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What Is the QBCC Home Warranty Insurance Premium?

The QBCC (Queensland Building and Construction Commission) home warranty insurance is a premium paid to insure the construction work of a residential building or renovation project. A premium refers to the amount of money paid for an insurance policy to cover a variety of risks. For the QBCC home warranty insurance, the premium amount must be paid before work begins by your contractor (who collects the money from you). Any residential construction work valued over $3,300 is required to pay the QBCC Home Warranty Insurance Premium. Understanding the QBCC Home Warranty Insurance Premium is essential if you're building or renovating in Queensland. Know what you’re really covered for and how to avoid any penalties. What’s covered under the QBCC Home Warranty Insurance Premium? The QBCC Home Warranty Insurance Premium covers the homeowner in the event of something going wrong during the building process – generally if the project is unfinished, has defects, or if the contractor disappears or passes away. You must lodge a non-completion claim if your contractor does not or can not finish the work you contracted them to do or if your contractor does not fix defects. This claim must be lodged within 3 months after the contract ends. If the QBCC accepts your claim and the building project is damaged by fire, storm, vandalism, or theft, or if the building suffers from subsidence or settlement – the claim can still be liable. Once the QBCC pays the claim, they will attempt to recover the amount they paid to finish or fix the project from the contractor. The QBCC Insurance is attached to the property for 6 years and 6 months from when the contract is signed or from when the premium is paid, even if the property is sold. This means that non-structural defects are still covered by the QBCC 6 years and 6 months after the construction work is completed even if homeowners change. How much is the QBCC Home Warranty Insurance Premium? The QBCC Home Warranty Insurance Premium cost is calculated by adding the value of materials, labour, GST, and includes any associated work in your contract. Associated work can include landscaping, driveways, fences, retaining walls, hot water systems, security doors, or air conditioning. The Home Warranty Premium is paid for projects valued over $3,300, with the QBCC premium increasing in $1,000 increments over this $3,300 threshold. For example, a project with an insurable value of $4,000 must pay a premium of $214.85 and a $5,000 project is required to pay a premium of $222.00. Projects that are valued more than $150,000 must pay a QLeave Levy in addition to the Home Warranty Premium. The QLeave Levy is a portable long service leave scheme required for all construction work in Queensland. Who pays the QBCC Home Warranty Insurance Premium? The licensed builder contracted for the project must pay the QBCC premium. The premium amount is included in the contract price, so your contractor will collect the premium amount from you and pay it on your behalf – protecting the project from defective or incomplete work and ensure commitment to the contract. If your project requires additional insurance after the standard premium is paid, you can pay it yourself without going through your contractor as the homeowner. Additional cover must be paid either within 30 business days of the contract start day or before any work is done – whichever is earlier. The QBCC Home Warranty Insurance begins once the premium is paid, the contract is signed, or when any construction work begins. What happens if the QBCC Home Warranty Insurance Premium is not paid? If your residential construction project is valued over $3,300 and you haven’t paid the QBCC Home Warranty Insurance Premium before any work begins – your contractor can face penalties. It is your contractor’s responsibility to calculate the QBCC premium and pay it to the QBCC – so if the premium is not paid, the contractor will face the penalties, not the homeowner. Penalties for not paying the QBCC premium include fines, demerit points, a suspended or cancelled licence, or a public record of their offences and demerit points. In the case where the contract isn’t documented properly or the contract does not have a written agreement by the homeowner – penalties can also apply. As a homeowner, you are entitled to a “cooling-off” period which allows you to withdraw from the contract within this time. If the contractor does not comply with documenting the project properly, the “cooling-off” period can be extended up to 6 months. Navigate the QBCC Home Warranty Insurance Premium with John Munro Builders John Munro Builders specialises in building new homes, renovations, home extensions, and luxury properties in Townsville. Our multi-award winning team of builders understand the ins and outs of the QBCC Home Warranty Insurance Premium. We can help you obtain the QBCC Insurance and help you know what you’re covered for. If you’re building or renovating a home in Townsville, contact the friendly team at John Munro Builders to get started.

Is Townsville a Good Place to Invest in Property?

The city of Townsville is located on the north-eastern coast of Queensland, Australia, renowned for its stunning beaches, close proximity to the Great Barrier Reef, and combination of a tropical lifestyle and city comforts. With the strong and stable rental demand, resilient economy, and increasing population – it’s not just us that are biased – Townsville has proven itself as a strong investment opportunity for property. Townsville Demographics Overview The population of Townsville is 234,283 (ABS, 2021). Local residents are 50% female and 50% men, with the median age being 37. Townsville is home to a diverse community of cultures and is full of young professionals and families who enjoy both city life and coastal living. A Look at Townsville’s Real Estate Market A Look at Townsville’s Real Estate Market Median house price: $524,000 (+28.79% since November 2023) Median house rent: $520 per week (+10.6% since September 2023) House rental yield: 4.72% Median unit price: $365,000 (+19.45% since November 2023) Median unit rent: $400 per week (+12.6% since September 2023) Unit Rental yield: 6.13% Number of private dwellings: 83,238 (ABS, 2021) Reasons to Invest in Townsville Property Persistent Economy Townville has experienced various cycles of economic uncertainties – however, thanks to its diversified economy, the city always bounces back. With Townsville positioning itself as a major logistics and defence hub, there are stable employment opportunities in areas like agriculture, mining, and defence. The economy also benefits from the strategic location of Townsville. A gateway to the Asia-Pacific region, Townsville plays a critical role in facilitating international trade opportunities for businesses and investors alike. Strong Rental Demand With a growing population and an increasing number of people relocating to the city – the rental demand is strong in Townsville. The average rental yield for a unit in Australia is 3.96%, whereas Townsville has an appealing rental yield for a unit of 6.18% – giving investors great opportunities for steady rental income. Future Development As the population grows, so does Townsville. The City of Townsville Council is continuously looking to develop the region’s future by capitalising on its strategic location, showcasing access to skilled workforce, and upgrading infrastructure and amenities. A current project underway is the North Queensland Simulation Park (NQ Spark). Benefiting Townsville’s economy, the NQ Spark will develop defence and research capability to develop Defence and Science Industry presence – providing high paying employment opportunities. Access to Education and Healthcare Townsville offers access to a variety of market leading health amenities and services, as well as world class education facilities. Access to high quality key facilities like healthcare and education, adds value to the properties in the area for many home buyers and renters – therefore, it’s important for property investors to take this factor into consideration. Investing in Townsville Townsville is amongst the fastest growing regions in Queensland. For buyers and would-be investors looking to stake their claim, 2025 is an ideal time to get into the local market. For those looking to buy and build, John Munro Home Builders Townsville can help you to build your perfect home.

Costs to Build a New Home in Townsville - 2025 Guide

With Townsville being one of the fastest-growing regional cities in Queensland, it’s no surprise that more families and professionals are choosing to make North Queensland their new home. With ample land for development, Townsville is a prime location for future homeowners who are looking to build their dream home — but just how much will it cost? We’ve done the research across the essential costs involved with building a new home in Townsville in 2025. Read on to learn more about creating a budget for the costs of construction, buying land, and more. Average new home build cost in Townsville The average cost of a new home build in Townsville varies between $1,600 and $2,500 per m2. More complex or larger home designs will drive the building costs, while simpler or more basic building designs will reduce costs involved. For the construction of a standard 4-bedroom home with an estimated size of 250m2, the overall cost involved will generally start from $625,000. Additional furnishings or the inclusion of customised designs can increase the cost of the build to $750,000 or higher. Comparing building and buying costs for homes in Townsville So, how does the cost of building a new home in Townsville compare to buying an existing home? According to data from CoreLogic, the median price for a home in Townsville during Q4 of 2024 was $512,452. House prices in Townsville have surged over the previous 12 months by almost 25% to reach this value, and it’s likely to have risen since. Despite the difference in cost between a new home build and an existing home in Townsville of over $100,000, the huge advantages of having a home built exactly to your preferences are hard to put a price on. New homes in Queensland will also be covered by builder’s insurance, providing quality assurance for new homeowners for up to the first 7 years. Costs for building a home in Townsville When budgeting for a new home build in Townsville, homeowners should be aware of the key costs that must be factored in — these include the cost of permits for the build, the cost of the land, and the construction work itself. Building approval cost All new home constructions in Townsville must obtain building approval with the local city council before any work can begin. While builders usually handle the application of building approval on behalf of homeowners, it’s worth understanding that there are a set of application fees involved in the process that can amount to several hundreds of dollars. Building design cost The design of the new home build will affect the overall cost. Intricate designs for a two-storey home will naturally incur more cost due to the required expertise of building designers or architects. Cost of land Land costs in Townsville can vary greatly based on factors such as their size, orientation, and proximity to the CBD and modern amenities. Buying the land for a new home build can make up a substantial amount of the overall cost, which is why more and more homeowners are opting for house and land packages where the cost of both the property and land are included in the package. Building material costs Building materials will typically make up to 45% of the total cost of the new home build. Supply shortages for home building materials have driven up costs in recent years post-pandemic, with house construction prices rising by 40.8% from September 2020 to June 2024. Construction costs The construction work itself will also form a major portion of the cost of the home build. Each builder charges differently for labour and services, which is why future homeowners need to choose a local builder that can deliver the best quality home build without breaking the bank. Leveraging 20 years of building quality homes for residents in Townsville, our team at John Munro Builder can help you create a dream home that perfectly fits both your budget and your preferences. We can walk you through all of the costs involved for a new build in Townsville upfront so that you don’t have to worry about going past your budget. Contact us today to learn more, or view our available collection of house and land packages in Townsville.

Pros and Cons of New Homes as Property Investments

There are significant benefits of using a new home as a property investment. New homes as property investments eliminate many of the issues that are common to investing in older properties (maintenance and repairs) - but they are not without considerations that can affect returns in the short term. Whether you’re a first-time investor or looking to add to your existing portfolio, here’s what you need to know about choosing a new home for investment. How does a new home work as an investment property? Buying a newly built residential property for the purpose of investment works the same way as purchasing an existing property. Investors who purchase a new home for investment can lease out the property (once it is built) to prospective tenants in exchange for a consistent supply of rental income. On top of the expected gains from renting out a new home, there are other concessions that a new home can offer over an existing property. Namely, the exemption from payable stamp duty on the value of the home, as well as a period of warranty covering any issues in the first seven years. New homes in developing regions also have the potential to appreciate over a long term as the improvements in local infrastructure (e.g. roads) and increased accessibility to amenities (e.g. schools, medical facilities) are put into place. A new home investment is possible through: House and land package – both the property and the land it sits on are purchased together in the same package. The new home’s design can be chosen from a selection of options from different builders, based on personal preferences and investment goals. Some builders offer investors help in finding potential tenants to occupy the home once complete. Building a new home – investment funds will be used to finance the cost of building the new home. Investors work with building designer or architect to shape the future property according to their vision. Off-the-plan properties – similar to house and land packages, but with a lower level of customisation and no requirement for a construction loan. Investors are only required to pay the deposit upfront and the outstanding amount once the property is complete. Pros of purchasing a new home build for investment Low maintenance costs New home builds are new, which means little to no maintenance required within the first few years following completion! Attractive to tenants New homes are ideal for tenants – they are easier to keep clean, maintain, and offer new and advanced appliances. The average new home is also more energy efficient than older homes. A recent CSIRO study found that newly built homes featured up to 50% more airtightness compared to homes tested in 2015, which contributes to a lower need for heating or cooling appliances to keep the home comfortable. New home builds also typically feature modern home layouts and designs which drive up demand among those looking to rent, offering a higher potential for a favourable rental yield. Lower cost of investment Investing in a new home build allows buyers to save on the dutiable costs usually associated with buying a property. Stamp duty for a new home build (like with a house and land package) is often only payable on the cost of the land. There are also opportunities to claim tax deductions for a new investment property home build. Depending on the value and state of the newly built property, investors can claim depreciation on internal fixtures and fittings down the line, which result in cost savings. Opportunity for customisation A new home build presents a blank slate, giving investors more control and freedom over the type of property they want to have for investment. Considerations for investing in a new home build Time for construction and tenancy Building a new house will require a construction period before it can start to deliver returning value. Estimated timelines for new home builds are between 6-12 months, during which the investment will not “perform”. There’s also a consideration for the time it takes to find tenants to occupy the home after it has been completed. New home build investments in developing regions For investors looking to maximise the long-term value of their new home build with significant capital growth, regional and developing areas offer prime potential. New homes in developing communities feature lower initial costs that have a huge potential to grow along with the region. Take Townsville, North QLD for instance — since 2020, it has had a consistently low vacancy rate of under 1%, signalling a huge need for new homes. The Townsville Council has been actively pushing for the development of new housing, with over 2,000 additional lots being approved for residential development. Naturally, this presents investors with a unique opportunity to invest in a new home build in the rapidly expanding city.

What the QLD 7-Year Building Warranty Means for Buyers

The building process of a new home is a huge undertaking that involves months of work. Like with any construction work, the sheer number of factors involved in the building work can sometimes result in unexpected issues with the quality of the build, depending on who you work with. For those looking to buy or build a new home in QLD, the QBCC Home Warranty Scheme provides more reassurance by covering any potential issues that may arise with a newly built property. With 7 years of building warranty, buyers can have greater confidence in the quality and value of their newly purchased home. What is building warranty in QLD? The Queensland Building and Construction Commission Act (QBCC) Home Warranty Scheme was put in place by the QLD Government to protect homeowners from the risks of defective building work regarding their new home or building project. Under this building warranty scheme, any building work valued over $3,300 will be covered by home warranty insurance that is paid for by the builder. In the event of any defective work (defined as work that is unsatisfactory, flawed, subpar, and/or faulty) in the property, homeowners will be able to submit a claim to have the relevant issues addressed at no additional cost. In Queensland, building warranty covers new home builds for a period of 6 years, 6 months from the date when work according to a signed contract begins. However, claims for defective work must be lodged within a specific time period after the defect has been noticed. Claims regarding structural defects of the property must be lodged within 3 months of noticing the defect. Examples of structural defects include cracks or shifting in the structural elements of the building such as the foundation, walls, roofs, or support beams. Claims regarding non-structural defects of the property must be lodged within 7 months of the day the work is completed. Non-structural defects include issues such as cracked or peeling paint, improper seals on windows or doors, as well as plumbing and electrical issues. Benefits of building warranty QLD Building warranty offers huge advantages for individuals looking to buy a new home or build one: Financial coverage The substantial costs associated with buying or building a home often place a financial burden on buyers. The coverage of building warranty means that buyers will not have to worry about being liable for any additional expenses that may be incurred to resolve issues in the home — these costs will be covered during the 7-year building warranty period. This is especially important for structural issues, as the building work required to fix these issues can be extensive and expensive. Assurance of quality The building warranty provides buyers will more confidence in the quality of newly built homes as builders of the project will be required to adhere to the strict quality standards of the Queensland Building and Construction Commission. This also goes a long way in ensuring the value of the built homes against unexpected future issues. Legal protection Disputes between homeowners and builders regarding the quality of the home build are not uncommon. Building warranty helps to protect buyers by giving them an avenue to claim for repairs or rectification of defective work. It provides homeowners with legal and financial protection if the builder fails to meet the agreed standards or if major structural or non-structural defects arise. As award-winning home builders in Townsville, John Munro Builder is pleased to offer quality new home builds to future homeowners in QLD that are covered under the QBCC Home Warranty Scheme. With over 20 years of delivering beautiful and functional homes for the Townsville community, we are committed to helping you build the home of your dreams.

What Is a Good Energy Rating for a Home?

If you’re planning to build a new home, you’ll no doubt have come across home energy ratings as part of the planning process and wondered what a ‘good’ home energy rating means. With the recent update to Australia’s National Construction Code (NCC) requiring all newly built homes to meet the minimum requirement of a 7-star energy rating, it is important for those looking to build a home to be aware of what to include in their future property in terms of energy efficiency. So, what does it mean to have a good home energy rating, and how is it measured? Let’s dive into the specifics, from the building elements that contribute to a home energy rating, to the benefits of a ‘good’ rating. What is considered a ‘good’ energy rating for a home? All new home builds in Australia have to meet the required minimum 7-star energy rating as part of the nationwide initiative to increase the quality of future home builds. A ‘good’ home energy rating generally refers to a star rating of 7 to 10 on the Nationwide House Energy Rating Scheme (NatHERS) home energy rating scale. The star rating system provides potential homeowners and builders with a simple way to determine how energy-efficient the planned home build will be upon completion. This star rating system follows a consistent assessment standard that covers different types and sizes of home builds in various climates and regions across Australia. How are home energy ratings assessed? Home energy ratings reflect how much external heating or cooling appliances will be needed to keep the home at a comfortable temperature - the higher the home energy rating, the lower the need for artificial heating or cooling in the home. Home energy ratings are assessed through a systematic process: An accredited NatHERS assessor will be provided with the design, layout, building materials, and location. All of this data will be processed through specialised software that runs simulations to analyse the thermal performance under different climate conditions, especially those that are common to the proposed location. A star rating will be determined based on these results, with higher star ratings representing better energy efficiency and a more comfortable home environment. This rating will then be presented to the prospective homeowners as an accurate estimate of the home’s thermal performance. Building factors that improve energy ratings for a home The home’s energy rating can often be improved with the use of certain building elements and materials, including: High-quality insulation - insulating walls, roofs, and floors to reduce the transfer of heat to and from inside the home. Window glazing - using double or triple glazing, as well as low emissivity (low-E) glass. Shading - incorporating easings and awning to block excessive solar heat High thermal performance materials - including concrete, brick, stone, and tiles in building construction. Optimal home orientation - positioning the home to maximise natural light and heat from the sun. Natural ventilation - including windows, vents, and fans, as well as the layout of the home that promotes good airflow and consistent indoor air quality. Energy-efficient lighting - using LED lighting to minimise energy consumption. Benefits of achieving a good home energy rating Building an energy-efficient home with a good star energy star rating awards homeowners with a high-quality living environment that holds multiple benefits: Lower energy bills due to decreased reliance on heating and cooling appliances. A consistently comfortable living environment throughout the year, regardless of the season. Reduced greenhouse gas emissions, promoting environmental sustainability. As highly-awarded home builders in Townsville, John Munro Builder offers future homeowners a collection of home designs that all meet the required 7-star energy rating. We can work closely with you to include design features that enhance the energy efficiency of your future home.