attract major business and tourism events.
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<img alt="DOMA Group unveil Newcastle’s future with transformative Newcastle Quay Precinct" data-entity-type="file" data-entity-uuid="0642ca09-67cc-4920-8a7e-d18df9729b4e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/%3D.png?VersionId=CnDmZxQnOV5LN0ePu7jaFBXC9tPGTrWm" />

The proposal builds on DOMA’s growing Newcastle pipeline, where the developer has already delivered 866 apartments and more than 19,000 sqm of commercial and retail space since entering the market in 2013. A further $2 billion pipeline is also in the works across the city.

The masterplan and executive architecture are led by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, with building concepts developed alongside Stewart Architecture, Architecture AND and Curious Practice, and landscape design by <a href="https://www.apartments.com.au/landscape-architect/turf-design">Turf Design Studio</a>. More than 11,000 sqm of open space is planned, including a new waterfront park known as Honeysuckle Green, upgrades to Tree of Knowledge Park, and new pedestrian and cycling links throughout the precinct.

At the centre of the development will be the heritage-listed Wickham School of Arts, which DOMA plans to reposition as the civic and cultural heart of the precinct through restaurants, bars, events and public gathering spaces.

The broader vision is to create a genuine day-to-night precinct, blending residential, hospitality, retail, commercial and cultural uses in a way Newcastle has yet to experience at this scale.

DOMA Group Managing Director Jure Domazet said the aim was to create a precinct that becomes synonymous with Newcastle itself.

“Our vision is to create a precinct that not only delivers high-quality commercial, residential, and cultural spaces, but also defines Newcastle’s waterfront for generations to come,” Domazet said.

DOMA’s Chris Farrington said the project would fundamentally change how Newcastle is perceived nationally.

“Newcastle Quay is more than a waterfront precinct, it is a national announcement for this city,” Farrington said.

“A world-class Conference and Exhibition Centre will open Newcastle and the Hunter Region to a national and international audience for the first time, delivering something this city has long deserved.”

The project is expected to generate more than 4,000 full-time equivalent jobs and act as a major economic driver for the Hunter region through tourism, business events, hospitality and commercial investment.

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Minister for Planning and Public Spaces Paul Scully said the final parcel of harbourfront land will be a "true mixed-use precinct destination that includes housing, hospitality and entertainment, commercial spaces, retail, economic and social outcomes."

Joel Robinson

DOMA Group unveils 1,000-apartment Newcastle Quay precinct

ASX-listed developer Stockland is continuing to ramp up its return to the apartment market.

In late 2024, <a href="https://www.apartments.com.au/developers/stockland">Stockland</a> announced it would resume apartment development after a 13-year absence, launching with Stanton Place in Rosebery, a 144-apartment project now under construction.

Last week, the developer unveiled plans alongside the NSW Government for a <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-nsw-gov-unveils-plans-for-3-300-home-waterloo-south-renewal">3,300-home precinct in Waterloo</a>.

Now, Stockland has shifted its focus in St Leonards, lodging a State Significant Development Application (SSDA) to replace an approved 42-storey office tower with a 52-storey residential development comprising more than 500 apartments.

<img alt="Stockland" data-entity-type="file" data-entity-uuid="8979095e-9072-432b-a7da-58b180cf994d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.36%E2%80%AFPM.png?VersionId=_jbRXYOafCSHjwsz.yQCNIymMyCj8zkF" />

An existing 14-storey commercial office building would make way for a 264.5-metre tower designed by <a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a>. The project would deliver 538 apartments, including 30 affordable housing units, alongside retail and commercial uses at the podium and ground plane.

It will rise from&nbsp;<a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">601 Pacific Highway</a>, a prominent 2,844 sqm triangular site adjoining Mitchell Plaza and fronting Pacific Highway.

The development is being pursued under the Housing Delivery Authority pathway after Stockland’s proposal was declared State Significant Development earlier this year.

<img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="67f40f35-0458-47ab-80c0-a4e98a31838a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%201.png?VersionId=rxXe3njr.auuGDuiR0k42uI8Zr4K.gZA" />

The apartment mix includes 217 one-bedroom apartments, 191 two-bedroom apartments, 122 three-bedroom apartments, and eight four-bedroom residences. Six basement levels would accommodate 300 car spaces, bicycle parking, loading areas, and building services.

Bates Smart said the project has been shaped around a series of urban design principles intended to improve the pedestrian experience and respond to the evolving character of St Leonards.

“With a boundary length of almost 75m along Pacific Highway and 70m along Atchison Street to the north, complying simply with the LEP envelope and required setbacks would result in a very wide tower form on the skyline,” the architects noted in the Design Report.

“We propose breaking the tower form into two defined volumes rather than a singular form.”

The podium has similarly been articulated into separate forms to reduce perceived bulk and create a finer-grain response to Mitchell Plaza and Atchison Street. Retail tenancies would activate the lower levels, while commercial space is proposed across the podium floors.

<img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="90149990-0551-40d2-bd48-14b69a015d12" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%202.png?VersionId=MJC2KIIWFvU9FPGr3IVq09gkRN_gX3m8" />

The design also places a significant emphasis on communal amenity and environmental performance. Residents would have access to landscaped terraces, wellness areas, flexible workspaces, and rooftop communal facilities, while the all-electric building is targeting an average 7-star NatHERS rating. Bates Smart said the project incorporates passive design measures including natural ventilation, integrated shading, and lightweight façade systems.

Planning documents note the site is around 350 metres from St Leonards Station and 400 metres from the metro entrance, placing it within one of Sydney’s most connected emerging residential precincts.

The project arrives amid a wave of large-scale redevelopment proposals reshaping the St Leonards and Crows Nest skyline. Several nearby sites have recently been approved, lodged, or declared under the Housing Delivery Authority pathway as the precinct absorbs significant residential density uplift tied to transit-oriented development policies.

<img alt="Stockland" data-entity-type="file" data-entity-uuid="7805bd7c-dfd7-4b35-8e15-ec4a8bf8e61b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.26%E2%80%AFPM.png?VersionId=iY12K2m2bQ6EeDnshqfZC9rbLx_oEugP" />

Bates Smart’s report describes St Leonards as transitioning away from its historical commercial identity toward a more mixed-use urban environment.

“In recent years, the character of St Leonards has started to evolve, driven by new development trends along the Pacific Highway corridor,” the report said.

“These projects have increasingly focused on residential accommodation, marking a shift from its purely commercial roots.”

Sekisui House Australia is currently selling Waterstone down near Newlands Park, in a pocket being branded "St Leonards South." Hyecorp recently completed Audrey in the same pocket.

First look: Stockland plans 52-storey, 538-apartment St Leonards tower

ANZ believes the Reserve Bank is in no rush to move again.

Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.

That positioning, in ANZ’s view, makes a June rate hike unlikely.

The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.

The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.

As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.

Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.

Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.

The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.

Ultimately, most members leaned toward the inflation side of that equation.

Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.

That’s important.

While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.

ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.

That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.

However, where ANZ diverges from the RBA is on the outlook for activity.

The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.

ANZ is less convinced.

The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.

That divergence matters because it shifts the balance of risk.

If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.

It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.

The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.

On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.

For now, the Board is choosing to wait.

But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.

In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.

For borrowers, it reinforces the reality that relief is not imminent.

And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.

According to ANZ, it is a balance that is becoming increasingly difficult to maintain.

RBA to hold rates for "prolonged period" rather than hikes: ANZ

<a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.

The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.

<a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.

[smartcode_project:default project_id=135663 project_image_fid=360477]

The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.

Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.

VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.

“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.

[smartcode_project:default project_id=135663 project_image_fid=360505]

The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.

The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.

Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.

[smartcode_project:default project_id=135663 project_image_fid=360473]

BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.

The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.

<a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.

The first stage of Cumulus Grand Villas is targeting completion in 2026.

[smartcode_project_cta:default project_id=135663]

VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.

The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.

For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.

Waverley Council’s response has been to move early, and decisively.

Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.

<img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" />

At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.

That repositioning is built around four key ambitions.

The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.

The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.

Oxford Street Mall sits at the centre of that shift.

Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.

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The second ambition is to transform Bondi Junction into a world-class interchange.

Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.

The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.

The third ambition focuses on greening and open space.

One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.

The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.

The fourth ambition is perhaps the most important from a development perspective: growth that gives back.

Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.

New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.

The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.

Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.

It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.

Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.

Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.

The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.

This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.

Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.

That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.

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If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.

“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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Many people dream of building an impressive property portfolio in order to live off the generated cash flow later in life. But it’s not always that easy, and the outcomes are not always rosy – so here are seven quick tips to help the average investor climb the property ladder.
<ol>
<li>
Time is of the essence
The sooner you start to build your portfolio the sooner you will be investing in your own financial future. But the time has to be right for you personally, you have to be ready for the commitment and be in the right position financially.
</li>
<li>
Goal Setting
Those who set goals are already positioning themselves in the right direction and can focus on how to reach those goals. Ask yourself, when do you want to buy your first property? Or your second or third? Make your goals realistic and think clearly about how you plan to reach them.
</li>
<li>
Research
<a href="/expert-insights/investing/property-as-part-of-your-investment-portfolio-three-of-the-best-of-mark-bouris">Mark Bouris of Yellow Brick Road</a> says the best investors spend time attending auctions, monitoring sales trends and tracking suburb growth figures to gain an insight into how much they should expect to pay for their properties.
Also look for an area that has rental demand. By simply asking someone whether or not a particular suburb is good or not, means you have not done adequate research.
</li>
<li>
Take action
Rich Harvey of PropertyBuyer says to be successful in property investment, you not only need the knowledge, you need the courage to take action.
“Most people that go to seminars and read books do not do anything. They gain the theoretical knowledge, but very few use it themselves,” says Harvey.
</li>
<li>
Start on the right path
The first investment property will often be the most important purchase an investor will make, as poor property selection at the beginning can set you back.
“The property selection process will dictate whether the buyer will be able to grow their portfolio to a second, third, or fourth investment property,” says <a href="/expert-insights/investing/your-first-investment-property-will-set-up-the-rest-of-your-portfolio">Lauren Staley director of Infolio</a>.
Do you research and make sure you’re going to benefit from your first investment.
</li>
<li>
Diversify your portfolio 
Investors should diversify their portfolio by buying properties in a range of locations, different suburbs within a city or different stages. A portfolio should also comprise of investment across different price ranges. <a href="/expert-insights/investing/diversify-your-property-portfolio-to-minimise-risks-mark-armstrong">Mark Armstrong, director of iProperty Plan</a>, says this provides more flexibility when the time comes to sell and free up equity. Armstrong also suggests diversifying between apartments and houses.
</li>
<li>
Build a team of professionals 
No property investor knows everything so it’s important to get advice from the professionals. Bouris suggests consulting a solicitor or accountant about your tax position as a landlord, use an insurance broker to get the right insurances, and spend some time finding the right property management company.
Harvey says a critical person on your team is a licensed buyer's agent, who can help you develop a strategy for your situation.
"Buyer's agents can quickly shortlist the top suburbs for growth or yield using sophisticated research tools. They can uncover off-market deals, new listings and hot properties via their established networks. To understand a local property market can take the average investor months, but using a buyer's agent can take days," says Harvey.
</li>
</ol>
Building a property portfolio isn’t for the average investor; you need to be a super investor willing to put in the hard yards. The first step is to have the courage to take action, do your research and build your own professional team.
{rsform 49}
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How to: Build a property portfolio in seven easy steps

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When it comes to purchasing an off the plan apartment, one thing is constant - the ‘first in best dressed’ rule applies.
The key is to watch out for marketing campaigns for new developments, in order to stay ahead of the pack.
However there is no one size fits all strategy to promote new options, with each developer reaching out to potential buyers in different ways.
Developers generally start advertising their development a couple of weeks prior to the official launch to generate some buyer interest, and some will offer a VIP night.
“Rather than starting to advertise when the property is ready to go on the market, it will be a couple of weeks in the lead up to it so potential buyers have an option to look at it if they’re really keen,” says Melbourne Real Estate sales director Georgina Mellick.
“Some people just want to go to the open, but some people want the option to look in a bit earlier before it goes to market.
“It’s [VIP nights] just a bit of building the momentum for any of the people wanting to have a look in before.”
Accessing a property for sale earlier means having a greater chance of securing a better unit and potentially getting a discount, as most developers need to sell a certain pre-sale amount before the bank will grant them funding.
Off the plan apartments generally only require a deposit up front and the balance of the purchase price is paid upon settlement, typically 12 to 24 months down the track.
It’s important to keep in mind lenders will only give conditional approval to finance an off the plan purchase, subject to future valuation. When the unit is complete, the lender will have the apartment valued. If it comes in lower than the purchase price, the lender will finance a lesser percentage of the purchase price.
That means, if a buyer snaps up an apartment when the market is on its way up, the property is likely to gain some value before settlement date but the purchase price remains the same.
However, if an apartment is bought and the market drops, buyers may be short of cash at the end if the valuation comes in lower at settlement.
The Western Australia Department of Commerce says when buying a new apartment it’s important to check for provisions in the contract such as the completion date, whether buyers are entitled to resell the property before the purchase is completed and if they have the right to a pre-settlement inspection.
The department recommends visiting any other projects the developer is involved in, to find out if the projects are on schedule and if the quality of the work is good.
It is also important to get a copy of the plan and get the plans and specifications checked by an independent architect or building consultant and for the buyer to choose their own licensed valuer to value the property.
“Most disputes arise from a buyer not being happy with the end product,” says <a href="/expert-insights/buying/eight-potential-pitfalls-to-watch-out-for-when-you-buy-off-the-plan">Holding Redlich lawyer Carolyn Chudleigh</a>.
“The best way to avoid this is to be aware of exactly what all of the finishes should be,” says Chudleigh.
“All of this can be negotiated before exchange of contracts and should be included specifically in the contract if you want to be able to enforce performance against the vendor.
“If a contract is skinny on detail, there may be little room for complaints at the end of the day.”
The rule of thumb when buying off the plan is: first in first served – interested buyers should register early and attend VIP nights if they’re offered. Secondly, the contract should always be looked over by a solicitor before any signing occurs.
 
{rsform 49}
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How to: Purchase an off the plan apartment

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Planning how to rent out an off the plan apartment is similar, if not the same, to other forms of property investment strategy, however some developers may offer a rental guarantee on the new purchase.
Developers generally offer a rental guarantee for the first year or two, however many property professionals warn against buying into a development that offers a rental guarantee.
iProperty Plan director Mark Armstrong says by accepting a guaranteed rent level, investors are insulated from market forces.
“As newer properties come on to the market and tenants have a wider choice of places to live, the market rent for a property could fall,” says Armstrong.
Market analyst <a href="/guides">Catherine Cashmore</a> says the rental guarantee is always factored into the sale price of the apartment.
Cashmore says rental guarantees can be between 5% to 7%. If an investment has a gross return of 6% and the developer guarantees $300 a week rent, the purchase price would be $260,000.
But if the market rent is in fact $250 a week, the property is really worth $218,000, resulting in investors paying 19.2% over the market value.
“Once the guarantee expires, the unit’s yield will revert back to market forces,” says Cashmore.
Armstrong says once the guarantee expires, investors will need to have sufficient cashflow to hold the property during periods when the property is not tenanted.
Property 1 real estate agent Garth Rothwell says rental guarantees are good for overcoming fear of loss due to a vacancy period but in reality, all rents are guaranteed.
“I guarantee there will be people willing to rent a unit, it just comes down to how much rent they are willing to pay.
“Guarantees that are offered by the developer and are above market value are bound to fail, as proven in the past, as they are unsustainable over the medium to long term.
“Rent guarantees based on market value for a period of one to three years can be beneficial for investors to overcome the fear factor and help the investor with cash flow in the initial years of the purchase,” says Rothwell.
“Ultimately it comes down to how the rent guarantee is funded.”
Off the plan apartments can be advertised for rent prior to settlement but Rothwell says the investor will require the developer’s permission to advertise early, as the developer will have to authorise access to conduct inspections.
“If the unit is leased prior to settlement, the developer is entitled to the rent collected prior to the settlement date.
“If a guarantee is in place, the developer will already have this process in place,” says Rothwell.
For investors wanting to rent out their new apartment, Rothwell advises to price the unit at market value, not emotional value.
“Investors should be prepared to trade off $10 to $15 per week in rent to get a better tenant sooner, or alternatively a tenant with a small pet may pay more.
“The investor needs to identify the type of tenant they wish to attract, familiarise themselves with relevant facts regarding pets, body corporate rules and on site management,” says Rothwell.
Rothwell advises that a pre-purchase/settlement inspection is organised from a licensed building inspector and that a detailed initial inspection report is completed.
“Complete all guarantees for stoves, ovens, dishwashers and air conditioners and ensure a landlord’s insurance policy is in place to cover loss of rent due to malicious damage and a basic contents policy to cover any dispute about building or contents,” says Rothwell.
As with any property investment, research is the key to ensure the numbers add up and that all the correct measures are taken to safeguard investors and their property.
{rsform 49}
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How to: Rent out an off the plan apartment

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Self-managed superannuation funds are gaining popularity as more people seek control over the investments they hold in the compulsory retirement savings system.
At the end of December, 1,034,497 people had an SMSF, up from 983,982 at the same time a year earlier, the Australian Taxation Office reports.
These funds held a total of $568 billion in investments, of which more than $21 billion was invested in direct residential property. Almost $70 billion was invested in direct commercial property, ATO figures show. The value of the SMSF sector represents close to 30% of all funds in superannuation showing the depth of the desire people have to control their own investments and their belief they can do better than the professionals.
Property is appealing to SMSFs partly because it is a long-term investment. You can’t withdraw savings from superannuation until retirement so it makes sense to hold long-term assets there. 
People have had success investing in their own homes and believe they can bring that success to their SMSF.  However when PIAA interviews property investors about their knowledge of the market place over 90% comment that they know a lot about property but they don’t know how to move forward with the selection of a property for performance to their goals and time frames. In SMSF it is particularly important to invest in property that has long term performance support and has strong exit appeal to support its re sale as mandatory SMSF draw downs require.
Investment property can deliver attractive income levels when compared with assets such as term deposits, bonds and some Australian equities. On top of that there’s the prospect of capital gains.   
There are significant tax advantages to holding property within superannuation. Rental income is taxed at 15% and capital gains is taxed at only 10% after 12 months while the fund is in what’s known as accumulation phase, when the members are making contributions to its balance.
After the members have retired and start drawing a pension from the fund, any earnings and capital gains are tax free.  This can save tens of thousands of dollars in capital gains tax compared to holding a property in your own name.
Taxation rates on income to superannuation at 15% are also lower than all marginal taxation rates.  This means it can cost you less to earn the funds to invest in property in an SMSF than from your post tax savings account. 
Property held through superannuation qualifies for the same tax deductions as property held outside of a fund.
Residential property investments can also be used to protect against inflation, which is a significant risk to retirement savings as it erodes the purchasing power of money over time.
The Reserve Bank of Australia aims to keep inflation, measured by the Consumer Price Index (CPI), at between 2% and 3% a year over the medium to long term.
A 3% inflation rate means that every dollar worth of goods or services today will cost $1.03 in a year’s time. The effect compounds so in 10 years’ time, one dollar’s worth of goods today will cost $1.34. 
A well thought out investment strategy should have a plan for combatting the effect of inflation.  
Residential property can offset inflation as capital gains should, at a minimum, keep pace with the inflation rate. Rental income should also rise in line with CPI.  Residential property is more effective at combatting inflation than money in the bank, and is generally considered lower risk than shares by financial planners.
In reality, the capital gains made on residential property in most parts of Australia have surpassed the inflation rate over the long term.
Research from Corelogic RP Data shows that across Australia’s eight major capital cities, home values increased by a cumulative 38% from the beginning of 2009 to the start of 2015. Each market rose over that period with Melbourne property increasing in value by 51.8% and Darwin homes gaining 24%. Sydney’s market was the strongest performer with prices rising by 56.9%.
A longer term analysis by CBRE, presented in its most recent Global Living report, found property values in Australia gained 221% over the 30 years to the end of 2014.  This result was second only to the UK of their surveyed countries.
CBRE attributes the strong result to Australia’s economic resilience, low interest rates and comparatively stable political landscape.  These are key indices of a strong property market and indicate strong capital growth drivers.
One such driver, population growth, has been stellar. Sydney’s population has increased by 15% over the past decade and is expected to grow by a further 25% between now and 2029.  This is growth rate is amongst the highest in the Western world and higher than many Asian and African countries.  Significantly this increase is driven by our immigration policy rather than births, 457 visa recipients are often highly paid and very motivated to enter the property market.
Housing supply has failed to keep pace with this rising demand. CBRE says Sydney’s property supply is “restricted by land availability through geographical limitations, zoning, planning restrictions and suitable infrastructure”.
Housing Industry Association research confirms that over the past decade demand for housing has outstripped supply all around the country.  Identifying imbalances between supply and demand is one of the five key capital growth drivers to support due diligence.
Access the market
Investors with a large enough balance in their SMSF can buy residential property outright. Alternatively, SMSFs can borrow to invest using special lending facilities, known as limited recourse borrowing arrangements.
Borrowing to buy residential property can magnify the returns on the investment.  If your SMSF invests 33% of the value of the property and you borrow the balance then you have increased your returns three fold.
Say you have $250,000 to invest in property through your SMSF. If the property increases in value by 8% in the first year, the capital gain would be $20,000. By borrowing an additional $250,000 to buy one or two properties worth $500,000, you could double your capital gain to $40,000, assuming all properties increased in value at the same rate.  If the property portfolio was leveraged at 66% then your return on investment would be 24%. This is higher than most commercial funds over recent years.
With current LVRs for SMSF borrowing at 70 to 80% and very low interest rates many properties can be held as cash flow neutral, with depreciation benefits creating a small loss to be offset against other income or carried forward.
It’s important to note that should property values fall, any capital losses would be similarly magnified by borrowing. Rental property is not a risk-free investment and buying investment property through an SMSF will not suit every investor.
For more information on self-managed super funds (SMFS) and property investment, download Forrester Cohen's <a href="/news">U</a><a href="/news">ltimate guide to property investment, Part One, Property and SMSF here</a>.
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Tax advantage factor in super property investment: Forrester Cohen

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With low deposit property loans available from some lenders, it’s unsurprising that many first timers, particularly those without equity from a property behind them, are looking to get onto the ladder as quickly as possible.
With Lenders Mortgage Insurance generally payable on LVRs (Loan to Value Ratio) higher than 80%, it’s worth considering how this affects you longer term.
Remember, it’s not just the deposit you need to stump up for – it’s all your other ongoing costs; building and pest inspection fees, stamp duty and conveyancing fees. Your deposit should be considered as separate from these costs.
You may also want to consider building in a “buffer” to your deposit, so that if the market does move, you aren’t left in a position where you have more debt than the property is valued at. Putting the bare minimum amount of funds into the home loan isn’t necessarily a good idea.
How much the bank will lend you, on the other hand, is a different question entirely. There are a number of serviceability calculators online, however you also need to determine what counts as prudent.
<h3>What to know about LMI</h3>
Some consider Lenders Mortgage Insurance, or LMI, a “necessary evil” to get into the property market. This insurance covers the lender, not the buyer, in case you default on your loan. Those with less than a 20% deposit are considered at higher risk of defaulting on the loan, and therefore are generally required to pay LMI.
Usually, LMI is a one off payment by purchasers borrowing more than 80% of the purchase price of a property.
However, while some consider it to be yet another cost they are required to pay, it can actually be a valuable tool that can help you achieve your goals sooner.
“Consider the comment I often hear from property investors: “Why would you want to incur an extra cost?” As a result, most try to avoid paying mortgage insurance, which they view as an impost by the lender,” explains Albertus Waldron, finance strategist and partner at Chan &amp; Naylor.
“What some investors fail to recognise is that in some instances it can be a very valuable tool that gives them more leverage and enables them to grow their asset base faster.”
This is especially the case in a market that is moving faster than you are saving.
Waldron explains that “because the frequency of defaults can vary depending on the lender, it is also worth noting that the amount charged can vary significantly from lender to lender, even given the same loan-to-value ratio, so it can pay to shop around”.
<h3>For those with pre-existing equity</h3>
If you are a home owner purchasing your first investment property, you may find that your home has increased enough in value to be able to refinance your home loan and use the funds to purchase your investment, while keeping your home. Discuss this option with your lender to see if this would suit your personal circumstances.
Essentially, you’re using your equity in your existing property to put a deposit onto your investment purchase. For those who have owned their home for a while in a growing market, while paying down the interest and the principal, it make sense that a substantial amount of equity may be available.
Remember that some lenders require you to keep a buffer of around 20% of the equity in your home, so it’s unlikely you can use all of the equity in your property.
Using the equity may leave you cross-collateralising. Essentially, this is where the lender has a title over your home and the investment property, and depending on the equity you have in your own home you may not have to put a physical cent down anywhere. If you default on your investment property, you do run the risk of losing your home in this situation.
Lenders also have the capacity to begin dictating terms that you are not comfortable with if your situation changes.
One benefit of cross-collateralisation is that you will not necessarily have to pay LMI.
The other option is to get separate loans for each property using your equity. This fully separates your properties, may require no physical money be paid and allows you to only access the equity you need to cover the deposit and costs as a top-up loan or line of credit.
What you end up with in terms of deposits is a range of scenarios, each suited to different buyers. If you are unlikely to save anymore, then buy with what you can afford, however if you can quickly save more funds then it makes sense to go in with as much capital as possible.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2754/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>

Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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leldred-s3gDjqZCKM

How much deposit should I look to save?

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<img src="https://www.urban.com.au/images/marketing/first-time-investor-series/Brought-To-You-By-RAMS.png">
Self-managing a property is an option for those with spare time and a number of key skills. But for novice investors who aren't prepared to dedicate the time and effort, it’s usually not the best choice.
Also known as “DIY landlording”, self-managing a rental property cuts the property manager out of the picture, with the owner handling the tenants themselves.
This strategy will certainly save the investor the property management fees. They must, however, ensure they aren't creating a false economy, with mistakes and wasted time more expensive than hiring a professional in the first place.
Remember, tenanting a property is not just about advertising for the tenant, selecting them and placing them there. It's also about regular reporting, upkeep and communication with the tenant.
You will need to keep records and paperwork in relation to their tenancy and be wary of not breaking the rules, which vary from state to state, around notice periods. If you ever need to take a trip to the Tribunal, you might wish you had a property manager.
It’s no small feat.
Those looking to negotiate with their tenants and maintain a fully functioning investment property will need:
<ol>
<li>Good communication skills and a good manner with other people;</li>
<li>Strong knowledge of tenancy laws (or the aptitude to learn these details);</li>
<li>The time to handle tenant complaints, repairs and breakages;</li>
<li>An objective approach to disputes and situations (yes, it's your property, but you need to leave your emotions at the door);</li>
<li>An organised manner, keeping accurate paperwork, calendars and details.</li>
</ol>
The Australian Landlords Panel 2012 found that landlords received higher rental yields and profits when a property manager was used, and generally had better investment experiences.
Terry Scheer Insurance executive manager Carolyn Parrella explains that property managers conduct regular inspections to identify issues, know what to look for and have a network of tradespeople and professionals to call on when necessary.
“Property managers can provide landlords with risk management benefits and potentially minimise loss for the landlord if an issue arose,” says Parrella.
“While it can be tempting to save a small percentage of rental income by self-managing your rental property, the benefits of appointing a property manager can far outweigh the costs,” she says.
Another benefit of having a property manager with local expertise is their ability to assist with vacancies. They can provide advice around additional improvements that can be made to attract tenants and warn you if the market is softening.
Good property managers have processes in place for every piece of paperwork and situation available. Similarly, should you have a question about a tenancy issue (such as "Can I still renovate mid-lease term and how can I negotiate this with my tenant?"), a professional property manager will be invaluable.
A good property manager can also make the asset a little less ‘high maintenance’. If you’re happy for repairs up to a certain dollar figure to be made without approval, you can trust your property manager to step in and sort it out. Similarly, you don’t need to be on call constantly in case something goes wrong with the property.
The cost of having a property manager in your investment team sits at 6% plus, with some competitive options in most areas, plus extra fees when advertising, re-letting or similar. The fees are usually tax deductible.
However, for “hands on” investors who live locally to their property, it may suit to self-manage and deal with your own tenants directly. Providing your personal attention to the property can have some benefits over choosing a cut-price property management company where each agent is managing a number of homes.
Online tools are increasingly making it easier to self-manage, providing the legislation and paperwork at your fingertips, and this is only set to continue.
Be honest with yourself about how much time you are willing to set aside to commit to the day-to-day running of your investment property.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2758/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>

Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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Should I self-manage the property or rely on an expert?

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<img src="https://www.urban.com.au/images/marketing/first-time-investor-series/Brought-To-You-By-RAMS.png">
The debate between positive and negative cash flow property rages, yet there’s no definitive answer. From a purely financial perspective, the majority of people would opt to have a property that pays its own way, doesn’t require them opening their own wallet each week and is growing in value at the same time.
However, not every investment property will fit into this desirable category. Many high capital growth areas offer poor rental yields that are indicative of poor cash flow levels. Similarly, many high cash flow areas have poor growth. It is wise to seek a balance between the two.
Firstly, you will want to consider your level of disposable income.
If you have spare cash and can cover the difference between the holding cost and the rental income, then you may be able to buy negatively geared property.
If you do not, then it may be better to consider positively geared property.
The second factor you should consider is how long you’ll be earning a good income for. This is often determined by age and career security. If you are close to retirement or expecting to see a drop in income, then a negatively geared strategy may not suit.
In a situation like this, you’d be looking more for positive investment options.
However, those far from retirement may have enough income to cover the shortfall by supplementing funds from a wage or salary.
Do not allow a negatively geared property to drain you financially and push you to the wall. But be wary not to be overly tempted by a strong rental income that may not be backed by capital growth – particularly if your strategy is for overall gains.
<h3>Your portfolio</h3>
It’s all about how much it costs you to hold and your overall strategy. Many investors plan to have a negative cash flow property offset by a positive cash flow one.
Over time, it’s also likely that negatively geared properties will move closer to being positive as rent increases and the mortgage is paid down. This will shift those properties from being taxing to generating an income.
Remember, it’s less about being on either end of the polarity, and more about how it balances with your personal level of affordability and overall goals for your portfolio. The first property is usually a launch pad into investing, which means that many use it for its strong capital growth over the medium term to then refinance into another investment. The cash flow at the point is merely circumstantial and, provided it is not problematic, for some it will be the best approach to focus on growth assets.
Those who have not factored cash flow in may find unexpected expenses, such as interest rate changes, maintenance costs and repairs, quickly causing their cash flow to be thrown out – this can be particularly devastating if you’re already paying out more than is comfortable each week. 
Investors should consider the impact of property vacancies and repairs regardless of their cash flow projections.
Remember, negatively geared properties can still be cash flow positive after tax. While those on higher incomes often look to negative gearing benefits to offset their own tax, it's worth remembering that your overall cash position is important, and even properties that are negatively geared can have positive cash flow.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2759/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>

Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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Should I choose a positive or negative cash flow property?

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<img src="https://www.urban.com.au/images/marketing/first-time-investor-series/Brought-To-You-By-RAMS.png">
Many people save up to renovate their properties, but this isn’t necessarily going to suit everyone and some will look for financing options through lenders.
If you’re looking to renovate a property and you need financing, you firstly need to understand how extensive that renovation is going to be.
If your investment property purchase requires a significant renovation, including major structural changes, then some form of a construction loan may still be applicable. These loans are often offered as features onto your mortgage.
While many include different features, lenders often allow the loans to be interest-only during the construction phase.
However, if it’s a smaller, less costly renovation you’re considering, there are a few other financing options. If you are willing to hold the property for a period of time while you build equity, then you may be able to refinance and access the equity, or you may be able to take the extra repayments out of an associated redraw with the loan. If you do decide to redraw, your mortgage repayments and interest will increase in line with the amount you take out, so it's worth figuring out what your extra costs will be and chose the option that best suits your situation.
A line of credit may also be an option, allowing you to only pay interest on the funds you use and offering a revolving door of funds. You should also see your expenses itemised. This suits those that will be gradually renovating over the long term or who are undertaking smaller cosmetic renovations.
Other finance options include personal loans and credit cards. Getting a personal loan can help you budget repayments, however once the loan is paid off you will need to reapply, so it makes sense to get the loan right in the first place. If costs blow out, it could be a problem.
Credit cards can be easy to lose track of and often come with substantially higher interest rates.
Ensure you do your sums before committing.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2761/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>

Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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