Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Stamp Duty

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Some Victorian home buyers will pay less stamp duty until June next year.
The Victorian State Treasurer Tim Pallas announced the cut in stamp duty would apply to home sales under $1 million only.
The duty will be paid at a rate of 50 per cent for new build homes and 25 per cent for existing properties, from Wednesday until the end of June 2021. 
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<div class="styles__Container-sc-1ylecsg-0 goULFa">New residential builds valued under $1 million will receive a 50 per cent waiver on stamp duty up to $27,500.</div>
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Buyers on existing residential properties will secure a 25 per cent saving of up to $13,750.
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The discounted rate is aimed at stimulating Victoria’s housing market after coronavirus pandemic-related restrictions.
“With a waiver on stamp duty, we’ll help more Victorians find their home and get more Victorians back to work,” Treasurer Tim Pallas said.
All purchases of more than $1 million will pay the full stamp duty amount. 
The budget measure was part of the government’s “Big Housing Build”.
The state government forecasts an 11 per cent peak-to-trough fall in house prices, with the lowest point being next in June.
They forecast that prices will only recover to pre-COVID-19 levels in 2022-23.
The budget papers revealed a 25 per cent drop in stamp duty revenue to $4.6 billion in the 2020-21 financial year.
“Land transfer [stamp] duty is expected to recover from 2021-2022 and grow by an average of 15.4 per cent a year, over the forward estimates, but is not expected to reach the 2018-2019 level until 2022-23,” the budget papers stated.
“It’s about equity and putting the support and effort where it can best have effect,” Pallas said.
“The aim is to get as many people in that price bracket [$1 million] and below back into the market.”
 
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jchancellor-FAypfDUnLy

Some Melbourne home buyers will pay less stamp duty until June next year

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GUEST OBSERVATION
In tax as in many endeavours, it’s easy to work out how things should be; harder to work out how to get there.
In NSW, Treasurer Dominic Perrottet wants to replace the one-off stamp duty on real estate transactions with an annual <a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-11/NSW%20TSY%20TF%20-%20Glossy.pdf">land tax</a>.
In the long run, this one single reform could produce the biggest possible gains of any tax reform, state or federal.
This graph from the federal treasury’s 2015 <a href="https://treasury.gov.au/sites/default/files/2019-03/c2015-rethink-dp-TWP_combined-online.pdf">tax discussion paper</a> makes the point.
It says the “marginal excess burden” (damage) done by real estate conveyancing taxes amounts to 70 cents for each dollar raised.
It means people and businesses change addresses less often than they should. Households live further away from their work than they would like to, are reluctant to move to where there is better work, and spend money extending houses instead of moving to better ones.
Businesses resist changing property location and type when changes in markets and costs suggest they should.
<a href="https://images.theconversation.com/files/370724/original/file-20201123-19-16bujkx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/370724/original/file-20201123-19-16bujkx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://treasury.gov.au/sites/default/files/2019-03/c2015-rethink-dp-TWP_combined-online.pdf">Tax discussion paper, Australian Treasury March 2015</a>
In contrast, the treasury found the marginal excess burden of land tax was negative. By that it means every dollar raised actually makes things better off by making land more likely to be used for its best purpose and making land less likely to be not used at all.
Swapping the worst tax the treasury modelled for the best tax it modelled ought to have a huge economic payoff for use of property, for productivity and for living standards.
It’d also be fairer.
The NSW <a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-10/FFR%20Final%20Report%20-%20200828%20%281%29.pdf">Thodey Review</a> of federal financial relations commissioned by Treasurer Perrottet notes that 26% of owner-occupiers have remained in the same property for at least 20 years.
Most of these long-term same property owners have benefited “not only from the services provided by the state over that time, but also from a once-in-a-generation land price windfall”.
In exchange for these gains, they have contributed very little towards essential services and critical infrastructure via property taxation. Others who have moved more often than the average to find a job, to be closer to schools, or to match housing size to changes in their family situation have picked up the tab.
Thodey also identifies other reasons for making the switch. Land tax revenue is more stable and predictable than revenue that soars and dives at times when people are buying or are not buying properties.
How you get there matters
The Australian Capital Territory is well on the way.
In 2012-13 it began a <a href="https://www.allhomes.com.au/news/cbr-how-act-home-owners-are-affected-by-the-act-tax-reform-program-new-report-982274/">20-year transition</a>. Stamp duty and insurance duty are being wound back (for everyone) and replaced by <a href="/news">increases to general rates on land</a>.
The transition is roughly revenue-neutral.
NSW is proposing a different approach. It is considering asking new buyers to “<a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-11/NSW%20Treasury%20property%20tax%20proposal%20Consultation%20Paper.pdf">opt in</a>” to an annual land tax in return for escaping stamp duty. Once a buyer has opted in, future buyers of that property won’t be able to opt out. They will pay land tax instead of stamp duty.
It’ll mean no property owner, new or old, need be a loser in the first instance.
But it will stretch out the transition and involve very large reductions in revenue for years to come, with smaller but still-substantial losses over decades.
As an illustration, assume that in year one, rather than paying $100 of stamp duty, the buyer chooses to pay a much smaller annual land tax.
NSW is going the long way
On average about 5% of properties change hands each year, meaning on average each is transferred once every 20 years. That means that to be revenue neutral in the long term the annual land tax should be set at 5% of the stamp duty.
If all the buyers in the first year switch over to land tax, the government will lose 95% of the money it would have got from stamp duty in that year.
With the passing of time and a larger share of owners paying land tax the shortfall will get smaller. But even after a decade, it might be as much as 50%.
Some buyers will never opt-in
And the voluntary opt in will give buyers who expect to hold a property for longer than average, for more than 20 years, an incentive to turn down the offer of land tax and pay (the lesser) stamp duty as before; while those who expect a short stay will opt for the (lesser) land tax.
This entirely rational behaviour will further reduce government revenue, aggravate the inequity of the system we’ve got, lock some owners into the properties they already own in order to avoid paying for government services, and postpone the benefits of moving to a system in which tax doesn’t distort the use of land.
It’s easy to see why Perrottet has gone for a voluntary switchover.
There are better ways to avoid double taxation
Without some sort of concession, recent buyers would find themselves taxed twice, once through stamp duty and then again through annual land taxes.
The ACT’s 20-year transition is one way to get around the problem.
Despite concerns, it has <a href="https://grattan.edu.au/submissions/nsw-should-swap-stamp-duties-for-a-broad-based-property-tax/">proved popular enough</a>.
Eight years in, the ACT Labor government has just won it’s <a href="https://www.news.com.au/national/nsw-act/politics/act-votes-will-labor-secure-a-sixth-term/news-story/fb16a95da53cb48cc31f1591b54abd66">sixth consecutive election</a>.
A quicker way of realising the gains from switching while reducing double taxation would be to introduce land tax immediately and give recent buyers a partial credit for the stamp duty they’ve paid.
As an example, stamp duty paid in the past one, two, three, four and five years could receive a credit of 100%, 80%, 60%, 40% and 20%, respectively.
It would cost revenue over the transition period, but not as much as the opt in arrangement proposed by the NSW treasurer, and after that short period the switch would be revenue-neutral. Importantly, it would reap the full efficiency benefits from day one, and ensure everyone paid the tax they should.<img src="https://counter.theconversation.com/content/150629/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/john-freebairn-90">John Freebairn</a>, Professor, Department of Economics, <a href="https://theconversation.com/institutions/university-of-melbourne-722">University of Melbourne</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/axing-stamp-duty-is-a-great-idea-but-nsw-is-going-about-it-the-wrong-way-150629">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Axing stamp duty is a great idea, but NSW is going about it the wrong way

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NSW stamp duty is set to be reformed for the first time since 1985 when the rates were amended.
The government <a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-11/0920-01_NSW%20TSY%20Consultation%20Paper_v6.pdf" target="_blank">is seeking public feedback</a> on the proposal to replace stamp duties with a broad-based land tax.
The change was mooted in the New South Wales state budget.
Treasurer Dominic Perrottet revealed plans to reform the “inefficient property tax system” currently in place, but will await the feedback before any implmentation.
The discussion will centre around transitioning from the current model of a mandatory upfront stamp duty, to one where buyers have the choice to instead pay an annual land tax on new property purchasers based on the value of their land.
The rates are set to vary for owner-occupiers, investors and commercial tenants.
"If implemented, the proposed changes could give you the freedom to choose between paying stamp duty upfront or paying a much smaller annual property tax, when you buy your next home," reads the NSW Treasury website. 
"Removing the upfront cost of stamp duty could remove tens of thousands of dollars from the home purchase process and make it easier for first home buyers, families looking to upgrade and others looking to change their property to save what is needed to purchase their next home.
"Unless you are buying a property, there would be no change. If you have already paid stamp duty on your existing property, you would not be subject to an annual property tax. There would be no double taxation."
The HIA executive director David Bare noted stamp duty was impeding the ability of the population to shift to pursue education and employment opportunities elsewhere. 
“Stamp duty is an inequitable tax which falls on a small cohort of taxpayers who need to move for varying reasons including for employment, education and training, health or financial reasons," Bare said.
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NSW Government seeks to reform property stamp duty

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On the 27th of July, the New South Wales government announced eligible first home buyers could access stamp duty exemptions on new home purchases worth up to $800,000.
New home builds will also see stamp duty discounts available for purchases between $800,000 and $1 million, where the discount reduces with a higher purchasing price. The policy is a temporary, 12-month extension of existing stamp duty concessions from the 1st of August 2020.
Based on housing market trends that emerged from the initial introduction of stamp duty discounts and other first home buyer incentives, there a few trends we may expect to emerge from the new round of stamp duty discounts.
First home buyer demand will increase
Previous research suggests that first home buyer grants and incentives have had a ‘vacuum’ effect, where first home buyer incentives are followed by large, but temporary, spikes in first home buyer activity. This suggests the incentives bring forward purchases that may have happened anyway. The fact that the new stamp duty discounts on offer will only be available for 12 months is likely to exacerbate this effect.
The increase in first home buyer participation over a limited time window may actually lead to an increase in values up to the cut off values for stamp duty concessions. This is because buyer competition could be increased in this segment while added incentives are on offer. Furthermore, the reduced transaction costs associated with stamp duty exemptions mean borrowers have higher purchasing capacity, which may just be added onto the purchase price while first home buyer demand is elevated.
One important mitigating factor is that the demand shock created by COVID-19 may not be enough to increase first home buyer demand.
However, at the very least, first home buyer participation would be higher than it otherwise would have been as a result of the stamp duty discount.
Price ‘clustering’ could move up to the $800,000 mark
Research of sales volumes by price suggests that sales volumes tend to ‘cluster’ just under the cut-off point for complete stamp duty exemptions, so that first home buyers can avoid paying the tax.
CoreLogic sales volume data across NSW shows that there is a bunching of sales between the $640,000 and $650,000 price point between July 2017 and June 2020.
$650,000 was the cut off point for stamp duty exemption for first home buyers in this period. This is demonstrated in the charts on the following page, which show the volume of sales across NSW by value range for the two years before and after the introduction of stamp duty discounts for sales up to $650,000.
While the $650,000 price point seemed to be an anchoring point for buyers before the introduction of stamp duty exemptions, the difference in sales volumes is exacerbated after exemptions are introduced.
The number of sales at $640-650,000 was 32% higher than the band below, and is 49% higher than sales in the value band above. This is a greater divergence than was observed between these value bands in the two years before the introduction of stamp duty exemptions.
As the stamp duty exemption increases to $800,000, this could see a broader range of properties increase in value up to this level. This price inflation would be skewed toward new home builds where the discounts apply.
The incentive to avoid tax could increase turnover now, but dampen it later
An interesting feature of the stamp duty discounts for first home buyers is that they extend to property values worth up to $1 million. This is likely to be beyond the typical first home buyer purchase point across NSW.
Deriving the average borrowing amount by first home buyers from ABS housing finance data suggests that a typical first home buyer purchase price averaged closer to $625,000 between July 2019 and May 2020.
By raising the threshold to $1 million, there is more diversity in the housing stock that first home buyers can access with stamp duty discounts, particularly across Sydney where property values are higher than in other capital cities.
<img src="https://www.urban.com.au/images/2020/7/30/CL%20stamp%20duty%20concessions.JPG" alt="">
But by incentivising first home buyers into a more expensive, and presumably larger home earlier in life, first home buyers may stay put for longer, in order to avoid paying stamp duty on upsizing down the line. This could extend hold periods, thus potentially reducing the amount of turnover that takes place in future.
Overall, the expected impact of this temporary discount in stamp duty should bring forward the purchase of property among first home buyers, and skew more first home buyers to new property. This is good news for those in the construction industry, and, considering the broad range of industry sectors involved in residential construction, there should be a positive flow through to economic activity.
However, considering the potential for higher housing prices, stamp duty exemptions may be limited in helping first home buyers access cheaper housing. 
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pchatterjee-seVgoiQgz5

The impact of NSW stamp duty discounts: CoreLogic's Eliza Owen

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First home buyers and the construction industry will benefit greatly from the elimination of stamp duty on newly-built homes below $800,000 and a reduction in thousands of dollars for properties up to $1 million.
Premier Gladys Berejiklian said the change to stamp duty thresholds would also support new home construction and create jobs as part of the Government’s COVID19 Recovery Plan.
“Thousands of people will see their bank balances benefit from this change - it will help get more keys into more front doors of more new homes,” Ms Berejiklian said.
“It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before.”
<img src="https://www.urban.com.au/images/2020/7/27/Tax%20Threshold.JPG" alt="">
Under the changes the threshold above which stamp duty will be charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million.
The Government forecasts more than 6,000 first home buyers will benefit from the changes, saving eligible first homebuyers thousands of dollars.
Under the changes the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000. The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for a 12-month period, commencing on 1 August 2020.
The NSW Government will also continue to offer a $10,000 First Home Owner Grant, which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000 in total. This means the maximum amount of benefit a home owner could be entitled to is $32,335 if purchasing a new home and accessing the grant.
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NSW FHB stamp duty to be slashed as part of COVID-19 recovery plan

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Urban Taskforce Chief Executive, Tom Forrest, today congratulated NSW Premier Gladys Berejiklian and Treasurer Dominic Perrottet for taking the lead by extending the exemption of stamp duty for first home buyers which will now apply to new homes worth up to 800,000.
Stamp duty relief will also apply, on a scaled basis, to newly built homes valued between $800,000 and $1 million as well as to vacant land worth up to $400,000.
Today the Commonwealth Treasurer called for Dominic Perrottet to put his cards on the table. Unbeknown to Josh Frydenberg, the NSW Government had already taken the decision to slash stamp duty on newly built homes worth up to $800,000. This will make a big difference to the struggling property market and to new buyers.
The problem with stamp duty and payroll tax is they are distortionary. The have the effect of creating a bias in the property market which slows down property transactions and payroll tax is simply a tax on employment – it is nuts.
Today’s announcement to increase the stamp Duty threshold from $650,000 to $800,000 is recognition by Treasurer Perrottet that housing prices are higher is Sydney than in the rest of the nation. The Urban Taskforce calls on the Commonwealth to apply these new thresholds to the HomeBuilder package and make it relevant to the biggest market in the nation – that of Greater Sydney.
Mr Forrest said the new National Cabinet approach to decision making has worked well to date in dealing with COVID-19, but the same approach needs to be adopted in relation to the vexed issue of tax reform. The NSW Government has been at the forefront of calling for taxation reform.
The Thodey Report (2020) into NSW-Federal Financial Relations called for the abolition of Stamp Duty and Payroll tax. At a Commonwealth level, the Henry Report (2009) made the same recommendation and has been gathering dust for a decade.
The Urban Taskforce has publicly called for the abolition of stamp duty and its replacement with a broadly based land tax or an extension of the application of the GST.
The GST was supposed to apply to all goods and services, thus creating enough revenue to fully compensate the unemployed, the poor and those on social security benefits as well as enabling the states to get rid of high inefficient taxes like Stamp Duty and payroll tax. The Urban Taskforce said that changes to the Tax system could stimulate the economy and help drive Australia our of recession.
Now is the time for the States and Commonwealth to come together and support: 
<ul>
<li>Progressive phase out of Stamp Duty to be replaced with a broad-based land tax or widening of the GST </li>
<li>Abolition of Payroll Tax </li>
<li>Removal of the additional stamp duty and land tax currently applied to all foreign investors </li>
<li>Broaden and extend the application of HomeBuilder to make it relevant to NSW homes and apartments.</li>
</ul>
TOM FORREST is the Urban Taskforce Chief Executive Officer
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Stamp duty relief is a ‘win-win’ for first home buyers and jobs: Tom Forrest

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Almost 2 months ago the property industry was abuzz with talk of the <a href="/expert-insights/buying/why-axing-stamp-duty-will-help-everyone">removal of stamp duty</a> on property transactions. The NSW Treasurer announced he was seriously contemplating such a move and was being advised by a high-powered advisory board. At the time, no one asked the obvious question – when has any Government voluntarily given up such a significant revenue contributor without replacing it with another way to collect the same amount (if not more) revenue or relying on bracket creep? I cannot recall one time in the last 30 years.

On the 20th anniversary, David Thodey and the NSW Treasurer did a song and dance routine at the <a href="https://www.smh.com.au/politics/federal/nsw-calls-on-other-states-to-back-recession-busting-gst-plan-20200701-p55820?ref=rss&amp;utm_medium=rss&amp;utm_source=rss_feed">National Press Club</a> calling on a broad-based land tax amongst other things.

When you view the public statements since then, it now makes perfect sense.

Since the initial announcement, we have seen numerous kites being flown. The first one in the air was a <a href="https://www.parliament.nsw.gov.au/committees/DBAssets/InquiryOther/Transcript/8810/Additional%20information%20Tenants'%20Union%20of%20NSW%20Land%20tax.pdf">broad-based land tax.</a> From a pure public policy perspective, this isn't such a bad idea and has been around since the late 1800s. There’s only one issue, and that is that in New South Wales there is an unimproved capital valuation regime for all properties – so valuations only relate to land and not improvements. Hence, as it relates to the land alone, a whole range of economic distortions will emerge. 

In addition, when all things are considered a broad-based land tax under the current conditions have the impact of increasing <a href="/guides/top-10-hidden-costs-of-buying-a-house-or-apartment-in-2021">Council rates </a>(it would be levied on a rather similar basis). Raising $9 billion per annum from a broad-based land tax could have the impact of almost doubling local rates.

Other questions also emerge such as, should homeowners that have already paid stamp duty still be liable for new broad-based land tax? If they are liable, then they are being double-taxed – if they are not, the imposition of the new tax may have a lock-in effect and reduce potential revenue collections.

The ACT has started a program to replace stamp duty with a broad-based land tax. The ACT has no private ownership of land and has a 99-year leasehold. The Government is largely responsible for land release and its population is about the size of the Northern Beaches of Sydney. Sure, lessons should be learned but differences should be acknowledged.

By far the scariest proposals are betterment taxes and value capture. This has been the topic du jour of the Sydney Morning Herald (SMH). Many Government agencies are enticed by the prospect of capturing the uplift created by a pen stroke without taking any risk. The SMH reported that the Government could <a href="https://www.smh.com.au/national/nsw/value-capture-adored-by-academics-and-despised-by-developers-its-time-may-have-finally-come-20200604-p54zch">capture 75% of the value uplift.</a> Such methods of taxation are lauded as international best practice. What they fail to mention, is the contention surrounding the drawing of tax increment financing boundaries and the community division it creates in the United States. They also fail to mention the small contributions to the <a href="https://www.crossrail.co.uk/">CrossRail project</a> from value capture as it also included reimbursements for value decrement. Admittedly, value capture did work rather well in Hong Kong with the development of the <a href="http://www.mtr.com.hk/en/customer/tourist/index.php">Mass Transit Railway (MTR)</a> but that was for a discrete and continuous piece of infrastructure where value could be clearly demonstrated.

You don’t replace one <a href="/expert-insights/buying/what-do-we-want-stamp-duty-changes-when-do-we-want-them-now">distortionary tax </a>(stamp duty) with another distortionary tax. There are pros and cons of all proposals. But the trick will be in the design. A broad-based land tax appears the best way to go but it should be levied on the improved capital value of land.  This will incorporate elements of all the taxes discussed and will tax the marginal improvement in value throughout the lifecycle of the development. There is far more work needed by policymakers before we accept the removal of stamp duty as a Trojan Horse. 
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vivian_48447

Beware of Politicians Bearing Gifts – Let’s Start the Stamp Duty Discussion

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The NSW Government will provide stamp duty relief for people who lost their homes during the bushfires and who choose to purchase a replacement home elsewhere rather than rebuild.
People purchasing replacement homes will only begin paying stamp duty once the amount payable exceeds $55,000. Stamp duty will therefore be paid on homes with a value $1.3 million or higher.
Deputy Premier and Minister responsible for Disaster Recovery John Barilaro, and Treasurer Dominic Perrottet, said the latest NSW Government assistance would enable people to get back on their feet and back into a new home faster.
“This is about ensuring people have the ability to buy a home to replace the one destroyed by fire and not have to worry about the substantial cost of stamp duty which can be tens of thousands of dollars,” Mr Barilaro said.
Mr Barilaro said 2448 homes were destroyed during the bushfires, with the Government-funded clean-up now well underway across the State.
Treasurer Dominic Perrottet said the stamp duty relief package would allow people much more flexibility and financial freedom as they made one of their most important decisions in the recovery process.
Information on how to apply for a refund and eligibility requirements will be available from Service NSW and Revenue NSW websites from March 10. Eligible people who have already paid duty will be able to apply for a refund.
HIA applauded the NSW Government for this decision.
“The Housing industry Association (HIA) welcomes the NSW governments announcement it will provide stamp duty relief for those people who have been directly impacted by the tragic bushfires that have swept across the state”, Executive Director NSW HIA David Bare said.
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NSW Government providing stamp duty relief for homes lost in bushfires

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Placing an offer on your dream home is an exciting process, especially if you’re a first home buyer. As with any significant purchase, doing thorough research is vital before putting your pen to paper, and having a greater understanding of the buying process could help boost your confidence and bargaining power.

In this article, you’ll learn more about:

<ol>
<li>Considerations for getting your finances in order</li>
	<li>Due diligence you could consider undertaking</li>
	<li>The different sale types in the market</li>
	<li>The pros and cons of unconditional vs conditional sales</li>
	<li>How to determine how much you should offer</li>
	<li>Tips to help you place your offer with confidence</li>
</ol>
<h2>1. Getting your finances in order </h2>

Firstly, it is important to determine your budget from the outset before you place an offer on a property. This will help mitigate issues such as offering too much for a home you can’t afford or taking on a mortgage you are unable to service. If you’re a first home buyer, it could also be a good idea to research whether <a href="/guides/how-to-navigate-australias-first-home-buyer-grants"><ins cite="mailto:Shay%20Waraker" datetime="2019-10-21T10:30">any government grants</ins></a> may apply to you.

In the current Australian property market, a minimum deposit on a house can cost anywhere from 5% to 20% of the sale price. You will also need to factor in additional fees such as legal costs, building reports and Stamp Duty*. <a href="http://www.canstar.com.au/home-loans/what-are-the-real-costs-of-buying-a-house/">Additional costs</a> will vary from buyer to buyer, so it is best to consult with a property lawyer about which ones apply to you.

[smartcode_project:default project_id=28314]

*Stamp Duty is the tax associated with buying property in Australia. If you’re looking to purchase a new apartment which will be your primary residence, then you may be eligible for an off-the-plan stamp duty concession. While Stamp Duty concession policies vary state to state, the concept generally means that the duty you’re required to pay on the property you’re purchasing is heavily subsidised to account for construction costs.

For example, if you were looking to purchase a $500,000 off-the-plan apartment, but $400,000 of that is to be spent on construction costs, the dutiable value of your home would be $100,000*.

Once you’ve got a budget in mind, if you’re going to require a home loan then you’ll need to decide whether you would like to opt for a fixed rate or variable rate loan. A fixed rate is where the interest rate remains stable for a certain period of time. This can provide you with more certainty and enable you to set up an automatic payment to make weekly or monthly payments of the fixed rate.

However, a variable rate means that as interest rates fluctuate, so does your repayment rate. This option is more unpredictable, with the potential for your rate to increase or decrease depending on the market.

There are also two ways you may be able to pay your loan.

<ol>
<li>
Principal + interest loan: This type of loan will mean you are paying both the principal (the amount you borrowed to purchase the property) and interest at the same time.</li>
	<li>
Interest-only loan: Interest-only loans can reduce the amount you pay weekly, but keep in mind you will only be paying the interest, without contributing towards the principal.</li>
</ol>
If you are unsure which repayment type suits you, it could pay to seek the help of a financial advisor.

You may also choose to apply for <a href="https://www.canstar.com.au/home-loans/get-home-loan-pre-approval/">home loan pre-approval</a>, which could be a useful way to understand how much you are eligible to borrow from a lender.

<h2>2. Undertaking thorough due diligence </h2>

Due diligence is the research required prior to placing an offer to check whether the property is a good investment for you. Due diligence is undertaken throughout many stages of the buying process, but before you make an offer, it can help you to determine if the property has been constructed to a high standard, using safe and healthy building materials – as well as a tool for deciding what the property may be worth. There are a number of things <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">to look out for</a>, and some of the key due diligence research can include:

<ul>
<li>When considering buying an off-the-plan property, investigate the track records of developers by running a background check online and reading news articles. It could also be a good idea to consult property industry experts (such as town planners, master builders and environmental consultants) to ask for honest opinions of the quality of work produced by the developer. Another option is to arrange a meeting with buyers of the developer’s previous developments via the sales agent, to discuss whether they’re happy with their home and if it was completed on time.</li>
	<li>Research the suburb where the property is located including checking crime rates, public transport options, planned infrastructure, property value increases/decreases over time and local schools. These factors will impact the overall liveability, safety and value of the property.</li>
	<li>Research the architect and builder responsible for the home. Consider their credibility and visit their completed developments to assess whether you’re happy with the quality of their work.</li>
	<li>Acquire all supporting documents for the property you’re interested in and read through them with a fine-tooth comb.</li>
	<li>Study the minutes from past strata/body corporate meetings and find out what will be required from you time-wise and financially as a resident if buying into an owner’s corporation*</li>
	<li>Find out whether the property has a heritage overlay and what renovations and modifications you are allowed to make to the property</li>
	<li>Take a look at Geospatial data (known as GIS maps) to identify any risks posed by sea level rising; property boundaries; the location of water, sewer and stormwater services; and more.</li>
</ul>
[smartcode_project:default project_id=29329]

*An owner’s corporation applies to shared residences where financial decisions need to be made for collective maintenance projects. 

When you’re ready to place an offer 

<ul>
<li>Consult with a conveyancing lawyer who will outline your rights and obligations</li>
	<li>Find out how the sunset clause* could be enacted in your state and whether you’re protected against loss of finances and/or the off-the-plan property you’re purchasing</li>
	<li>Find out what your rights are if your off-the-plan property is not delivered on time</li>
	<li>Ask how you will connect your property to utility services</li>
</ul>
*The Sunset Clause is essentially the ‘expiry date’ of an off-the-plan development which gives both the developer and buyer the opportunity to dissolve a contract if the building has not been completed on time.

Getting your offer contract drawn up by a conveyancing lawyer

An offer placed on a property is a legally binding contract, so by engaging a lawyer in the process will help to mitigate any miscommunication within the agreement. A specialised conveyancing lawyer can also help you negotiate the best deal. For example, your lawyer may suggest including a clause which highlights that you will not proceed with the sale should the property fail any inspections undertaken by a master builder or surveyor. This could include issues surrounding soil contamination, asbestos, structural issues and more.

<h2>3. Understanding the different sale types </h2>

TENDER 

A tender is often considered a silent auction where prospective buyers will submit an expression of interest offer in writing to the real estate agent, at a value they believe the property is worth. There is no suggested sale price apart from a capital value* to work from, but this is a good way for the vendor to assess how much the market is prepared to pay for their home – to which they can accept, provide a counter offer or decline.

*A capital value or CV is the recommended house and land value provided by a property valuer. If the valuation has been carried out over a year ago, it is worth engaging in a re-evaluation as the property market is constantly shifting, and house prices fluctuate.

SALE BY NEGOTIATION/PRIVATE TREATY 

Sale by negotiation or a private treaty is where the vendor sets the price, and prospective buyers will either make an offer or provide a counter offer. If a subsequent counter offer is provided by the vendor, the buyer may engage in a bartering process so both parties reach a sale price and agreement that they are both happy with.

[smartcode_project:default project_id=27839]

This sale type is often a longer process due to there being no set sale date, giving the vendor more time to settle on an offer they are comfortable accepting.

AUCTION 

The auction process is simple – prospective buyers bid in a competitive environment, with the highest bidder often winning the property on the day if the reserve price is met. In some instances, interested buyers may place an early offer before auction day in an effort to secure the property before it goes to auction. In Australia, auction clearance rates are high, meaning many properties will sell on auction day, rather than progress to a tender.

BALLOTS 

If there is high demand for an <a href="/new-apartments">off-the-plan apartment</a> a waitlist ballot could be created. Interested buyers can enter the ballot, and if their name is chosen at random, then they will be given the opportunity to purchase an apartment at a fixed price.

What do all three sale types have in common? Offers are made via a written contract

A contract offer can either be prepared by the buyer or the buyer’s lawyer. This is a legal document which states the amount the buyer is prepared to pay for the property and includes any conditions that need to be delivered in order for the sale to be finalised. It is encouraged that all offers are drafted with the help of a legal professional in order to help protect you against any unforeseen problems such as any hidden fees, unknown building rectification costs or any other issues that could arise between placing your offer to settlement and beyond.  

4. The difference between unconditional vs conditional sales 

Generally, when you make an offer, you can choose whether your offer is conditional or unconditional. This will generally depend on your circumstances and the property you are purchasing. Sometimes unconditional offers can be a more desirable option for vendors as they can result in a quicker, more seamless sale, however conditional sales can give the buyer the chance to negotiate a better deal.

A Conditional Sale is exactly as the name suggests – a sale with conditions attached. These could include (but not limited to):

<ul>
<li>Buyer’s finance is subject to approval</li>
	<li>Building/pest inspections still to be conducted</li>
	<li>The sale of buyer’s current home to be completed without any complications</li>
	<li>A certain fixture or fitting needs replacing</li>
	<li>The house needs to be professionally cleaned</li>
</ul>
Pros of conditional sale: 

<ul>
<li>If there are aspects of the home which need fixing, changing or even upgrading, buyers may include this in the conditions of sale. If the offer is accepted the vendor must honour these conditions before the buyer takes ownership of the property.</li>
	<li>Less risk involved if the buyer wishes to withdraw their offer, as a clause can be written to provide 14 to 21 days to finalise their decision about the purchase.</li>
</ul>
Cons of conditional sale: 

<ul>
<li>A conditional sale can span across a longer period of time while the buyer secures finance, which could result in the vendor accepting an unconditional offer if they’re looking for a quick transaction</li>
	<li>Unrealistic demands in your conditions may lead vendor to accept another offer</li>
</ul>
[smartcode_project:default project_id=29171]

An Unconditional Sale means that the buyer is willing to accept the property in its current state and can sometimes secure the home for a lower price point because of this. The buyer will have already secured approval for a home loan and has the deposit ready for immediate finalisation of the sale. It is a good idea to consult with a conveyancing lawyer and a registered builder/building inspector before opting for an unconditional sale, as there may be unforeseen issues with the property that might outweigh the savings you made from the sale. While it is imperative that the vendor’s agent discloses all issues present within the building – it is also important to do your own due diligence.

Pros of unconditional sale: 

<ul>
<li>An unconditional offer provides security for the vendor and therefore is more likely to be chosen preferentially over a conditional offer of a similar value.</li>
	<li>Since finance is already secured, buyers are able to place their highest bid with confidence.</li>
</ul>
Cons of unconditional sale: 

<ul>
<li>No longer able to back out of a contract</li>
	<li>The buyer may overvalue the property if making a hasty offer and won’t be able to change it</li>
	<li>If home loan finance is not approved, the buyer may have to forfeit their deposit</li>
</ul>
<h2>5. Deciding how much you should offer </h2>

You’ve got your budget in mind, you’ve accounted for additional upfront costs, now it’s time to decide whether you can comfortably service your mortgage. A great way to figure out your weekly or monthly repayments is by using a comprehensive mortgage calculator. This will factor in your deposit paid, interest, and home loan rate.

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CASE STUDY: 

NAB have set their principal and interest home loan rate at 4.92% per annum. If a buyer was to borrow $500,000 then their weekly repayments would be $613 p/w over a 30-year term. If the buyer was to borrow an additional $50,000, then this amount would increase to $675 p/w (a difference of $62 p/w).

When determining the price-point of your offer, some factors you may want to consider include how much you believe the property is worth based on market value, the condition of the home and your how attached you are to it. To gauge how much other listing in the area are selling for, you can research market values online, visit open homes in the area and speak with the real estate agents and sign up to mortgage brokering newsletters to stay informed about market trends. But ultimately, you’ve got to be happy with the property and comfortable with price based on your budget.

Depending on the type of sale you’re engaging in, you can generally place a low-ball offer, and have it either accepted or receive a counter offer from the vendor. However, if you’ve found the dream house and have the funds to pay your allocated amount for it, sometimes offering a decent price will avoid the risk of losing the property to a higher bidder if the vendor is looking for a quick sale.

6. Top tips when making an offer 

Know your budget before auction day 

Auctions are generally a high-pressure environment, which may lead some buyers to spend more than they initially intended, however attending an auction with a clear budget in mind is the best way to ensure you don’t exceed your spending capacity.

Seek loan pre-approval 

By securing your home loan before making an offer, your bid will have a stronger chance of being accepted as this provides more certainty to the vendor that you will be able to access the funds.

Have a contingency clause written up 

Worried you’ll get cold feet about the purchase? You can have your conveyancing lawyer write up a contingency clause – a legal document which generally accompanies your offer and is personalised to your requirements. For example, it might allow you 14 days to view the property again before the contract becomes binding. This will give you time to confirm your decision.

Triple check your conditions of sale 

If you’re asking the landlord to fix a window, but also want the property for $10,000 lower than the asking price – you might want to reassess your priorities. Consider the cost of your conditions versus the price you’re offering as the more conditions you can address yourself (and the shorter your list of requests) the more likely the vendor will be to take your offer over someone else's.

Include a personal letter 

Finally, you may like to include a personal letter to the vendor, sharing some background information about yourself and why you have chosen their property. Perhaps you love the house for its Victorian ceiling roses that have been so meticulously restored, or maybe you’re a young family with kids who are going to attend the school nearby. There can be a lot of emotional attachment for both parties when negotiating the sale of a house, so it can be helpful if the vendor is reassured that the property will be going to someone who will appreciate it.
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Olivia Round

Step-by-step guide to placing an offer on a house

One of the many great cost benefits of buying off-the-plan is the ability to save on stamp duty fees. Many home buyers have saved thousands by purchasing a new-build home that meets their state’s concession criteria. In this guide, our aim is to help answer all your stamp duty questions and help you identify whether you could be eligible for a concession when you buy your new off-the-plan home.

Firstly, do you pay stamp duty if you buy off-the-plan?

Stamp duty is a mandatory cost associated with purchasing property in Australia. However, because an off-the-plan property is a ‘new build’, buyers may be able to reduce the cost of their stamp duty fees or dissolve the cost entirely. Special rules can also apply to <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">first home buyers</a>, pensioners, and owner-occupiers. To find out which rules apply to you, read on, or check your <a href="#Source">state's revenue website</a>.

When is stamp duty payable on off the plan purchases?

Stamp duty is the taxable amount charged by the State Government for particular transactions including selling assets such as property. This is generally paid to the state revenue office before lodging the title transfer.&nbsp;

How to calculate off the plan stamp duty&nbsp;

Calculating stamp duty varies from state to state and depends on whether you're intending on living in your home or renting it out, as well as the market value of the property. You can use a <a href="https://exactly.net.au/calculators/stamp-duty-calculator/">Stamp Duty Calculator</a> to figure out home much you would be likely to pay for the apartment or townhouse you're interested in. Just bear in mind that you could also be eligible for one of the many concessions available.&nbsp;

How much can you save with off-the-plan concession?

To assist you with your home buying journey, here is a&nbsp;state-by-state guide to understanding some of the concession laws in your city*.

*For an in-depth break down of rules and regulations, visit your state's revenue website.

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<h2>VICTORIA</h2>

<ul>
	<li>You must pay the market value for your property. If the contract price is lower than the market rate, then you will not be eligible for the concession.</li>
	<li>You must be eligible for the principal place of residence concession or the first home buyer duty exemption or concession.</li>
	<li>Ineligible <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Buyer Grant</a> applications (who bought property for $750,000 or more) may still be eligible for the off-the-plan concession.</li>
	<li>All purchasers must be over 18, with the exception of purchasers who are the guardian of a person with a legal disability.</li>
	<li>Stamp Duty concessions are not available to company or trustee purchasers.</li>
	<li>At least one buyer must live in the property for at least 12 months from 12 months after settlement/acquisition of the property.</li>
	<li>For contracts signed before 1 July 2017, if you live at the property, you purchased you may be eligible for the principal place of residence duty concession if the dutiable value of your home is $550,000 or less (after adding the off-the-plan concession to your contract price).</li>
</ul>

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<h2>QUEENSLAND</h2>

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<ul>
	<li>Home concession is available to buyers when buying a second home</li>
	<li>First home concession is available to first home buyers and is a considerable saving, and sometimes can result in the buyer paying no stamp duty</li>
	<li>First home vacant land concession is a rebate given to those buying bare land to build their first home</li>
	<li>First home buyers can claim both a <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owners’ Grant</a> and First Home Buyer Concession if applicable</li>
</ul>

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<h2>NEW SOUTH WALES</h2>

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<ul>
	<li>Stamp duty will either be abolished or reduced for first home buyers</li>
	<li>First home buyers may be eligible to <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">receive a grant</a> of up to $10,000</li>
	<li>To qualify for the first home buyer concession, you must be buying your first property (including land) valued at less than $800,000</li>
	<li>Homes must be new and not previously lived in</li>
</ul>

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<h2>AUSTRALIAN CAPITAL TERRITORY</h2>

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<ul>
	<li>Deferred duty: If you’re eligible for the <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owner Grant</a> (FHOG), or the Home Buyer Concession Scheme (HBCS) and the duty amount is $1,000 or more, then you may wish to defer your payment</li>
	<li>Pensioner duty scheme: An eligible pensioner who own a residential property and is moving to a home more suitable for their needs (e.g. A townhome), they may be able to reduce the cost of stamp duty payable</li>
</ul>

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<h2>NORTHERN TERRITORY</h2>

<ul>
	<li>Principal Place of Residence Rebate: You may be entitled to receive a rebate of up to $7,000 for any stamp duty paid on a home that is your principal place of residence, that you haven’t claimed a first homeowner discount or grant on</li>
	<li>Seniors, Pensioners and Carers: A stamp duty concession of up to $10,000, so long as one purchaser is over 60 years old and a holder of an NT Pensioner and Carer Concession Card</li>
	<li><a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owner Discount</a>: A stamp duty concession is available to purchasers of new and existing homes.</li>
	<li>Zero stamp duty is available to first home buyers of a home priced up to $500,000</li>
	<li>A general stamp duty discount of $23,928.60 will be available to first home buyers</li>
</ul>

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<h2>TASMANIA</h2>

<ul>
	<li>A 50% concession may be available to <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">first home buyers</a> of an old home valued at under $400,000</li>
	<li>A 50% concession could be available to pensioners who sell their former home in Tasmania and downsizes to a new home in Tasmania valued at $400,000 or lower</li>
	<li>These offers are currently only available between the period of 7th Feb 2018 to 30th June 2020 (inclusive)</li>
	<li>Duty exceptions can also be available when a home is transferred from a person to their partner</li>
</ul>

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<h2>SOUTH AUSTRALIA</h2>

<ul>
	<li>According to the Revenue South Australia website, the off-the-plan concession no longer applies to contracts entered on or after 1 July 2018</li>
</ul>

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<a href="" id="Source" name="Source">Sources</a>:&nbsp;<a href="https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-concession-scheme">ACT Revenue Office</a>&nbsp;| <a href="https://www.sro.vic.gov.au/first-home-owner">State Revenue Office Victoria</a> | <a href="https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/transfer-duty-concessions-exemptions">Queensland Government</a> | <a href="https://www.sro.tas.gov.au/property-transfer-duties/concessions-and-exemptions-for-property-transfer-duties/duty-concession-for-pensioners-downsizing-to-a-new-home">Tasmanian Government</a> | <a href="https://www.revenuesa.sa.gov.au/grants-and-concessions/off-the-plan-concession">Revenue South Australia</a>

Disclaimer: While Urban strives to provide accurate content,&nbsp;we do advise that readers undertake their own research and to only use our findings as a guide.&nbsp;

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