Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
EXPERT OBSERVER
The robust update on employment continues but with strong growth in working age population, and rising participation, it is not enough to prevent a rise in unemployment. Participation hit a new record high of 66.2 with the unemployment rate drifting up to 5.3% from 5.2%. Underemployment is also moving higher, 8.56% from 8.42% in July and back to on par with May 2019 which was the recent high. 
Westpac is forecasting the unemployment rate to continue to rise from here, on the back of a soft patch in employment, to 5.4% by end 2019 but given unemployment is now 5.3%, this is no longer a big call. 
In the year to August, the largest share of employment gains have been for full-time females (3.1%yr), male full-time employment (1.9%yr) has grown slower than total employment (2.5%yr), suggesting employment gains remain focused in the services industries that are rich in female employment. We get an industry update on employment next week. 
Rising unemployment in this update gives us some comfort that the RBA is on track to cut rates at the October Board meeting. The RBA has also given more attention to underemployment, than just unemployment on its own, when thinking about the outlook for wages a further indicator the labour market is moving in the wrong direction. 
The August Labour Force Survey reported a 34.7k gain in employment. As we head through the third quarter of the year, growth in employment remains quite robust with a three month average gain of 24k in August, almost unchanged from 25.9k in July and only slightly down from 31.9k in May.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/EmpAug2019.JPG" alt=""> 
Back in May the survey reported a strong +40.4k gain in employment with participation surging to 66.0%, boosting the labour force and therefore holding unemployment flat at 5.2% despite the very strong gain in employment. Since then, while there has been some month to month volatility in employment, the trend remains robust and yet the unemployment has drifted up to 5.3%.
Why is this so? A combination of robust working age population growth and, perhaps more importantly, participation rising to new record high.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/AugLFUnempPart.JPG" alt="">
In the year to July, employment has grown 311.0k or 2.5%. The pace of employment growth has eased back from 2.8%yr in May but it is still stronger than the 2.2%yr at the end of 2018, while the six month annualised pace has lifted to 2.6%yr from 2.3%yr in July. Our Jobs Index suggests employment should be growing around 2.3%yr currently before slowing to 2.0%yr by year end.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/AUgLF6mthAnn.JPG" alt="">
In August, unemployment rounded up to 5.3% but given that at two decimal places it was 5.25% from 5.24% in July we think it is better to describe it as being flat. Nevertheless given the robust gains in employment this is still a disappointing outcome.
In August participation hit a new record high of 66.2% (66.15% at two decimal places from 66.06% in July) resulting in a solid 38.8k gain in the labour force. We had expected that a soft employment print associated with flat participation would have driven a rise in unemployment but given the ongoing strength in population growth, it seems that employment growth can remain sound but not robust enough to bring down, or even hold, unemployment.
Today’s update is further confirmation that we are observing a robust upward trend in participation in both NSW and Victoria and while participation has eased a little in NSW, since the May record high of 66.2%; participation in Victoria hit a new record high of 66.2%.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/FemPArtRateAug209.JPG" alt="">
Back in June we were surprised by the drop in underemployment (those employed who are willing and able to work more hours) which fell 0.4ppts to 8.2%.
Underemployment did not improve as much as unemployment through 2018 and in early 2019 had been trending higher compared to the unemployment rate.
So we were not surprised that in July underemployment bumped back up to 8.4% and in August it rose again to 8.6%. Rising underemployment is a further sign that that labour market continues to underperform and that excess capacity is rising in the economy.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/AugLFUnderemp.JPG" alt="">
Justin Smirk is ‎senior economist at the Westpac Group.
This article was <a href="https://westpaciq.westpac.com.au/Article/40323/14186/" target="_blank">first published on Westpac IQ</a>.
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jrobinson-rf4aSBido9

Robust employment not enough to prevent rising unemployment: Westpac

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EXPERT OBSERVER
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As expected, the US Federal Reserve’s Open Market Committee (“FOMC”) reduced the target range for the federal funds rate by 25 basis points (quarter of a per cent) to between 1.75-2.00 per cent – the second successive rate cut.
The FOMC cited “the implications of global developments for the economic outlook as well as muted inflation pressures” as the primary reason for the cut. FOMC members voted 7-3 to cut interest rates, with one member voting for a 50 basis point cut.
The FOMC’s updated quarterly “dot plot” federal funds rate projections showed officials divided about the future direction of interest rates. 
Seven FOMC decision makers projected another 25 basis point cut before year-end, but no further cuts in 2020 to 2022. While five FOMC policymakers see rates going back to between 2.00 per cent and 2.25 per cent by year-end.
In his press conference, US Federal Reserve Chair Jerome Powell opened the door to “more extensive sequences of [rate] cuts” if needed, but emphasised that the situation should viewed as one “which can be addressed and should be addressed with moderate adjustments to the federal funds rate.” But the Fed will “act as appropriate to sustain the expansion.” 
Changes in US monetary policy settings can affect rates in Australia as well as the sharemarket and currency.
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<h1>What did the US Federal Reserve decide and what does it all mean?</h1>
Global central bankers are lowering interest rates in response to slowing economic growth. The current US expansion - while the longest in post-war history - is losing momentum. The US-China trade war, including the imposition of ‘tit-for-tat’ tariffs on imports, has reduced trade volumes and contributed to a manufacturing recession in export-dependent economies, such as Germany, China and Japan.
Trade policy uncertainty has weakened US business investment and lowered export growth. The concern of course is that the dispute will remain unresolved, with the slowdown in manufacturing activity spilling-over into the larger services sector, eventually impacting still-solid jobs growth and buoyant consumer spending.
Household consumption remains the key driver of economic activity, growing at the fastest pace in the June quarter since 2014. Retail sales also increased by 0.8 per cent in July and 0.4 per cent in August, supported by solid job gains and wages growth. 
Despite the uncertain global geo-political backdrop, FOMC members raised their expectations for US economic growth, with GDP growth now expected to grow at a 2.2 per cent annual pace this year, up from a forecast of 2.1 per cent in June. That said, long-run growth forecasts are less optimistic at a more modest 1.9 per cent. Core inflation has lifted noticeably in recent months, driven primarily by increases in health care costs, but Federal Reserve officials left their inflation projections unchanged at 1.8 per cent for 2019 and 2.5 per cent over the longer run. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/19/CommSec%20Fed%20Easing.jpg" alt="">
Along with the rate cut, the Committee also cut the interest on excess reserves (“IOER”) by 30 basis points to 1.80 per cent in an attempt to lower the effective federal funds rate towards the lower-end of its 1.75-2.00 per cent target range. The New York Federal Reserve also announced additional intervention in the US money market in order to lower short-term interest rates.
<h1>What are the implications of today’s decision?</h1>
The near-term economic outlook for the US remains solid, but US Federal Reserve Chair Powell said interest rates were cut as “we [FOMC] took this step to help keep the US economy strong in the face of some notable developments and to provide insurance against ongoing risks.” Furthermore, “weakness in global growth and trade policy have weighed on the [US] economy.” Therefore, “moderate”policy moves may be required to sustain the US economic expansion.” 
Investors seized on the monetary policy uncertainty as few clues were offered by policymakers around the timing of future interest rate moves. Therefore, US sharemarkets fell in the aftermath of the decision with the Dow Jones index down by 211 points at one stage. But shares reversed earlier losses with Dow eventually closing up by 36 points or 0.1 per cent, the S&amp;P500 index was flat, but the Nasdaq fell by 8 points or 0.1 per cent.
Shorter-dated US treasuries weakened (yields higher) and the yield curve flattened after the FOMC’s decision. US 2-year yields rose by 3 points to near 1.76 per cent and US 10-year yields fell by 1 point to near 1.80 per cent. 
The Aussie dollar fell from highs near US68.53 cents to lows near US68.15 cents and was near US68.28 cents in late US trade.Commonwealth Bank Group economists still expect the FOMC to cut interest rates in December.
<h1>Comparing the two most recent statements</h1>
The statement from the July 2019 meeting is on the left; the statement from the September 2019 meeting is on the right. Emphasis has been added to highlight key points in the wording in the statements.
Ryan Felsman is a Senior Economist for CommSec.
 
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US Fed cut a “moderate” policy move: CommSec

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EXPERT OBSERVER
As widely expected the Fed cut the Fed’s rate by another 0.25% taking it to a range of 1.75-2%, for the second cut this year.
While the Fed remains optimistic on the outlook for the US economy and made no significant changes to its economic forecasts, as with the July cut its basically taking out insurance given ongoing threats to the US outlook from the trade war and slower global growth at the same time that inflation is still running just below target. 
The current easing cycle remains a bit like the Fed easings of 1987 after the share market crash and in 1998 after the LTCM hedge fund crisis – that saw the Fed cut despite solid growth in order take out insurance in case there was a negative flow on to the economy.
The Fed was a bit less dovish than expected and this was highlighted by the so-called “dot plot” of Fed officials interest rate expectations not falling as much as expected relative to the June “dot plot” and the median dot showing no more rate cuts. Specifically seven officials see another cut by December, five are on hold and five see a hike.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/19/Global%20interest%20rates.jpg" alt=""> 
However, it’s likely that the seven who see a cut include the Fed leadership of Powell, Clarida and Williams and are mostly voting members whereas there is a likely a lot of non-voters in the five who see no change and the five who see a hike. So the dot plot is likely more dovish than it looks. 
Our assessment remains that another 0.25% easing is likely, probably in October or if not then in December. The risks to the growth outlook – particularly on trade - won’t go away quickly and that the Fed appears to have taken the decision that it’s easier to control a rise in inflation than a further slide or deflation.
Fed Chair Powell did not seem too concerned about liquidity stresses in the US money market (which look related to corporate tax payments, higher budget deficits and the impact of quantitative tightening) but he did indicated that the Fed may need to resume allowing its balance sheet to grow with the economy. This is not quite QE and its much smaller but it would ease liquidity stresses. In the meantime the New York Fed is continuing to address the issue by injecting funds into the money market (via repurchase operations). 
Interestingly Fed Chair Powell said that if the Fed Funds rate does have to go back to zero, that would be the lower bound. In other words the Fed would not take rates negative.
The directional relationship between US and Australian interest rates weakened long ago. The RBA started raising rates in 2009 when the Fed held at zero, it was easing in 2016 when the Fed was hiking and this year it started cutting ahead of the Fed. See the next chart.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/19/Fed%20market%20expectations.jpg" alt=""> 
So just because the Fed moves doesn’t mean the RBA will too. On the one hand the Fed’s easing along with stimulus elsewhere globally should help support global growth which is good for Australia. But it’s probably not enough to change the outlook for the RBA and its perception that global risks have increased. . Our view remains that it’s on track to cut the cash rate to 0.5% in the months ahead in two 0.25% moves and to some degree the Fed cutting and the ECB easing last week reinforces that to the extent that the RBA would like to keep the Australian dollar down. 
Falling interest rates are generally positive for shares, unless there is a global recession. While the risk of recession has gone up thanks to the trade war and conflict in the Middle East we remain of the view that it will be avoided.
DR SHANE OLIVER is Head of Investment Strategy and Chief Economist AMP Capital.
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soliver-smf6LQXgW9

Fed eases again - but they are still just insurance cuts: Shane Oliver

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As announced by Prime Minister Scott Morrison during the 2019 election campaign, from 1 January 2020 eligible first home buyers will be able to enter the housing market sooner.
Up to 10,000 guarantees per year will allow eligible first home buyers to purchase a home with a deposit of as little as five per cent.
Applicants will be subject to a range of eligibility criteria, including taxable incomes of up to $125,000 per annum for singles and up to $200,000 per annum for couples in the previous year, they must be Australian citizens purchasing property in Australia and they must be taking out owner-occupied loans on a principal and interest basis. 
Properties purchased under the First Home Loan Deposit Scheme will be subject to regional price caps. 
Regional price caps will be set with a view to ensuring equitable access to the scheme across Australia.
The coverage of the guarantee will be broadly consistent with parental guarantee products offered by some lenders. The guarantee will remain in place until a loan is refinanced or the outstanding loan balance falls below 80 per cent of the property purchase price—whichever comes first.
Access to the First Home Loan Deposit Scheme will occur as part of the normal home loan application process, with limited additional effort for first home buyers being required when seeking a guaranteed loan, the assistant Treasurer and Minister for Housing, Michael Sukkar said.
The bill introduces amendments to the National Housing Finance and Investment Corporation Act 2018 to implement the First Home Loan Deposit Scheme and establish a new research function within the National Housing Finance and Investment Corporation.
The bill expands the National Housing Finance and Investment Corporation's functions to enable it to provide guarantees.
Sucker noted based on median household income and a 15 per cent saving rate (on before-tax income), it takes approximately eight years to save a 20 per cent deposit on a median priced home. 
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j.ballantyne1990-6AQqhLzZaK

How the First Home Loan Deposit Scheme guarantee will work 

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Walker Corporation’s Parramatta Square development has attracted two new tenants.
GT Insurance and Universal Fitness have committed to 4 Parramatta Square.
4 Parramatta Square is the first of four towers in Parramatta Square development and will open in December 2019. 
GT Insurance and Universal Fitness will join anchor tenant the NSW Government in the 65,000 square metre, 40 storey building.
A subsidiary of Allianz Insurance, GT Insurance diversifies the mix of occupants at Parramatta Square.
"The office relocation from St Leonards has been welcomed by staff travelling from Western Sydney," Greg Walsh, General Manager, at GT Insurance said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/18/4PSQ%20Property%20NSW%20fitout%203.jpg" alt="">
NSW Government fit-out, indicative of GT Insurance fit-out
Occupying over 1,000 square metres of retail space, Universal Fitness has committed to a 10 year lease.
"The drawcard for us was the number of high quality corporate firms and diverse workforce that the development brings," co-founders of Universal Fitness Kumar Ramachandra and Anthony Kerkmez said.
The gym will include a wide range of Technogym equipment, personal training, a variety of group Les Mills classes from Body Pump to, boxing, Yoga and more.
It is expected that more than 5,000 staff will work in 4 Parramatta Square.
Wellness factors employed in 4 Parramatta Square include an agile working environment, greater use of outside air, lighting system, and a minimum 5 Star Green Star fit-out, according to the marketing. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/18/Parramatta%20Square%2020.jpg" alt="">
Construction of the first tower is close to completion.
Award winning architects Johnson Pilton Walker created the design.
It features atriums and staircases that promote workplace connectivity, winter gardens and a range of amenities, including retail outlets and a business and events centre, catering for up to 200 people. 
With the NSW Government and GT Insurance confirmed as tenants, 450 square metres remains available at 4 Parramatta Square.
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GT Insurance and Universal Fitness take up Parramatta Square leases 

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EXPERT OBSERVER
In Australia we saw the release of consumer and business surveys for August/September. Offshore, the ECB’s well telegraphed announcement of new stimulus largely met expectations.
As we saw in last week’s June quarter GDP report, the Australian economy is navigating a period of cyclical weakness. The question going forward is to what extent recent RBA rate cuts and tax offset receipts support the economy in the second half of 2019 and into 2020. Disappointingly, the private sector surveys released this week are yet to show any response.
Starting with the NAB Business Survey, not only was there an absence of a bounce, both conditions and confidence slipped further in August and remain at below average levels. Conditions declined 2pts to +1 – the softest result since 2014 – and confidence was down 3pts to +1. While employment conditions rose 2pts to +2 in the month, the trend is clearly moving lower. That stands in contrast to ABS employment growth figures which have held robust to July – the August update to be released next week.
Dour business sentiment was also echoed in the Q3 release of our Australian Chamber-Westpac survey of industrial trends. The Westpac–AusChamber Actual Composite index fell sharply to 52.9 in September from 61.5 in June, continuing the weakening trend seen since mid-2018.
Similarly for the household sector, our Westpac-MI Consumer Sentiment survey lapsed back into slight negative territory again, down to 98.2 in September from 100 in August. The survey contained additional questions on the new tax offset payments received from July 1 for the 2018/19 financial year. Just over 16% of consumers reported receiving a payment. Amongst that cohort, 29% planned to spend it all, and a further 16% planned to spend over half. The remainder (53%) planned to spend less than half including around 25% who planned to save the full payment. Yet, perhaps the most telling indicator of the impact of the new stimulus (or lack thereof) is our regular ‘finances vs a year ago’ sub-index which declined 2.5% to a well below average 84.3.
The sombre consumer mood stands in contrast to further affirmation that the residential property market is stabilising. This week’s release of July housing finance approvals showed the total value of finance up 5.1%. That is broadly consistent with the improvement in auction activity and prices seen through June to August.
It therefore appears that concerns about the state of the domestic economy, broader international conditions and employment are having a more dominant effect on the consumer mindset. New stimulus measures may need more time to have an effect, but at this stage, overall data are still painting a soft economic backdrop.
As such, we continue to believe the RBA is set to deliver 25bp cuts in October and February. Our RBA forecast is explained in our September Market Outlook released this week which covers our broader view on Australian and global economies, FX, rates and commodities.
Of note in this month’s edition is an update to our US forecast. As announced last Friday, we now expect in addition to our previous forecast of FOMC cuts in September, October and December, a further two cuts in March and June, taking the federal funds rate to 0.875%.
In that respect, Thursday’s ECB meeting offered an interesting prelude to next week’s FOMC meeting.
The ECB cut the deposit rate 10bps to -0.5%, moved to a tiered reserve system (for each bank, a multiple of six times minimum reserves will be exempt from the deposit rate charge and instead receive a juicy 0.0%), restarted asset purchases (€20bn per month pace and will persist for as long as necessary), repriced TLTRO's (cheap bank loans incentive rate 10bps cheaper at -0.5%), and strengthened forward guidance.
All up, the stimulus package broadly came in line with our own expectation. We did not anticipate the repricing of TLTRO-III but had expected a larger €40bn per month asset purchase program. We continue to believe the program will be lifted to that pace in 2020 and the deposit rate will be reduced to a low of -0.7%.
As we had seen going into the meeting, not all ECB members agree with the new stimulus, with some of the opinion that economic conditions were not weak enough to warrant restarting asset purchases. Draghi’s time as ECB president has faced significant criticism from within the ECB, and more recently, ire from US President Trump (who once again reiterated his belief that the ECB are targeting the exchange rate). But at his last meeting, Draghi did get a unanimous agreement that fiscal policy should be the main instrument going forward.
Finally, to finish on a more upbeat note, we did at least see some tentative positive developments this week in regards to the US-China trade war and, to some extent, Brexit.
The trade situation calmed down a notch after China released a list of goods that will be exempted from the retaliatory tariff on US imports. In return, the US offered a good will gesture by delaying the scheduled 25% to 30% tariff increase on $250bn of imports by two weeks to October 15.
With Brexit, we saw the Benn bill become law. This will effectively force PM Johnson to request a three month extension to the exit deadline unless a deal is found before October 19. Following that, the Government made a second attempt to call a general election, but once again, failed. Parliament is now suspended to October 14.
ELLIOT CLARKE is a senior economist at Westpac.
SIMON MURRAY is an economist at Westpac
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No signs yet of a rebound in consumer or business sentiment: Westpac 

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GUEST OBSERVATION
Well, the dust has finally settled on the new legislation regarding the changes to depreciation that will apply to second-hand residential properties.
In this article we will dig deep into some of the questions we have commonly been asked since the 9th of May 2017, when the changes were announced in the Federal Budget.
Before we get into the nitty gritty let’s begin with a quick recap.
Property investors who acquire a second-hand residential property after May 10, 2017, that contain “previously used” depreciating assets, will no longer be able to claim depreciation on those assets. Depreciating assets, in this case, refers to things like ovens, dishwashers, blinds, etc.
As you already know, in 2017, the rule book on depreciation changed massively.
The Federal Government successfully voted on new legislation to change the way depreciation works, representing the biggest move in the industry that I’ve ever seen – and I’ve been a quantity surveyor for over 25 years!
The changes were effective as at 9 May 2017 at 7.30pm, when the federal budget was handed down. As you can imagine, they have huge implications for property investors and more importantly, the property equation, which we’ll go into later.
So, how have things changed exactly?
The best way to understand it is to break the changes down into nine simple key points:
<ol>
<li>If you acquire a second-hand residential property from 10 May 2017, which contains ‘previously used’ depreciating assets, you will no longer be able to claim depreciation on those assets. This refers to the plant and equipment portion of a depreciation schedule, including: Ovens, Dishwashers, Lights, Air-conditioners. Televisions, Carpets, Lounge suites, Blinds, Common property plant and equipment items. 
</li>
<li>However, the building allowance, or claims on the structure of the building, has not changed at all. You will still need a depreciation schedule to calculate these deductions, which typically accounts for 85% of the overall construction cost. The structure includes things like brickwork and concrete so there’s no change to that. 
</li>
<li>Acquirers of brand-new property will carry on claiming depreciation in exactly the same way as they have done so to-date – for both plant and equipment and structure. This is great news for the property industry, because a lot of developers rely on depreciation as part of their marketing strategy to attract investors. The government resisted making changes to depreciation on brand-new property because it did not want to halt construction, which would have impacted upon the supply of new property. A downturn in the construction industry would also have a knock-on effect – if tradies are out of work, they aren’t paying tax! 
</li>
<li>If you renovate a house while living in it, then sell the property to an investor, the assets will be deemed to have been previously used and the new owner cannot claim depreciation on the plant and equipment. 
</li>
<li>The proposed changes do not apply if you buy the property in a corporate tax entity, super fund (note self-managed super funds do not apply here) or a large unit trust. In other words, you can still buy a second-hand property in a company name and claim depreciation on it. You can buy a second-hand property in a super fund – as long as it’s a large one – and a large trust can buy a property as long as it has 300 members or more, and claim depreciation on that property. 
</li>
<li>The proposed changes only relate to residential property. Commercial, industrial, retail and other non-residential properties are not affected, so you can still buy a second-hand office or similar and continue to claim the second-hand carpet, exactly as you could before. You can’t do this for residential property, as I’ve explained above. 
</li>
<li>If you engage a builder to build a brand-new house, or do the work yourself and it remains an investment property, you will still be able to claim depreciation on both the structure and the plant and equipment items. This is because it’s brand new, and was brand new when you put in that oven. Therefore, you can still claim it because the costs are known. 
</li>
<li>If you engage a builder to renovate a property – or you do the work yourself – and it is also being used as an investment property, you will still be able to claim depreciation on it when you have finished the renovations. As above, this is because the assets you install are brand new, therefore you can still claim. But if you bought a property renovated by someone else and they lived in it for six months or a year and then sold it – you can’t claim depreciation on the oven and dishwasher, etc. in the future, because they have now been previously used. See the difference? 
</li>
<li>While investors purchasing second-hand property can now no longer claim depreciation on the existing plant and equipment, they will have the benefit of paying less capital gains tax when they sell the property. How? Well, when they replace or remove an item of plant &amp; equipment they would have been able to claim in depreciation under the previous legislation, the opening value of the asset can be claimed as a capital loss.</li>
</ol>
In my opinion, it seems like a lot of work to get the same result. The new rules have just moved depreciation from one line of the budget to another!
The good news is that the new legislation is ‘grandfathered’. That means that for everyone out there with an existing depreciation schedule, you can continue to claim exactly as you have been doing. So, if you bought a property prior to the budget – 9 May 2017 – nothing has changed. And if you have bought an investment prior to this date, and you don’t have a depreciation schedule, there’s never been a better time to get one! You might not get these allowances again.
One final point on grandfathering; if you bought a property prior to the budget and it is owner-occupied, and then you move out after 1 July 2017 – you will not be able to claim depreciation on the plant and equipment in that property.
Those items will be deemed to be previously used and caught in the net of the changing legislation – even though you acquired the property prior to the budget. So, these changes are kind of ‘half grandfathered’ if you ask me.
You will, however, still be able to claim the building allowance in this scenario if the property was built after 1987.
TYRON HYDE is a director of quantity surveying firm Washington Brown.
Read the <a href="https://www.washingtonbrown.com.au/blog/depreciation-budget-changes/?utm_source=ONTRAPORT-email-broadcast&amp;utm_medium=ONTRAPORT-email-broadcast&amp;utm_term=&amp;utm_content=The+New+Rules+-+We+wanted+to+make+sure+you+know&amp;utm_campaign=17092019" target="_blank">original article</a>.
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Understanding new depreciation legislation on second hand residential property: Tyron Hyde

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The latest figures from the Australian Bureau of Statistics show the value of new loans to investors (excluding refinancing) across Australia jumped by 4.7% in July – the highest monthly gain since September 2016.

On the east side of the country, Canberra led the way with a 22% spike in the value of loans from June to July, followed by Queensland at 8.1%, Victoria at 5.7% and NSW at 2.0%. 

<a href="http://www.switzer.com.au/the-experts/john-mcgrath-property-expert/" target="_blank">John McGrath told Switzer readers</a>, "My best piece of advice for property investors is to buy quality and focus on location and aspect."

"Go for a quality property in a great street, in a desirable neighbourhood, with plenty of amenities such as cafes, shops and public transport. These properties might cost a bit more, but you’ll get better capital gains."

"In terms of locations, I think a good strategy is buying close to new infrastructure. There is so much building going on and this is creating opportunities for investors to capitalise, especially in areas where prices have fallen during the downturn," he added.

[smartcode_project:default project_id=3783]

He analysed the impact and reasons that investing near the Melbourne North East Link freeway, starting 2020 with the aim of opening in 2027, may have potential.

Impact: Connecting the M80 with an upgraded Eastern Freeway, this $15.8 billion road will cut travel times by up to 35 minutes to Melbourne’s rapidly growing northern suburbs. The commute by public transport will improve with the city’s first dedicated busway, with express lanes along the Eastern Freeway from Doncaster to the city.

Opportunity: Suburbs along the new road’s corridor should receive a boost. Take Greensborough, which will see greatly improved traffic flow with a new interchange at Grimshaw Street as part of the project. The median house price peaked at $830,000 in 2017 and today it sits at $755,000. The median apartment price was $633,750 in 2018 and it is now $570,000.

Prediction: CoreLogic-Moody’s Analytics predicts very strong growth of 18% in house prices in the North East, which includes Greensborough; and 5.1% growth for apartments over CY20 and CY21.

[smartcode_project:default project_id=22584]

He also looked at the latest <a href="/expert-insights/investing/melbournes-16-billion-north-east-link-freeway-is-an-investor-opportunity-john-mcgrath">Melbourne</a>, <a href="/news/act/canberra-investors-lead-in-loans-where-should-they-buy-john-mcgrath">Canberra</a>, <a href="/expert-insights/investing/residential-property-near-brisbanes-cross-river-rail-pinpointed-as-investor-opportunity-john-mcgrath">Brisbane</a> and <a href="/expert-insights/investing/john-mcgrath-suggests-investors-buy-within-10-minutes-of-sydney-metro-north-west-train-stations">Sydney</a> infrastructure developments and the impact they have had and will continue to have.

JOHN MCGRATH is the Founder &amp; Executive Director of McGrath
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jmcgrath-6XcGQCVx3d

Melbourne's $16 billion North East Link freeway is an investor opportunity: John McGrath

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The latest figures from the Australian Bureau of Statistics show the value of new loans to investors (excluding refinancing) across Australia jumped by 4.7% in July – the highest monthly gain since September 2016.
On the east side of the country, Canberra led the way with a 22% spike in the value of loans from June to July, followed by Queensland at 8.1%, Victoria at 5.7% and NSW at 2.0%. 
<a href="http://www.switzer.com.au/the-experts/john-mcgrath-property-expert/" target="_blank">John McGrath told Switzer readers</a>, "My best piece of advice for property investors is to buy quality and focus on location and aspect."
"Go for a quality property in a great street, in a desirable neighbourhood, with plenty of amenities such as cafes, shops and public transport. These properties might cost a bit more, but you’ll get better capital gains."
"In terms of locations, I think a good strategy is buying close to new infrastructure. There is so much building going on and this is creating opportunities for investors to capitalise, especially in areas where prices have fallen during the downturn," he added.
He analysed the impact and reasons that investing near the Sydney Metro North West may have potential.
Impact: A game changer for the Hills District, where residents have had to endure long trips on packed buses to the CBD for many years
Opportunity: Fantastic time to buy in suburbs along the line within a 10-minute walk of stations. Hills prices dipped 10-15% in line with Sydney throughout the downturn. For example, Castle Hill’s median house price in 2017 was $1,620,000 and today it is $1,347,500. The median apartment price in 2017 was $890,000 and today it is $815,000. 
Prediction: CoreLogic-Moody’s Analytics predicts 15.3% house price growth in Baulkham Hills/Hawkesbury, which encompasses the Hills; and 9.5% for apartments over CY20 and CY21. 
He also looked at the latest <a href="/expert-insights/investing/melbournes-16-billion-north-east-link-freeway-is-an-investor-opportunity-john-mcgrath">Melbourne</a>, <a href="/news/act/canberra-investors-lead-in-loans-where-should-they-buy-john-mcgrath">Canberra</a> and <a href="/expert-insights/investing/residential-property-near-brisbanes-cross-river-rail-pinpointed-as-investor-opportunity-john-mcgrath">Brisbane</a> infrastructure developments and the impact they have had and will continue to have.
JOHN MCGRATH is the Founder &amp; Executive Director of McGrath
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John McGrath suggests investors buy within 10 minutes of Sydney Metro North West train stations

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The latest figures from the Australian Bureau of Statistics show the value of new loans to investors (excluding refinancing) across Australia jumped by 4.7% in July – the highest monthly gain since September 2016.
On the east side of the country, Canberra led the way with a 22% spike in the value of loans from June to July, followed by Queensland at 8.1%, Victoria at 5.7% and NSW at 2.0%. 
<a href="http://www.switzer.com.au/the-experts/john-mcgrath-property-expert/" target="_blank">John McGrath told Switzer readers</a>, "My best piece of advice for property investors is to buy quality and focus on location and aspect."
"Go for a quality property in a great street, in a desirable neighbourhood, with plenty of amenities such as cafes, shops and public transport. These properties might cost a bit more, but you’ll get better capital gains."
"In terms of locations, I think a good strategy is buying close to new infrastructure. There is so much building going on and this is creating opportunities for investors to capitalise, especially in areas where prices have fallen during the downturn," he added.
He analysed the impact and reasons that investing near the Brisbane Cross River Rail which is starting at the end of 2019, with the aim of opening 2024, may have potential.
Impact: Stretching from Dutton Park to Bowen Hills, the 10.2km line will provide a second river crossing so more trains can run. It will include four new stations and revitalised precincts at Boggo Road, Woolloongabba, Albert Street and Roma Street, with upgrades to existing stations at Dutton Park, Exhibition, Salisbury, Rocklea, Moorooka, Yeerongpilly, Yeronga and Fairfield. 
Opportunity: We tend to see a lift in property values when projects are announced, commenced and completed. Using Woolloongabba as a case study, the median house price sat around $770,000 from 2015 to 2018 but is now starting to grow. It’s $822,000 today, up 7.9% over FY19. The median apartment price has been drifting down since 2015 from $526,500 to $405,000 today.
Prediction: CoreLogic-Moody’s Analytics predicts 1.2% growth in house prices and 9.1% growth for apartments over CY20 and CY21 in Brisbane-South, which incorporates Woolloongabba, Fairfield, Dutton Park and Yeronga.
He also looked at the latest <a href="/expert-insights/investing/melbournes-16-billion-north-east-link-freeway-is-an-investor-opportunity-john-mcgrath">Melbourne</a>, <a href="/news/act/canberra-investors-lead-in-loans-where-should-they-buy-john-mcgrath">Canberra</a> and <a href="/expert-insights/investing/john-mcgrath-suggests-investors-buy-within-10-minutes-of-sydney-metro-north-west-train-stations">Sydney</a> infrastructure developments and the impact they have had and will continue to have.
JOHN MCGRATH is the Founder &amp; Executive Director of McGrath
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