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GUEST OBSERVATION
Recently I received a frantic phone call from a client to whom I was introduced to four weeks ago and who asked me "What’s wrong with just going to the bank I have been with for years?"
When I met this client Andrew (name has been changed) we explained to him that not all banks are the same, they all have different credit policies and lending criteria. Andrew though was convinced his personal banker at his local branch would be able to help him.
So why was Andrew calling me?
Well it seems that Andrew had decided to really dive in at the deep end and purchase a block of six units for just over $1.5 million, with plans to renovate and strata each individual unit.
This sounded great. Based on Andrews numbers by spending around $180,000 he would be increasing the value of his asset by somewhere between $50,000 to $100,000 per unit. And since they could now be sold off individually in the future he had an asset that was much easier to sell if he needed to.
When I met with Andrew originally though, his plan was simply to rent out the newly renovated properties and based on fixing his interest rate of 5% for five years. With a rental return of just over 5% he was hoping to be in an almost cash flow neutral position. In addition with the new equity, which he could access, he would be able to purchase another investment and would be well on his way to having a great property portfolio.
Well Andrew had just received his loan offers from his bank and what his personal banker had failed to tell him was that his bank was treating the application as a commercial application. That meant a valuation fee that was closer to $3,000 than the $900 he was expecting and legal and application fees that totaled almost $12,000. Worst of all his interest rate would jump to nearly 7%. Oh and the lender would only lend at a loan to value ratio (LVR) of 70%.
All of a sudden Andrew’s investment looked like requiring over $33,000 a year in extra income to support the loan. This property had gone from looking like a great opportunity to a drain on his finances.
What could be done?
Firstly, we found a lender who was happy to treat the loan as a standard residential lend. That meant more modest valuation costs.
There was some bad news though. To protect their interest the lender would only lend 70%, while the six units where not strata registered.
But the good news was they would offer him a one year fixed interest rate of 4.79%. This year would give him the opportunity to arrange the strata and renovations and the lender was willing to offer to revalue the property at the end of the year to capture any equity and take the loan up to an 80% lend.
Andrew's story is typical of many of the clients we meet and who call us. Often the last thing thought about is what effect the lending will have on the investment.
Albertus Waldron is a partner at Chan &amp; Naylor. For a free portfolio review or guidance on which lenders might be right for you, you can contact <a href="https://www.chan-naylor.com.au/contact/" target="_blank">Chan &amp; Naylor</a>. 
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What’s wrong with just going to the bank I have been with for years?

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GUEST OBSERVATION
We all want a property portfolio that costs us nothing to hold. It’s the dream to be able to purchase more and more properties because every property pays for itself. So why do people opt for negatively geared property if the best option is a positively geared property portfolio?
The general argument is that negatively geared properties are that way because they are in areas offering higher capital growth but lower yields. For example, metropolitan areas where the value of the property is high in comparison to the rental income it receives. And the common notion is positively geared properties, are typically in regional or fringe areas of cities or may involve a dual occupancy, like a granny flat and as a result achieve higher rental yields in comparison to the overall value of the property.
However like all things there are exceptions to the rules and some properties with reasonable capital growth can still offer reasonable rental returns. For example, according to the Commonwealth Banks recent report on the state of the property market in Australia over the last 12 months:
<a href="/news">Kelvin Grove</a> in Brisbane reported 4% capital growth and averages 4.7% rental yields.
<a href="/news">Strathfield</a> in Sydney reported 13% capital growth and averages 4.5% rental yields
<a href="/news">St Kilda</a> Melbourne reported 4.7% capital growth and averages 4.3% rental yields
And with RP Data’s latest economic report showing average nationwide unit rental yields while down are still achieving on average 4.7%, most investors would be looking at the current three year fixed interest rates under 5% and thinking we have hit the sweet point where you can achieve the dream and just keep adding properties almost ad infinitum.
So why is lending still a problem and why can’t investors just keep adding properties?
The first thing to keep in mind is the normal costs associated with owning an investment property, like real estate agency fees, council rates, strata fees. Then there are the ones that people often overlook like the unexpected hot water system replacement.
Let’s assume though that you achieve a rental return of 6% and the costs are no more than 1% so that you have net rental of 5%.
Won’t the lenders give you unlimited loans?
This is when the lenders start to apply their own stress testing to your borrowing and it can make a huge difference. For example while some lenders will allow you to consider the actual interest rate of your loans where the loans are fixed for more than three years others will apply the normal variable testing interest rate.
And what a difference, on a typical $500,000 loan the difference could be. Interest only payments with a fixed rate of 4.99% of $2,079 per month or calculated loan repayments of $3,530 per month where the lender loads the interest rate by 2% and applies principle and interest payments over 25 years.
That is a difference in rental payments of $1,451 per month in order to get the loan to match the rental income or put it another way, a net rental yield of 8.47%.
Now there are creative ways of increasing your rental yield like renovations, allowing the tenants to keep a pet or adding an extension or granny flat that will allow the property to generate an additional income stream.
So why do lenders look differently at your current loan repayments? We know it all comes back to the four credit rules or  four C’s of credit. That is each lender is weighting the importance of your ability to afford the loan repayments slightly differently depending on their expectation of where interest rates, unemployment and the general economy might be going.
So there is no right or wrong answer to the question about whether negative or positive is right or wrong because for every investor is comes down to personal circumstance, your individual goals and your ability to service your loans.
If you would like guidance on which lenders might be right for you or a free property report on the possible capital growth of your properties why not give us a call.
Albertus Waldron is a partner at Chan &amp; Naylor. For a free portfolio review or guidance on which lenders might be right for you, you can contact <a href="https://www.chan-naylor.com.au/contact/" target="_blank">Chan &amp; Naylor</a>.
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Why lenders are negative about positively geared property

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GUEST OBSERVATION
Why will one lender approve one loan and another lender decline the same loan? And what do you do when you can’t tick the lenders boxes?
I have been meeting with various lenders risk assessment and the credit teams behind them and for the first time in many years, the credit pendulum is swinging ever so slightly away from conservative lending and back to a responsible but slightly more aggressive lending outlook.
Now not everyone is comfortable with this and recently top NAB exec Joseph Healy, head of the NAB's business banking and Asia operations, was quoted in The Australian taking a swipe at the bank's competitors for “aggressive” tactics designed to gain market share. 
While not mentioning names, Healy hit out at one competitors tactics: “One particular institution has been very aggressive, and that aggression is evident in the market share and the growth they've seen."
This change in lending policies is opening up some fantastic opportunities for investors, if you know how to access it.
I often speak about how to improve your prospects of securing a loan when you approach the major lenders. I base my presentations around the 'four C’s of credit': character, capacity, collateral and conditions.
This change in lending policies as the pendulum moves away from collateral is opening up some fantastic opportunities for investors but brings more sharply in focus the capacity of the borrower to afford the loan repayment, their capacity is now the highlight.
In the past granny flats or small developments were often in the too hard basket with lenders devaluing the end product so as to reduce their risk but in actuality putting these options out of the reach of all but the most cashed up investor. So some lender are now instructing their valuer to consider the actual construction costs of the granny flat. This small change is putting the possibility of adding a granny flat onto a property within the reach of most investors.
For first home buyers the 95% loan to value ratio loans are also starting to become available again for those who can qualify.
So, how can this be responsible lending with even APRA warning last year that they had concerns about high LVR lending and loosening lending standards?
In APRA Insight they pointed out: “Sustained low interest rate environment poses further risks to lending standards. It is important for ADIs to ensure that new borrowers are able to service debt and afford higher repayments when interest rates rise from current record low levels. APRA expects ADIs' serviceability assessments to test borrowers' capacity to meet higher repayments through adequate interest rate buffers and floors, applied to new and existing loan commitments.”
So even APRA give us the answer: capacity, as lenders relax their lending criteria on the back of the record low interest rate APRA is encouraging lenders to test borrowers at higher interest rates than would be typical
What does this mean in practical term? Previously lenders would build a buffer into the interest rates offered of between 1.5-2% when testing serviceability. This meant that in terms of being able to afford loan repayments borrowers would have to undergo large rates rises before the interest rate increases would begin to hurt household budgets. What APRA is now encouraging lenders to do is to set a floor, a lowest limit for testing of interest rates. With one lender this has meant that regardless of interest rate reductions all their loans are tested with a hypothetical interest rate of 8% which is nearly 3% higher than the actual interest rate offered by the lender on their discounted variable interest rates.
What is interesting though is that while we have seen the easing off of lending standards, particularly with collateral and character we are only just starting to see these harsher testing interest rate criteria filter through.
But be warned though, we have seen one lender move this month to move the testing interest rate on their fixed interest rates to a higher level than previously, most likely on the back of pressure from APRA.
So now is a great time to review you property portfolio and to review your borrowing capacity before the new APRA regime begins to really take hold.
Albertus Waldron is a partner at Chan &amp; Naylor. For a free portfolio review you can contact <a href="https://www.chan-naylor.com.au/contact/" target="_blank">Chan &amp; Naylor</a>.
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Changing lending policies are opening up fantastic opportunities for some investors

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Are your loans stopping you from being a successful property investor?
Many investors wonder how they will ever build a property portfolio when they’ve been told they can’t access any more equity by their lender.
Or they feel like they can’t afford the payments on the loans they already have and even one property feels like a stretch, even though on paper their properties are nearly cashflow neutral or even positive.
Or they feel like they are still paying too much tax.
You would be surprised how many times people come to us with these same questions and don’t realise that often the loans they took out are causing some of the problems and holding them back from being a successful.
So how does this happen?
The first thing to remember is that banks and lenders are not property investing or tax specialists. Their job is to sell a product. It’s a bit like buying a car to tow a caravan; if you just ask for the cheapest car and don’t mention they want to tow a caravan you will probably end up with the wrong car.
John’s case study
Here is a typical case study from our team in Melbourne, where John* was referred by a friend.
John explained that he has 10 properties all with loans to one major big four bank lender, and would like to buy property number 11. However, this time when John approached his previously helpful bank manager, he was told that the bank could not lend him anymore money and he didn’t have sufficient equity.
For John this was a big surprise because he was on a much higher income than his last property purchase and the majority of his properties had also increased in rent and market value, thus increasing his equity position. He was also sure by his calculations that because of this all his properties were almost positively geared and in fact his previous accountant had told him that he would have to pay tax on the new rental earnings.
So, what was going on and why couldn’t his bank manager assist him?
After reviewing John’s financial position and completing a preliminary assessment, John’s finance strategist and accountant were able to determine that:
<ol>
<li>John’s current bank loans had expired on interest only and rolled over into principal and interest payments. This had the effect of increasing his monthly commitments and reduced his cashflow;</li>
<li>John's current bank had also cross collateralised his whole portfolio (10 properties including his owner occupied property), which impacted his overall equity position and borrowing capacity. Therefore, any changes to the current loans (and/or any request of additional lending) required the valuation and reassessment of all the properties/loans in his portfolio. This meant that his borrowing capacity was being tested on the total loans at the higher of the bank new loan testing interest rate further restricting what he could potentially borrow;</li>
<li>Due to John’s substantial borrowings with the one bank, he had also reached the bank's loan limit and mortgage insurer exposure level of $2.5 million, meaning that he could not borrow any“additional money” and/or had to reduce the overall loan-to-value ratio (LVR) to 70%. This also negatively impacted what equity could be accessed and also what John could then borrow;</li>
<li>Several of John’s loans where on older loan products with interest rates that were 0.1 percentage points or more  higher than new more competitive loans being offered by the same bank; and</li>
<li>John’s previous accountant had been overlooking some depreciation that John was entitled to. The team also identified some tax deductible loan portions that further improved John’s tax position &amp; negative gearing add back for serviceability.</li>
</ol>
 
The solution for John was to regain control of his financial position
Once John had worked with his lending and accounting specialist he was in a much better position to achieve his goals.
The 1st step was to have his team arrange for valuations on each property in his portfolio, all ten in total. Once the valuations were received, he was able to ascertain his equity position and start reviewing his borrowing capacity on all the current loans in his portfolio and ascertain whether further equity could be obtained as well as funding for the new purchase.
The 2nd Step was the “uncrossing” John’s securities with his current Bank so that all loans were secured against individual properties/or the property in which they related to. This provided John more flexibility in his portfolio and the ability to change lenders/access equity/sell property more readily should his financial position require this.
Once the 2nd step was completed, the uncrossing securities and overall restructure, he was able to refinance 2 of his current properties loans to a new lender to release further equity of $300K and obtain a  pre-approval with a third lender of $500K to purchase his 11th property.
Keep in mind that all of this has allowed John to rebalance his portfolio and exposure levels for future property investing. And the initial steps of reducing his loan exposure with his current Bank to below the $2.5 million has given him enough room to potentially increase these facilities in the future.  In addition simply by completing these steps, he has drastically improved his cash flow position, saving over $2,000 per month!
The end result
<ul>
<li>Ensuring John’s property portfolio was uncrossed and balanced to suit him (and not the bank);</li>
<li>John’s borrowing capacity was maximised by utilising his negative gearing and add backs to access $300,000 additional equity for further investment and “buffer” purposes;</li>
<li>All his loans and sub accounts were structured correctly for accounting and tax purposes;</li>
<li>His loans were negotiated to obtain the maximum discounted rates where possible to improve cashflow;</li>
<li>All his investment loans were interest only and not principal and interest; and</li>
<li>A loan approval for his 11th investment property at $500,000 loan amount.</li>
</ul>
 
Albert Waldron and Lauren Mamaj are part of the team of property investment specialists at <a href="https://www.chan-naylor.com.au" target="_blank">Chan &amp; Naylor</a>, national property, business tax accounting and wealth advisory group 

 
 
<ul></ul>
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How your loan structure could be hindering your property investment potential

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With the recent interest rate reduction in October by the Reserve Bank of Australia (RBA) and another one predicted to possibly occur on Melbourne Cup Day next week. I thought it would be a good time to have a look at just what a difference a 0.25-percentage-point drop in your interest rate really does and how to take advantage of it. (As long as the bank pass on the full rate reduction, but that’s a discussion for next month.)
The first thing that happens every time the rate drops is that every media outlet and even we often send out a chart of what happens with your repayments. And it’s true that on an average $350,000 mortgage a 0.25% difference will save you about $72.91 per month in interest.
For the clever investor or home owner, though, the impact can be far greater.
So how do you take advantage of the recent rate reductions?
For home owners looking to pay off their home
Maintain your current repayments
Now that sounds simple enough, but in reality this can be a little tricky because it can depend on your lender. You see some lenders like the idea of collecting 30 years’ worth of interest from you and will adjust your payments downward each time the interest rate drops. So you get a letter in the mail that says your new payment will be X, you read it and file in the circular filing cabinet. Then what ends up happening is that next month the automatic payment gets taken and you don’t realise and all of a sudden you have spent that extra $72.
If you want to really take advantage of the extra money what you may need to do is call your bank and change your repayment from the minimum amount to a set payment. It’s a simple call that could cut years of your home loan. Why not check out the <a title="Extra Repayment Calculator" target="_blank" href="https://www.chan-naylor.com.au/uploads/57029/ufiles/extrarepayments">Extra Repayment Calculator</a> at <a title="Chan and Naylor | Home Loan &amp; Finance Calculators" href="https://www.chan-naylor.com.au/calculators/">chan-naylor.com.au/calculators</a> and you will see that an extra repayment of $72 a month will cut a $350,000 mortgage by two years and eight months.
Put the extra fund towards paying off your credit cards
If you aren’t paying off your credit card on a monthly basis the rate reduction can be a great way to finally start bringing that credit card balance down. Again, this can be as simple as arranging with your bank to set up an automatic direct debit form the same account your mortgage payments where coming from so that you don’t notice the extra $72. And remember when rates are falling it can be a great time to negotiate to get your credit card interest rate down.
 
<hr class="system-pagebreak">
 
It can be a great time to check out a new loan
Because the market is more competitive and lenders are trying to position themselves after a rate reduction and get you to commit, it can be a great time to shop around for a mortgage. Lenders tend to offer rate discounts and switching incentives to get you to sign on the dotted line, so negotiating can be easier. The savings made by reviewing your loans can be quite substantial, however as always, just be sure to weigh up the overall costs of refinancing (upfront, ongoing and exit fees) compared to the savings.
For property investors
In the last 12 months interest rates have dropped over 1.5 percentage points (according to the RBA website), that means we have had six rate drops of 25 basis points each in the last 12 months. Well, you're probably thinking that's pretty simple maths and rather obvious. But have you thought about the fact that these rate reductions have essentially reduced your interest cost by six times $72 a month? That means you now have almost $432 extra per month.
What if you put that $432 in cashflow per month back to work for you? With variable interest rates around 6% at the moment that’s an extra $86,400 you may be able to borrow. Probably not enough to get you into another property, but then these numbers are based on a single $350,000 loan.
What if you have a home loan and an investment property? You can see that the last 12 months could really be doing you some favours.  And with three-year and five-year fixed rates between 5.5% and 6% now is a great time to take advantage of a <a title="Request a Free Lending Capacity Check | Chan &amp; Naylor Finance |" href="https://www.chan-naylor.com.au/free-lending-capacity-check/">Free Lending Capacity Check</a> to check your new borrowing capacity.
With your extra borrowing power it can be a great time to be looking for new property investments especially where property market prices have fallen. However when interest rates drop, eventually people start to notice the extra money in their pockets and eventually consumer confidence starts to return.
Now if anyone can tell me exactly when consumer confidence is going to return, as they say in the old movies I will buy them a steak dinner.
Albertus Waldron is finance strategist and partner at<a href="https://www.chan-naylor.com.au/" target="_blank"> Chan &amp; Naylor</a>
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How owner-occupiers and property investors can make the most of an RBA rate cut

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I often speak with investors, and the question about how much deposit should they put into a property purchase and how much cash they should keep as a buffer often comes up in the discussions. What many investors fail to realise is the contribution that mortgage insurance can make to the creation of wealth. Most just see it as another expense.
So what is mortgage insurance and why and when should you consider using it?
Mortgage insurance is a one-off charge that is paid by the property purchasers who borrow more than 80% of the purchase price in the case of full-doc loans and 60% in many cases on low-doc loans.
It can be the valuable tool that can help you achieve your goals much sooner.
Consider the comment I often hear from property investors: “Why would you want to incur an extra cost?” As a result most try to avoid paying mortgage insurance, which they view as an impost by the lender.
What some investors fail to recognise is that in some instance it can be a very valuable tool that gives them more leverage and enables them to grow their asset base faster.
For example, two investors have the same $100,000 to use a deposit but each approaches mortgage insurance slightly differently:
Investor one wants to avoid paying mortgage insurance and takes a conservative approach purchasing a property for $400,000. With a loan at an 80% LVR or $320,000 the $100,000 covers the 20% or $80,000 deposit + $20,000 to cover stamp duty, legals, etc.
Investor two take a different approach and is happy to gear up to 90% and pay the mortgage insurance costs.  This allows for the purchase of two properties at $300,000 each. Now the $100,000 deposit covers the 10% or $60,000 deposit + $30,000 to cover stamp duty, legal etc, and leaves the investor a buffer of $10,000 in cash. To be fair it has cost 1.22% of the loan amount of $540,000 or $6,588 in mortgage insurance to secure the extra funds. This is explained in the table below.
However, if in the first year of ownership those properties go up by 5% the mortgage insurance has allowed the investor to purchase an additional $200,000 in property that has now increased in value by an additional $10,000, which is more than enough to offset the cost of the initial premium.
So how does lenders mortgage insurance (LMI) work? Firstly is should not be mistaken for mortgage protection Insurance, which covers the loan repayments on your mortgage in the event of death, sickness, unemployment or disability. LMI protects the lender against a loss should you default on your loan. For example if the security property is required to be sold as a result of the default, the net proceeds of the sale may not always cover the full balance outstanding on the loan. In this case, the lender is entitled to make an insurance claim for the reimbursement of any shortfall, calculated in accordance with the terms of the insurance policy. The mortgage insurance companies will then generally pursue the borrower to recover these funds.
With a normal 80% lend, it is fairly unlikely that there will be shortfall after the sale of the property and as a result most lenders will take on this risk. However as the loan-to-value ratio (LVR) rises, the borrower is required to contribute less deposit. The possibility of the property being sold at mortgagee sale and the proceeds not being enough to cover the loan also rises. As a result the lenders look to avoid this risk by insuring the loan against this possibility.
As the risk is now taken by the Mortgage Insurance company they also look to match the insurance premium to the level of risk. As a result mortgage insurance is charged on a sliding scale so for example if your loan to value ratio (LVR) is 84% you will pay less mortgage insurance than if you are borrowing 95%.
For example on a $300,000 loan you could expect something like the following scale.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="205" valign="top">
LVR Band
</td>
<td width="205" valign="top">
Premium as a percentage
</td>
<td width="205" valign="top">
Approximate Cost
</td>
</tr>
<tr>
<td width="205" valign="top">
80.01% to 82%
</td>
<td width="205" valign="top">
0.41%
</td>
<td width="205" valign="top">
$1,230
</td>
</tr>
<tr>
<td width="205" valign="top">
82.01% to 84%
</td>
<td width="205" valign="top">
0.61%
</td>
<td width="205" valign="top">
$1,830
</td>
</tr>
<tr>
<td width="205" valign="top">
86.01% to 88%
</td>
<td width="205" valign="top">
0.91%
</td>
<td width="205" valign="top">
$2,730
</td>
</tr>
<tr>
<td width="205" valign="top">
88.01% to 90%
</td>
<td width="205" valign="top">
1.22%
</td>
<td width="205" valign="top">
$3,660
</td>
</tr>
<tr>
<td width="205" valign="top">
90.01% to 92%
</td>
<td width="205" valign="top">
1.68%
</td>
<td width="205" valign="top">
$5,040
</td>
</tr>
<tr>
<td width="205" valign="top">
92.01% to 94%
</td>
<td width="205" valign="top">
1.89%
</td>
<td width="205" valign="top">
$5,670
</td>
</tr>
<tr>
<td width="205" valign="top">
94.01% to 95%
</td>
<td width="205" valign="top">
2.10%
</td>
<td width="205" valign="top">
$6,300
</td>
</tr>
</tbody></table>
 
Also because the frequency of defaults can vary depending on the lender it is also worth noting that the amount charged can vary significantly from lender to lender, even given the same loan-to-value ratio, so it can pay to shop around.
Some lenders also pay a part of the mortgage insurance costs to a point and some, like Westpac, CBA and ING, have their own mortgage insurance for some loans. Some lenders even switch between mortgage insurers depending on who has the lower cost premium. So if you are going to go down this track it is important to speak with your mortgage broker about which lender is best for you circumstance.
So while at first glance mortgage insurance can appear to be an unnecessary expense charged by the lenders. The plain fact is that avoidance of LMI at all costs can be a false economy, which ultimately curbs the acquisition of further growth assets. If you are truly treating your property investing as a business it can be seen as just another cost of doing business. So if you are one of those investors who have resented LMI in the past, take another look. It could prove to be a valuable tool that can help you achieve your goals much sooner than you thought.
Albertus Waldron is finance strategist and partner at<a target="_blank" href="https://www.chan-naylor.com.au/"> Chan &amp; Naylor</a>
 
 
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How buying lenders mortgage insurance can allow you to grow your property assets faster

A new chapter in Sydney’s urban renewal story begins today as NSW Premier Chris Minns officially turns the sod for Dawn, the fifth stage of Sekisui House Australia’s $5 billion <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> masterplanned community.

Developed in partnership with Hankyu Hanshin Properties and built by <a href="https://www.apartments.com.au/builders/decode">Decode</a>, <a href="https://www.apartments.com.au/new-apartments/dawn-melrose-park-bundil-boulevard-melrose-park-nsw-2114">Dawn</a> will deliver 368 parkside residences, forming part of one of NSW’s largest privately owned urban renewal projects.&nbsp;

The milestone marks the start of the next phase in transforming Melrose Park into a new community delivering over 5,500 homes, a mixed-use town centre, 50,000 sqm of open green spaces and several future schools.

[smartcode_project:default project_id=145496 project_image_fid=352993]

Kazunori Ito, Group CEO and Managing Director at <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a>, said the milestone symbolises the company’s ongoing commitment to job creation, housing supply and sustainable community building.

“This moment represents more than just the start of construction," Ito said.

"It is about building a new urban heart for Sydney’s geographic centre. Dawn and the wider Melrose Park masterplan will generate thousands of jobs, deliver quality homes for families and help more people realise the dream of home ownership.

“We are proud to be supporting the NSW government’s housing targets and expanded Home Guarantee Scheme, which came into effect on 1 October. The program is already opening doors for more first home buyers at Melrose Park, many of whom are using the scheme to purchase with a five per cent deposit and no Lenders’ Mortgage Insurance.”

[smartcode_project:default project_id=145496 project_image_fid=334163]

Since its introduction, the enhanced federal government’s Home Guarantee Scheme has given first home buyers greater access to the property market. With value thresholds in New South Wales now lifted to $1.5 million, buyers can secure a new apartment in Melrose Park sooner, reducing the burden of saving a 20 per cent deposit and removing costly mortgage insurance premiums.&nbsp;

The Dawn precinct, designed by <a href="https://www.apartments.com.au/architects/group-gsa">Group GSA</a> embodies Sekisui House’s global “Love of Humanity” philosophy, integrating sustainability, technology and liveability into every design detail. Residents will enjoy abundant green space, energy efficient features and a direct connection to the future Parramatta Light Rail Stage 2 and Melrose Park Town Centre set to open in 2026.

[smartcode_project:default project_id=145496 project_image_fid=354734]

As part of the NSW government’s long-term commitment to the local community, work recently commenced on the new Melrose Park High School, a state-of-the-art education facility designed to accommodate more than 1,000 students. The school will be within walking distance to Dawn and will become a cornerstone of the precinct’s family friendly environment.

Melrose Park’s smart community vision includes EV charging stations, environmental monitoring systems with Western Sydney University and NBN node to residence connectivity. With over $216 million in planning contributions committed to local and state infrastructure, this project supports NSW’s 30-minute city goal, ensuring residents can live, work and play within easy reach of key employment and lifestyle hubs.

[smartcode_project:default project_id=145496 project_image_fid=334049]

Dawn’s contemporary residences all have secure basement parking and start at $649,000 for a one-bedroom apartment and $1.259 million for three-bedrooms.&nbsp;

The project will also overlook Central Park which spans nearly two hectares and features barbeque and picnic areas, children’s play zones and walking tracks ideal for active residents and pets.

Residents will enjoy exclusive rooftop community facilities including private rooftop gardens, beautifully landscaped podium parks and internal courtyard gardens.

Construction of Dawn, which is being led by regarded builder Decode, will be completed by Q1 2028, adding to Sekisui House’s pipeline of more than 9,000 homes and apartments under development across Australia.

[smartcode_project_cta:default project_id=145496]

Staff Writer

Premier Chris Minns turns sod at Dawn Melrose Park as construction commences

Southport is set for one of its tallest new apartment developments in recent years with the approval of Malua, a 32-level tower just one row back from Broadwater.

The <a href="https://www.apartments.com.au/new-apartments/malua-18-22-norman-street-southport-qld-4215">Norman St tower</a> will comprise 151 apartments within the Southport Priority Development Area. The three adjoining lots, totalling 1,215 sqm, are currently occupied by three two-storey buildings, one a house, and two duplexes.

The majority of the apartments will be two-bedders (126), with just five one-bedroom apartments and 20 three-bedrooms. There will be three basement levels, three podium levels, and a rooftop communal space with a pool, gym, private dining areas and business hub facilities.

<img alt="Malua" data-entity-type="file" data-entity-uuid="21ab3437-de39-432c-b991-f33227b606dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.41.37%E2%80%AFAM.png?VersionId=_dOcjcvmSMyn6utzzviBVCAgDp5ZCo_N" />

There had been prior approval for a 14-storey building, however those plans became financially unviable.

“The proposed development seeks to resolve financial viability issues of the existing development approval by providing a higher density development with a more favourable unit mix and streamlined design,” the planning report submitted to the Gold Coast City Council noted.

Plus Studio designed the tower which "aims to contribute positively to the evolving Southport skyline, with vertical relief elements, sculpted facades, and rooftop crowning features."

&nbsp;

&nbsp;

“When stepping into the lobby from Norman Street, pedestrians and residents pass through a sculpted podium of lush green foliage in an earthy entry experience,” Plus wrote in its design report, emphasising the landscape-led approach to the podium and ground plane.

&nbsp;

<img alt="Malua" data-entity-type="file" data-entity-uuid="694202c2-be8f-4cde-be26-a494293058a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.42.15%E2%80%AFAM.png?VersionId=NOIFuolMkoE8vNerov63rnbFRk_TnYUy" />

There is renewed confidence in the development market in Southport. Buyers have jumped at the chance to buy at <a href="https://www.apartments.com.au/new-apartments/maris-southport-20-queen-street-southport-qld-4215">Maris</a>, the latest local Gold Coast development by MRCB. Over 75 per cent of the 192 apartments have been snapped up prior to launching to the market.&nbsp;

The last notable launch in the suburb was in late 2023 when <a href="https://www.apartments.com.au/new-apartments/eden-garden-residences-20-bauer-street-southport">Eden Garden Residences</a> hit the market. The 54 apartments, on the corner of Bauer Street and Chester Terrace, are under construction and due to complete in mid-2026.

Joel Robinson

First look: Southport tower Malua to rise 32 levels in latest Gold Coast approval

Woolworths Group’s development arm, <a href="https://www.apartments.com.au/developers/fabcot">Fabcot</a>, has unveiled its latest mixed-use development.

They are seeking to reshape a prominent site in Gladesville, on the northern edge of the town centre. They've filed a&nbsp;State Significant Development Application for the amalgamated 5,623 sqm block with street frontages to Victoria Road and Eltham Street that will see <a href="https://www.apartments.com.au/new-apartments/363-victoria-road-gladesville-nsw-2111">two buildings with 171 apartments</a> sit above an activated retail ground plane.

The tallest tower, at 13 storeys, will face Victoria Road and home 115 dwellings. A smaller nine-sytorey tower, stepping down to Eltham Street, will have the remaining 56 apartments.

The towers will rise above a podium containing a full-line 3,800 sqm Woolworths supermarket and cafe, activating along the Westminster and Eltham Street frontages.

<img alt="Fabcot" data-entity-type="file" data-entity-uuid="da042a40-288e-41b8-becc-080f235a3717" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.13.26%E2%80%AFAM.png?VersionId=n99ay71Clcy6WLP4Uajw2ph6BA61wboV" />

The residential offering will include 19 one-bedroom, 118 two-bedroom, and 34 three-bedroom apartments. Residents will have access to rooftop communal terraces on both buildings, as well as a podium-level garden, contributing a total of 1,411 sqm of communal open space.

According to the Urban Design Report by <a href="https://www.apartments.com.au/architects/clarke-hopkins-clarke">ClarkeHopkinsClarke</a>, “The massing places height and density along Victoria Road, reinforcing its role as the commercial spine, while stepping down towards neighbouring areas to ensure appropriate scale transitions.”&nbsp;

The design draws inspiration from the local geology and waterways, with curving tower forms and a warm, tactile material palette referencing Hawkesbury sandstone and nearby riverine landscapes.

The proposal also includes basement parking across three to four levels, accommodating 392 car spaces - 190 for retail and 202 for residents.

<img alt="Fabcot" data-entity-type="file" data-entity-uuid="f1a01073-9a13-4ba7-9c14-43c84a751e26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.13.51%E2%80%AFAM.png?VersionId=KSImA_iSQiIgSRMswm7.5Sg.WRZ0fZjg" />

Fabcot is aiming to deliver a “landmark building with civic presence,” leveraging the prominent corner site to anchor the precinct’s urban renewal.

“The building’s corner location and carefully sculpted form establish it as a landmark for North Gladesville,” the Urban Design Report notes.

ClarkeHopkinsClarke has previously collaborated on other Woolworths mixed-use projects, and here again deploys stepped setbacks, articulation, and extensive landscaping to manage bulk and enhance street-level engagement. A colonnaded brick base provides texture and rhythm to the podium, while upper levels curve softly to maximise views and cross-ventilation.

The development sits within the North Gladesville Precinct, an area earmarked for transformation under Ryde’s local planning strategy. It is well-served by bus connections along Victoria Road and within proximity to community infrastructure, schools, and riverside parkland.

Gladesville is set for a full transformation with developer Third.i also planning a major mixed-use development in the area. They are seeking to redevelop the Gladesville Village Shopping Centre into an&nbsp;integrated precinct with more than 500 apartments, a new supermarket, and significant public domain upgrades.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-third-i-plots-500-unit-redevelopment-of-gladesville-village-shopping-centre">First look: Third.i plots 500-unit redevelopment of Gladesville Village Shopping Centre</a>

Fabcot reveals mixed-use plans for Gladesville town centre

<a href="https://www.apartments.com.au/developers/omaya">Omaya</a> has brought to market a boutique collection of completed, two-storey terraces on Telopea Avenue in <a href="https://www.apartments.com.au/developments/homebush-west-nsw-2140">Homebush West</a>, offering buyers the opportunity to move straight into brand-new homes in a connected inner-west location.

<a href="https://www.apartments.com.au/buildings/telopea-avenue-homebush-west-24-36-telopea-avenue-homebush-west-nsw-2140">Telopea Avenue</a> comprises four-bedroom terraces with internal basement parking, designed to balance functionality with contemporary interiors.

[smartcode_project:default project_id=150682 project_image_fid=6085]

Each residence is arranged across two levels, with layouts tailored to families seeking more space or downsizers wanting low-maintenance living without compromise. Skylights and large windows maximise natural light throughout the interiors, while private terraces and balconies extend living outdoors.

Inside, hybrid timber flooring flows through living and bedroom spaces, complemented by built-in wardrobes with polyurethane finishes and melamine shelving.&nbsp;

Kitchens feature Bianco Imperial Granite benchtops and splashbacks, paired with Smeg appliances including a five-burner gas cooktop, oven, rangehood, and integrated dishwasher.&nbsp;

Bathrooms continue the refined detailing with porcelain tiling, granite accents, gun metal tapware, and integrated LED lighting.

[smartcode_project:default project_id=150682 project_image_fid=6072]

Landscaped surrounds create a sense of greenery within the community, while individual home designs ensure each terrace retains its own character.

Positioned within a quiet residential pocket, the project sits only minutes from the activity centres of Strathfield, North Strathfield, Homebush, and Lidcombe, as well as the broader lifestyle and employment precinct of Sydney Olympic Park.

Residents also benefit from the project’s proximity to transport and amenity. Homebush and Flemington stations provide direct rail access to the Sydney CBD, with major road connections including Parramatta Road and the M4 close by.&nbsp;

[smartcode_project:default project_id=150682 project_image_fid=6064]

Local shops, Sydney Markets, and Strathfield Plaza cater to daily needs, while the area is well-serviced by schools, childcare centres, and universities.&nbsp;

Nearby Sydney Olympic Park and Bicentennial Park add further lifestyle appeal, offering walking trails, sports facilities, and year-round cultural events.

The terraces are delivered by Omaya, a family-run Sydney developer and builder with more than 35 years of experience and over 1,000 dwellings in its pipeline.

[smartcode_project_cta:default project_id=150682]

Omaya delivers complete and move-in ready terraces on Telopea Avenue, Homebush West

Melbourne-based developer&nbsp;<a href="https://www.apartments.com.au/developers/las-group">LAS Group</a> has this month received planning approval for two adjoining sites, 101 Clarendon Street and 38 Clarke Street in Southbank, that will add around $700 million to the developer’s pipeline on completion.

The two sites were purchased from Crown in 2023 and occupy the same city block as the iconic Casino complex, acquired in an on-market transaction, consisting of multiple titles that were being used as warehouses and low-rise office space.

The resulting permits will see the delivery of two towers consisting of 52 and 25 levels, both to be designed by Fender Katsalidis.

LAS Group’s successful planning approvals are among only a select few new development sites in Southbank to receive a permit in the last three years, as appropriate sites become even more scarce in the popular city-side location.

The projects will enjoy immediate walking access to Crown Casino, South Wharf, the Aquarium, Southbank and the wider Yarra River walk precinct that features a plethora of restaurants, bars and other hospitality and entertainment offerings.

The Fender Katsalidis-designed towers will feature intricate brick masonry and arched windows at street level that will add character to the Southbank streetscape, with sleek towers rising above each podium.

The larger of the two towers, <a href="https://www.apartments.com.au/new-apartments/101-clarendon-street-southbank-vic-3006">101 Clarendon Street</a>, will have 509 apartments across a 52-level building that wuill also include a resident&nbsp;lounge, private dining room, podcast room, golf simulator, co-working spaces, pet care facilities, and an outdoor terrace.

That is expected to complete in 2029.

<img alt="Clarendon" data-entity-type="file" data-entity-uuid="9d8595a7-d225-4532-86a9-d3c5ca7407d4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-05%20at%208.28.51%E2%80%AFAM.png?VersionId=quwbfnhk5Vf6yR1Qj0GQtt0EjeIsKMci" /> 
The podium at 101 Clarendon Street. Image supplied

The smaller tower at <a href="https://www.apartments.com.au/new-apartments/36-42-clarke-street-southbank-vic-3006">38 Clarke Street</a> will be around half the size at 25 levels and home 188 apartments, a pool, gym, cold plunge, and sauna. That is expected to complete in 2028.

&nbsp;

LAS Group has a long history of developing key sites across Australia, including The Fawkner on St Kilda Road and Guild Apartments in Southbank, as well as holding significant interests in retail, mixed-use and storage facilities across Australia.

<img alt="38 Clarke" data-entity-type="file" data-entity-uuid="d871b034-d2a4-490f-b9eb-b9d4b99a04c5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-05%20at%208.28.44%E2%80%AFAM.png?VersionId=J3fWfemsLPQzXekl_h0QlsXoWFnRbfRF" /> 
38 Clarke Street, Southbank. Image supplied

LAS Group director and founder Les Smith said the planning approvals had come at a time when confidence was returning to the market and the need to deliver quality apartment stock in Melbourne’s inner suburbs was becoming critical to help ease the housing and affordability crisis.

“These planning approvals are the outcome of a collaborative process with multiple stakeholders and we are grateful for the involvement and support of Melbourne Water, the Department of Transport and Planning, Melbourne City Council and Property Council of Australia along the way," Smith said.

“We have a huge affinity for Melbourne believe the macro and micro economic factors that underpin long-term growth mean it is currently undervalued compared to other capital cities around Australia.

“Confidence is starting to return given the recent interest rate drops and the buoyancy in the economic climate, so we believe the time is right to bring these two new projects to market in the coming months."

LAS Group General Manager, Mia Smith said the design intent was to bring a sense of place to Southbank from the ground level and contribute positively to the thriving entertainment precinct, while delivering good quality, affordable stock to the market.

“These projects will deliver product that is affordable and accessible, while delivering a beautiful building with luxury appointments, in a wonderful location that’s next door to Crown Casino and the Southbank entertainment precinct, and on the doorstep to the CBD," Smith said.

“We are incredibly pleased with the designs that Fender Katsalidis have proposed and we are excited to make a positive impact to the urban design of this important pocket of Southbank with these exceptional design outcomes.”

Albertus Waldron

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