FAQ

General Questions

What is the Nightingale Model?

The Nightingale model is a set of systems and processes for housing provision. The model exists to enables licensed architects to develop Nightingale buildings using the learnings of architects who have previously developed Nightingale buildings.

It aims to deliver sustainable, affordable, livable homes that connect its residents with the community and has been developed for use by architects and others to deliver triple bottom line apartments at cost.

The model is a replicable platform conceived in Melbourne by Breathe Architecture with the help of Architecture Architecture, Austin Maynard Architects, Clare Cousins Architects, MRTN Architects, Six Degrees Architects and Wolveridge Architects with the support of the Robin Boyd foundation.

How do I register my interest in purchasing?

Go to the purchaser page on the Nightingale website and fill in the form to register your interest. This then records you as a potential purchaser, noting the geographical area you are interested in. When a project becomes ‘live’ in the area you have nominated, you will be notified via email and invited to attend an information session to learn more about the project.

Are there any apartments available now?

As most Nightingale projects are fully balloted it is rare for an apartment to be available. If you are interested in purchasing an apartment immediately, please email lola@nightingalehousing.org and we will let you know if this is a possibility.

What are the steps in the purchasing process? How does it work?

The first step is to register your interest via the website. This means that you go on our general list to receive regular updates about Nightingale. It also means you are registered as interested in purchasing in a particular area.

When a project is announced in this area, you will receive an invitation via email to attend an information session about the project.

After this you you will receive an invitation via email to fill in a design survey to help the architects understand your preferences when developing planning permit applications and indicate your interest (this is non-binding).

You are then invited to attend a detailed design and balloting information session (usually before planning permit has been granted but sometimes after).

You then receive information with purchaser brochure, floor plans and balloting information. You fill in your ballot in order of preference and apartments are allocated via ballot process. If your ballot is pulled out of the ballot box, you are notified as asked to pay a refundable fee within 10 days to secure your apartment.

If you are not balloted, we still develop a backup ‘bench’ in case people drop out along the way. Purchasers accept the ballot and pay refundable fee.

After this purchaser sign contract and pay non-refundable deposit. Usually this group establishes their community and keep in contact with their fellow residents via social media and other social and community events during construction.

What information will I be given to help me decide to ballot or not?

Prior to balloting you will be provided with background documentation including a purchaser brochure, detailed floor plans and balloting information including indicative price ranges. This will provide you with the information you require to make an informed decision.

In the Commons we have a café, a wine shop and an architecture studio In Nightingale 1 we have a social enterprise café and the Nightingale Housing office and an architecture studio Nightingale 3 will have a fashion retailer in one of it’s tenancies

 

Timeframes

How long does the process take?

Every project is different, but it generally takes around 2.5 years from attending an initial information session to moving in. For example, Nightingale 1’s first information session was in February 2015 and residents moved in in December 2017.

When do I have to commit to buying?

When you complete your ballot form you are committing to buy an apartment. If you are successful in getting an apartment the ballot fee will be deducted from your deposit. If you are unsuccessful the ballot the fee will be refunded to you.

 

Financial

How much are apartments?

Each project will be different. There are a number of things which affect the price of apartment. It’s size, location and orientation for example. The cheapest one bedroom at Nightingale 1 sold for $415K while the best two bedroom apartment in Nightingale 1 was sold for $655K. At the completion of Nightingale 1 an average of $5,450 was refunded to each resident as a proportion of the un-spent construction contingency.

How do prices compare between Nightingale Apartments?

Nightingale 1.0
Florence Street Brunswick (Balloted 2016)
53m2 – 56m2 one bedroom apartments from $415k – $455k
80m2 - 81m2 two bedroom apartments from $630k – $665k

Nightingale 2.0
Station Street Fairfield (Balloted 2017)
52m2 one bedroom apartments from $469k –$484k
67m2 – 80m2 two bedroom apartments from $609k – $714k

Nightingale 3.0
209 Sydney Road, Brunswick (Balloted 2018)
63m2 one bedroom apartments from $552k – $572k
75m2 – 103m2 two bedroom apartments from $734k – $892k
120m2 three bedroom apartments from $1,025k – $1,035k

Nightingale Brunswick East
Corner of Miller & Nicholson Street, Brunswick East (Balloted 2017)
67m2 – 78m2 two bedroom apartments from $525k – $700k
91m2 – 95m2 three bedroom apartments from $820k – $941k

How are the apartments affordable?

The actual definition of affordable housing is housing that should only cost you 30% of your household income. Truly affordable housing in Australia is only available through state owned public housing or subsidized housing through a Community Housing Provider like Housing Choices Australia.

One of the key tenets of Nightingale Housing however is financial sustainability. We want to helping provide access to quality sustainable housing to all.

We aim to reduce the cost of housing through the following mechanisms:

  • Nightingale is a purpose driven model created to deliver sustainable housing at cost. Nightingale projects are not based on a profit model.
  • Financial transparency.
  • Impact investors and the cost of finance. Nightingale has been working to establish The Nightingale Housing Fund. This fund will provide equity and finance for Nightingale projects at lower rates further reducing the cost of apartments.
  • Build less give more. Nightingale is based on the idea of living simply. We aim to deliver quality, well built, sustainable homes that are stripped back and honest. We take out things like second bathrooms, individual laundries, basement carparks to reduce the cost of construction and ongoing maintenance.
  • Nightingale aims to take out the middleman. Nightingale projects do not employ real estate agents, marketing consultants and do not pay to build display suites. These costs were stripped out of Nightingale 1 and saved the project over $400,000. This reduced the average price of each apartment by over $20,000 each.
  • Partnerships: Fisher & Paykel, Bluescope Steel & Brickworks have all sponsored Nightingale because they believe in our mission. The savings on these products are passed directly through to the residents.
  • Reduced operational costs: Nightingale Housing has established an embedded energy network system that buys bulk GreenPower from Momentum Energy and passes on that bulk purchase price per Kilowatt Hour directly to the residents. This network also shares the benefit of the solar hot water with each of the residents.

We are particularly interested in how to help first home buyers to secure a home in areas close to their families, schools, places of employment. We also believe in long term affordability, that is, the real cost of housing associated with where it is, how far you have commute, the energy efficiency of the building, the cost of utilities and the operating and maintenance costs of the building.

Nightingale 1.0 was delivered at about 19% below the price of equivalent housing in the same suburb. But affordability doesn’t just mean apartment prices. Long term savings are achieved through environmental measures such as avoiding air conditioning and using an embedded energy network which significantly lowers energy costs. In addition, access to car shares and public transport negates the need for a dedicated car and car space.

The ongoing affordability of a Nightingale apartment is protected through the Nightingale covenant which is attached to the title and runs for 20 years. This ensures that this affordability is passed on to the next purchaser. One other avenue we are exploring is a 5% deposit which may ease access into the market given the long lead times that enable purchasers to make save up the remaining 5% required at settlement.

We also are looking at well-designed small studio apartments (25m2 - 35m2) in the $200,000 to $300,000 price range which may provide an opportunity for low income earners without large deposits to secure their own home.

What if my circumstances change - can I rent out my apartment?

The restrictive covenant on Nightingale apartments only restricts how you sell your apartment, not whether you can rent it. If you do need to rent your apartment, we encourage you to consider long-term rental periods to enable renters to become a part of the Nightingale community. We would also encourage you to set your maximum rent at 5% of your purchase price per annum.

Do you have any more information on the breakdown of financial contributions required from purchasers?

Typically, we ask for a refundable fee of $10,000 when you are successful in the ballot. Following this, your formal deposit of 10%, minus the $10,000 fee, is due when you sign the contract, with the remaining due on settlement. This is subject to change but will be confirmed before you are asked to ballot.

What are the Council Rates?

Rates are set by the Council. It is impossible for us to predict this. This will be confirmed in your contract of sale.

Can you get the deposit back if circumstances change?

Contracts of Sale are binding legal documents. However, if there were unforeseen and uncontrollable circumstances which mean you are unable to purchase your apartment, we would work with you with the aim of re-allocating the apartment so that the deposit could be refunded. This is where the idea of the ‘bench’ comes in which means we have a waitlist of those who missed out who may be called on to take your apartment. It is important to note that we can’t guarantee the return of your deposit if circumstances change for you. Also we will have to deduct any legal and administrative costs we incur as a result of reallocating the apartment.

What are the Body Corporate Fees?

This is determined on a building by building basis and will be disclosed in the contract of sale. However, as a guide, in 2018 body corporate fees at Nightingale 1 are approximately $62,000 per annum. This equates to an average annual fee of $2818 per apartment. This includes the provision of hot water and hydronic heating to each apartment - meaning no one at Nightingale 1.0 will get a hot water or heating bill, ever.

Who do you recommend for mortgages?

Nightingale Housing has a referral relationship with two banks:
Bank Australia - Amon.Poole@bankaust.com.au
Teachers Mutual - JDockmagian@tmbank.com.au
These banks understand the unorthodoxy of the Nightingale Model that other banks may struggle with, for example the restrictive covenant. It should be noted that these organisations donate $1000 to Nightingale Housing for every referral from Nightingale Housing.

Who maintains the common areas?

The maintenance of the property is carried out by values-aligned contractors and will be managed by the Owners Corporation manager. Miss V, the non-toxic cleaner for example, cleans the common areas, laundry and takes out the bins. Amy & Tess are qualified horticulturists and are employed as the green caretakers. Smaller details however, like cleaning the BBQ after use, looking after the worm farms, and managing the beehives are all handled by the Nightingale residents.

 

The Balloting Process

What is the Balloting process?

What do I do if I am overseas when the ballot is drawn?

You can still enter the ballot and we will contact you to let you know the outcome. You will be required to be in Melbourne to sign Contracts of Sale in person unless you have appointed a Power of Attorney to sign on your behalf.

 

Availability

Will you go to other parts of Melbourne? South, East, West?

We are geographically agnostic but there is criteria that we apply that is central to us achieving our mission. Sites must be:

  • An inner suburb infill site that is located within a 5-10 minute walking distance to facilities, services and public transport.
  • A site with a minimum size of $500m2 with a market value that will cost $85,000 or less per apartment for the land component.
  • Located in an urban renewal area that can accommodate medium density housing.

A significant issue is the price of land and how this translates into apartment costs. The cost per m2 is relative depending on how much density you can get on site and any development needs to hit our density sweet spot (around seven stories). We also need to satisfy a few other criteria - can we sell the apartments under market value? Would they appeal to first home buyers? Can housing providers afford the 20% allocation? All of these things must be taken into consideration by architects when purchasing sites.

Will you go to regional areas?

We want the Nightingale model to spread far and wide and we encourage everyone to do their bit to make housing more affordable, sustainable and community-focused. However, at this time there are some constraints on the size of developments and the geographical locations using the Nightingale model. This is because the model works best with medium density housing, typically 20 apartments or more located close to public transport and within walking distance to amenities such as local shops and services.

In many cases medium density sites in most regional and rural areas are not able to meet this criteria. However, we are looking at few alternative models in these areas such as citizen led co-housing as an alternative in the short term

Will you go interstate?

We are geographically agnostic but there is criteria that we apply that is central to us achieving our mission. Sites must be:

  • An inner suburb infill site that is located within a 5-10 minute walking distance to facilities, services and public transport.
  • A site with a minimum size of 500m2 with a market value that will cost $85,000 or less per apartment for the land component.
  • Located in an urban renewal area that can accommodate medium density housing.

A significant issue is the price of land and how this translates into apartment costs. The cost per m2 is relative depending on how much density you can get on site and any development needs to hit our density sweet spot (around seven stories). We also need to satisfy a few other criteria - can we sell the apartments under market value? Would they appeal to first home buyers? Can housing providers afford the 20% allocation? All of these things must be taken into consideration by architects when purchasing sites.

 

Key Worker Priority/Disabled/ Aboriginal and Torres Strait Islander

I’m a priority worker, how do I get preference?

Ballot forms include a section where you indicate if you are a key worker, an individual with a disability or registered full time carer or you identify as Aboriginal or Torres Strait Islander. Those who have indicated these groups will make up first of the ballot group.

*Key Service Workers are; police officers, teachers, nurses, firefighters and ambulance officers. Definition of Key Service Worker adopted from Bank West: Property pain – key workers struggle in capital cities (2011)

How do you prove your status?

Key service workers will need a letter from their employers prior to signing the contract. Those with a disability or full time carers will provide evidence of disability support pension or other evidence.

How do you incorporate community housing into your developments?

Nightingale Housing encourages all developments to allocate 20% through a community housing provider. For example, in Nightingale Village we are working with Housing Choices to manage the 20% allocation for affordable housing.

Priority to those with a disability - what does this mean in practice?

Ballot forms include a section where you indicate if you are an individual with a disability or registered full time carer and we will run a priority ballot before the mainstream group.

We are also working with third party providers, Housing Choices Australia, to help provide adequate support for people with disabilities and their families to access a Nightingale apartment.

Will full time carers of people with disabilities be able to access two apartments?

We would love to help facilitate this. The person with the disability will need to be successfully balloted through the priority ballot first.

 

Apartment Details

Will we have an opportunity to change any aspects of the final design of our apartment (i.e. storage location)

Each architect handles these requests differently. There were lots of changes requested in Nightingale 1 and these captured and distilled into eight common changes that all residents decided on adopting in their own apartment. It meant that everyone got up to eight tweaks to their apartment but that there was not a situation where there were 20 different apartments. It’s important that we keep it simple for the builder to ensure that we capture the economy of scale of a multi storey building.

Can I make changes to my apartment after settlement?

Yes – within the rules of the Owners Corporation of the building that you live in.

Will there be any apartments made with courtyards instead of, or in addition to, a balcony?

Every project design will be different, so we cannot rule it out.

Are there any opportunities to become more involved in the planning and design?

One of the benefits of the Nightingale Model is that it encourages and supports the active involvement of the community of residents in the development of their future homes. This means you will be invited along on the journey from a project’s inception. You will have the chance to input into the design via a design survey which asks a number of questions about thing such as:

  • Size of apartment
  • Number of bedrooms
  • Shared common spaces
  • Provision of air conditioning, car parking
  • Retail tenancies
  • Family configurations
  • Pets

Whilst these are very high level questions, they help to inform the design of the building and help with the planning permit process. You will be presented with the apartment designs before you are asked to ballot. Once balloted you can ask for changes to your apartment, in fact most architects to date have engaged with their residents to survey for common requests for changes which have then led to amended designs.

How will I know what is included in the design?

You will be provided with detailed information at the architect’s design information sessions and will have the chance to ask questions and interrogate the design. Before being asked to ballot you will be provided with a link to a secure website with full plans, FAQs, draft contract including the Nightingale covenant and full details of how the ballot will run.

Is the bike parking allocated to apartment or just shared?

Bike parks are generally shared not allocated.

Can the apartment be reconfigured to include a bath?

Generally, yes but you will need to discuss with your Nightingale architect as each project is different. In Nightingale 1 some bathrooms were reconfigured to include a bath, they were located in the same position as the proposed shower, necessitating an over-bath shower. It should also be noted that some of the baths were smaller than usual to accommodate this.

How small are the studios?

We see well-designed studios as an important entry point for many first buyers and are introducing them for the first time in Nightingale Village development in Brunswick. While we do not have set prices for these, our early work indicates that for studios from 25m2 - 35m2 the price points could be between $200,000 to $300,000, however this is a guide only.

How much is the cheapest studio?

While we do not currently have set prices for our studios in Nightingale Village, our early work indicates that for studio apartments between 25m2 - 35m2 the price points will be between $200,000 to $300,000. Please note this is a guide only.

 

Legalities & Owners Corporation

Is there the possibility to add other people onto the title at a later stage?

The person that is balloted must be on the title. Nightingale will not allow nominations of the contract. It is important to us that the ballot and allocations are transparent adding other people to the title at a later stage could potentially muddy this process.

What are you expecting the body corporate fees to be? Will these be paid as per the building we are in or a contribution to the entire village?

The body corporate fees will be per building but there will also be an annual contribution to the shared facilities in the village.

What are the terms of resale?

  1. First right of refusal: you must offer your apartment back to the Nightingale Housing to offer to the Nightingale community list first. If, after a period of one month, your apartment hasn't sold, you are free to offer it through traditional channels.

  2. Resale price: the maximum resale price of your property cannot exceed the price you paid for it plus the the percentage increase in median house prices of the suburb where the property is located for the year you bought it to the year you are selling it, as determined by the REIV
    https://www.reiv.com.au/property-data/median-prices

What is the restrictive covenant?

Nightingale aims to provide housing at cost not apartments for investment. One of the key tenets of Nightingale Housing is affordability. The restrictive covenant ensures that this affordability is passed on to the next purchaser. There are two steps to the restrictive covenant.

  1. First right of refusal: you must offer your apartment back to the Nightingale community list first. If, after a period of one month, your apartment hasn't sold, you are free to offer it through traditional channels. Nightingale will charge a fee of $1000 to facilitate this sale.

  2. Resale price: the maximum resale price of your property cannot exceed the price you paid for it plus the percentage increase in median house prices of the suburb where the property is located for the year you bought it to the year you are selling it, as determined by the REIV
    https://www.reiv.com.au/property-data/median-prices

In the covenant, it states that the increase in property value will be referenced back to the year the property is purchased. Is this the year that the contract of sale is sign or the year of settlement?

The year the Contract of Sale is signed.

In the event of selling our apartment the covenant stipulates offering it first to someone on the Nightingale Housing waiting list? How does that apply before settlement?

Yes, this is correct. Importantly, resales are not permitted prior to settlement unless there are unfortunate circumstances that are beyond your control (i.e. significant illness or relationship breakdown) in which case we will do everything we can to find another purchaser.

Sorry, we are unable to recommend a Legal Practitioner or Conveyancer as this may cause a conflict of interest.

How much is stamp duty?

The nature of Stamp Duty is inherently complex and varies depending on both your personal situation and property value. The table below gives a high level indication on stamp duty application however Nightingale Housing strongly recommends that individuals seek independent financial advice.

First Home Buyer
Property Value < $600,000 = no stamp duty
Property Value > $600 - $750,000 = concessions available
Property Value > $750, 000 = full stamp duty, no concessions

Second Home Owner
Property Value < $550,000 = stamp duty on land cost only
Property Value > $550, 00 = full stamp duty - no concessions

For further, detailed information on Stamp Duty, please refer to the State Revenue Office of Victoria website. See Off-the-plan sales concession to find out what Stamp Duty concessions you can apply for when buying a Nightingale apartment

What incentives currently exist for First Home Buyers?

Please refer to the State Revenue Office of Victoria website for detailed information on first home buyer incentives. See First home buyer duty exemption or concession to find out what incentives currently exist for first home buyers

 

Shared Equity

Does Nightingale Housing take part in shared equity schemes?

There are many shared equity schemes across Australia, and Nightingale Housing is happy to work with shared equity schemes. However, there are limitations to some schemes that may preclude the Nightingale Housing model. For example, the Victorian Government’s HomesVic scheme will only consider the construction of homes for which completion is planned to occur within three months of entering into a contract of sale, which precludes most Nightingale Housing projects.

 

Sustainability

What is the Green Travel Plan?

The Green Travel Plan forms part of the Planning Permit and outlines the various steps the project is required to take to ensure the occupants use sustainable modes of transport instead of private car ownership. This includes a $500 (per bedroom) payment towards your choice of sustainable transport such as GoGet share cars, myki cards, Uber accounts or bike servicing/repairs. The Green Travel Plan is contained in the Contract of Sale and is administered by the Owners Corporation.

For example if you own a two bedroom apartment in Nightingale 1, and if you chose MYKI as your preferred green travel method you would pay $1000 to the Owners Corporation and the Owners Corporation would provide you with two $500 Myki cards. The Owners Corporation will then report back to the City of Moreland annually on what the car ownership is within the building and what alternate modes of transport the residents use.

How does the $500 contribution work?

The Green Travel Plan forms part of the Planning Permit and outlines the various steps the project is required to take to ensure the occupants use sustainable modes of transport instead of private car ownership. This includes a $500 (per bedroom) payment towards your choice of sustainable transport such as GoGet share cars, myki cards, Uber accounts or bike servicing/repairs. The Green Travel Plan is contained in the Contract of Sale and is administered by the Owners Corporation.

For example if you own a two bedroom apartment in Nightingale 1, and if you chose MYKI as your preferred green travel method you would pay $1000 to the Owners Corporation and the Owners Corporation would provide you with two $500 Myki cards. The Owners Corporation will then report back to the City of Moreland annually on what the car ownership is within the building and what alternate modes of transport the residents use.

The sustainable transport levy is charged in addition to the Owners Corp Fees. It is paid yearly, and must be used for sustainable transport measures, as agreed by the Owners Corporation.

With the Nathers rating - is 7.5 uncommon statistically in the inner north?

Yes. The Building Code for apartments requires a minimum rating of 5 stars for an apartment with an average of 6 stars across all apartments within a single building. This is the current requirement to obtain a building permit, so the majority of buildings meet minimum requirements only and do no not seek better outcomes. Nightingale 1 has a NatHers average of 8.2 stars, Nightingale 2 has 8.6 stars.

What are the sustainability measures?

The Nightingale Housing model mandates some simple sustainability measures such as:

  • Located in well-located urban areas in terms of accessibility to public transport, cyclist facilities and other local amenities.
  • Ensuring a high thermal insulation, which enables the buildings to have no air-conditioning.
  • Long-term environmental sustainability, requiring a minimum 7.5 star NatHERS rating.
  • 100% fossil fuel free and carbon neutral in operations (including solar PV array)
  • Passive ventilation and the incorporation of low embodied energy materials.
  • Low VOC finishes.
  • Rainwater harvesting.
  • Productive Gardens.
  • Solar arrays feeding back into the building.

Beyond environmental and financial measures, a fundamental component of Nightingale buildings is the social sustainability of each community created. By foremost recognising that each apartment project is creating a new community, rather than a disassociated body of neighbours, design decisions become more considered and specific for future residents.

Deliberative design asks future occupants questions about how they want to live; Nightingale Housing architects then use this feedback to design homes that truly work for the person who is going to live there.

 

The Baugruppen Model

What is Nightingale Baugruppen?

‘Baugruppen’ is a housing model developed in Germany and used around the world; the name translates simply to ‘building group’. The Nightingale model is in essence already baugruppen, being led by architects and residents with a focus on intentional community, environmental design and affordability.

At Nightingale, we deliver housing at cost and working to reduce ‘cost’ is one of our primary drivers. The financial structure of the baugruppen model dramatically reduces cost and for that reason is the next obvious step in our evolution.

How do the financials work for Baugruppen?

  1. By giving future homeowners the ability to invest their funds in the development of their own home, the project requires less capital from investors. This means less interest paid to those investors and that represents a project saving. As this is a Nightingale project, all savings are returned to the baugruppen members to reduce the price of their apartments.

  2. On formation of the Baugruppen the members go on title of the land and then engage Nightingale to manage the development for them. As such Nightingale does not sell them an apartment, just manages the process. With no ‘sale’ involved Nightingale does not have to pay GST on sales revenue, this becomes another project saving that reduces the cost of the apartments.

  3. Because there is no ‘sale’ there is no Stamp Duty to be paid on any of the properties regardless of first/second home owner status and/or price.

A standard Nightingale aims to deliver between 10 and 20% less than market value. A Nightingale baugruppen project aims to deliver between 20 and 30% less than market value.

I would like more details on Baugruppen – how are you making it work?

Nightingale Housing is collaborating with URBAU, a new company that is focused on delivering affordable housing through the baugruppen model.

When Nightingale Housing and URBAU find a site, we then ballot the future homeowners . Once we've found our committed group, they enter a 'Baugruppen Joint Venture' agreement and go on title of the land. This group become the landowners and they engage the Nightingale Development Company to manage the development for them.

Each of these homeowners commit 10% of their projected apartment cost upfront. (5% for first home buyers) Those funds are then invested in the project to offset development costs.

These homeowners are involved in the development process from very early on, in exactly the same way as they are in all Nightingale projects. This gives these homeowners a greater sense of ownership and authorship over their ultimate home than they could ever achieve with a traditional developer.

On completion of the building, each member of the group pays for the remaining amount of their apartment in the same way that they would in a traditional purchase. This cost will be adjusted to reflect project savings.

Each homeowner will receive a separate title on their property in exactly the same manner of a traditional development.

Are there any risks with Baugruppen?

Yes. The difference between a standard Nightingale model building and a Nightingale Baugruppen is that the baugruppen model allows future homeowners to invest their own funds in their own future homes.

While this affords significant savings, unlike a traditional ‘deposit’ which is held in a secure account by a solicitor it means your funds could be at risk. If the project were to fail, there is no guarantee that your funds could be returned.

It’s important however to note that Nightingale projects should not be viewed through the same lens as traditional property development. Arguably the most significant risks facing property developers today are both the volatility of the housing market and purchasers defaulting on their off-the-plan purchases. We do not operate as traditional property developers primarily because we remove the speculative nature of development and remove the incentive for profit.

By building what people actually want rather than what generates the most profit and by delivering at cost Nightingale has established a strong following and a backlog of interested purchasers. That purchaser wait list means we pre-sell 100% of our apartments and have a strong back up should anyone pull out. By delivering at a considerably reduced price through the baugruppen model we create a significant buffer against corrections in the housing market dramatically reducing the likelihood of purchaser default.

On the surface it would appear that having funds involved in the development is a risk, however the baugruppen model actually significantly de-risks the project reducing the likelihood of failure.

How does the Baugruppen model affect the first home buyer grant?

Our understanding is the under the baugruppen model the participant is not eligible for the first home buyers grant, however, the baugruppen savings considerably outweigh the value of the first home owners grant.

Having said this, there are a number of factors which can affect a First Home Buyer’s ability to access incentives offered by the State Revenue Office. Participants should seek their own, independent legal advice to ascertain their position in respect of these incentives.

What if I need to pull out before contract signed under Baugruppen?

When the participant signs the BG agreement it is a commitment to purchase at an indicative price. That agreement is in effect a contract of sale. If a participant withdraws on that agreement it is no different to defaulting on a contract of sale. Nightingale Housing will endeavour to replace a participant wherever possible utilising our purchaser list. However, there will be cost implications for the incoming participant such as stamp duty. Those cost implications will be covered by the initial fee with any funds remaining returned to the withdrawing participant.

Basically, if you’re not sure you’re ready to buy a home then please don’t enter the ballot, and please don’t sign a contract.

What if I need to drop out after contract signing but before settlement under Baugruppen?

When the participant signs the BG agreement it is a commitment to purchase at an indicative price. That agreement is in effect a contract of sale. If a participant withdraws on that agreement it is no different to defaulting on a contract of sale. Nightingale Housing will endeavour to replace a participant wherever possible utilising our purchaser list. However, there will be cost implications for the incoming participant such as stamp duty. Those cost implications will be covered by the initial fee with any funds remaining returned to the withdrawing participant.

Basically, if you’re not sure you’re ready to buy a home then please don’t enter the ballot, and please don’t sign a contract.

Do I need a different deposit for Baugruppen compared to a standard development?

Baugruppen and Nightingale are aiming for 5% deposit for first home buyers and 10% for previous home owners. This is subject to change but will be confirmed prior to balloting.

Can you give a breakdown of financial contributions required by purchasers for baugruppen?

Information Event / Survey - no financial commitment

Balloting - $10,000 non-refundable Commitment Fee

Equity Contribution 01 - 50% of remaining balance *

Equity Contribution 01 - 50% of remaining balance *

*Deopsit is indicatively set at 5% for First Home Buyers, 10% for Second Home Owners

Can I buy under the Baugruppen model if I’m not an Australian citizen?

Sorry, we are unable to answer this query. Purchasers should seek their own, independent legal advice.