<html><body>
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>. 
</body></html>

awaldron-dVhPXocinv

What’s wrong with just going to the bank I have been with for years?

<html><body>
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>.
</body></html>

Why lenders are negative about positively geared property

<html><body>
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>.
</body></html>

Changing lending policies are opening up fantastic opportunities for some investors

<html><body>
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>
<ol></ol>
</body></html>

How your loan structure could be hindering your property investment potential

<html><body>
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>
</body></html>

How owner-occupiers and property investors can make the most of an RBA rate cut

<html><body>
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>
 
 
</body></html>

How buying lenders mortgage insurance can allow you to grow your property assets faster

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Albertus Waldron

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News