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GUEST OBSERVER
Property prices will rise next year, despite some plateauing in recent weeks.
The late 2015 Melbourne property market has been a remarkably balanced affair in terms of the relative power of buyers and sellers. Supply has been strong, with a record number of 1000-plus auction weekends. But there has also been enough buyers out there to soak up the supply. Only just though, as evidenced by the lack of price movement since the end of winter.
After the strength of the market over the preceding three years, it is tempting to extrapolate this result as the turning point downwards for the market. But I suspect there is some more capital growth to come off the back of residual momentum.
Come late February 2016, when the property auction market reopens, I expect buyers will once again outnumber sellers.  This is a common seasonal characteristic of the early autumn market, just as there tends to be a glut of sellers in the late spring market. 
Buyers are typically ‘ready and keen’ to buy sooner in the calendar year after the long summer holidays than sellers.
There are of course headwinds for the market: a strong pipeline of new properties, especially apartments, adding to supply; tighter prudential lending rules making borrowing slightly more expensive and scarce; overseas buyer demand is moderating after a strengthening of foreign investment rules; falling rental yields; and, not least, the impact of three years’ capital growth on affordability.
On the other hand, interest rates remain at a historically low level and an interest rate rise is a distant likelihood. Even with softer rental yields, prospective investors enjoy an unusually small ‘funding gap’ – the difference between their borrowing costs and the net rental return.
Allied to this, participation in the market is likely to be supported by the relatively benign economic conditions: stable unemployment, low inflation and reasonable consumer confidence.”
Winter Blues?
The outlook becomes more uncertain in the second half of 2016.
By June 2016, it will be 15 quarters, or just under four years, since the start of the latest upswing in Melbourne property prices. That’s an impressive run. It is almost inevitable that there will be a pause or even a downturn at some point in the not too distant future. 
However, should it turn out that we are not at the bottom of the Reserve Bank’s cash rate interest rate reduction phase – which may be the case given that few of us would have predicted even a year ago that the cash rate would go as low as today’s 2% – then price growth may persist, albeit modestly, across 2016.”
Where will prices be in 2026?
Although fun to crystal ball gaze into 2016, thinking about where prices will be in ten years’ time – in 2026 – is more worthwhile.
Ultimately, if you’re planning to invest in property next year, it should be with the intention to stick with that asset for at least seven years and ideally ten.  Over that longer time frame, prices are far less volatile and more predictable than they are year-to-year.  Choose a great asset and I can’t tell you whether it will rise or fall in value next year, but I’m very certain it will double in value after 10 years.
By great assets I mean established one- and two-bedroom apartments and two-bedroom period-style houses on quiet, attractive residential streets in inner suburban Melbourne that are proximate to transport, village-type shopping strips, schools and health facilities. Select older-style architecture and all units should have dedicated off-street parking and be in blocks containing no more than around 20 apartments.
What to avoid in 2016
Whilst it is difficult to call when the market will turn, there are certain parts that should be avoided in 2016.
The Federal Government has been vigorous over recent months in putting in place and policing measures that address widespread non-compliant property purchases by non-residents. Whilst a small proportion of buyers overall, overseas buyers were sufficiently concentrated in some school-belt Melbourne eastern suburbs to push prices beyond fair value.  We anticipate that there may be a pullback in prices in suburbs such as Balwyn, Box Hill and Mont Albert in 2016, as these markets adapt to a fall in demand.
The high rise multi-apartment sector in our CBD and surrounds will almost certainly struggle under the weight of a massive pipeline of new properties expected to flow into the market over the next 12 months. It’s hard to have a good word to say about a sector where so many buyers are marketed a dream and sold a nightmare. 
But let me try: If making money is not your goal and you want to be in the city, then you may be able to buy an affordable high rise apartment in 2016. But make sure you buy it second hand.  You’ll probably secure a 20%-plus discount on the price of new apartments because you’re not paying for a developer’s marketing costs and you’re dealing with a vendor who cannot sell it to overseas buyers because it isn’t new.
Paul Nugent is a director of <a href="https://www.wakelin.com.au" target="_blank">Wakelin Property Advisory</a>, an independent firm specialising in acquiring residential property for investors.
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jchancellor-FAypfDUnLy

Further growth for Melbourne property prices in early 2016: Wakelin's Paul Nugent

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Those Stenmark twins look set to untwine just a little.
Model Zac Stenmark is on the move looking to buy a place so he won’t be living with his brother, Jordan.
They’ve never lived separately, spending most of their time growing up in Mosman and weekending at Palm Beach.
They still expect to see each other every day.
"We just won’t be in adjoining rooms,’’ they were heard telling friends at last weekend's opening of the Rolex boutique at Crown Towers in Melbourne.
‘‘We’ll be saying ‘Good night’ over the phone instead of through the wall,’’ Jordan Stenmark said. 
The guys say they don’t have a telepathic connection.
This article was first published in the Sunday Telegraph.
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Model Zac Stenmark looking to buy in Sydney 

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The advance of Airbnb vacation accomodation across inner Sydney has been one of 2015's defining property trends. For Del Rio, the divine Elizabeth Bay residential building, the onset has been via the Terry Kaljo classy online tourism booking outfit, Contemporary Hotels.
The garden apartment of Melanie Greensmith who runs the clothing label, Wheels and Dollbaby, with her partner Mark McEntee, former guitarist in the Divinyls, has turned up as <a href="https://contemporaryhotels.com.au/accommodation/sydney/the-del-rio" target="_blank">a $1,200 a night accommodation offering.</a> More than double that price over the Christmas period for the garden apartment in the landmark Spanish Mission block of five.
Seems like even the grandest of company title apartment blocks can't withstand the disruptive onslaught of short term Rimowa luggage laden, internet arrivisites. I recall the days when it was nigh impossible to come or go from Del Rio without tripping over the walking stick of Lady (Eileen) Noad, who'd watched all from the street-level foyer, with a conversation thrown in too. 
Located on the Billyard Avenue dress circle harbourfront with Moorish mosaic-tiled pool, Del Rio dates back to its 1928 design by John Spencer-Stransfield, who is more famously known for designing Sydney's finest Federation suburb Haberfield.
Attracted by the Chateau Marmont style arches, Greensmith, the Perth based fashion entrepreneur, bought it in 2013 about $4.25 million from Charles Wilkins, a leading Sydney caterer. He'd had the late designer Garth Barnett undertake the renovation from its original layout - with the third bedroom maid’s quarter - into two large comfortable bedrooms with two marble-finished bathrooms.
"Mixing old Hollywood glamour with contemporary features and facilities, The Del Rio celebrates the best of Sydney’s lifestyle and culture," says the booking website. Contemporary Hotels was established by former model turned hospitality pioneer Terry Kaljo whose son, Matthew Fleming now handpicks the website's short term rental selections.
It's the Billyard Avenue block briefly on the radar of Hollywood's then first couple Tom Cruise and Nicole Kidman who inspected when one of the tightly held apartments came up for sale back in the mid-1990s. The block's top floor is home to executive deputy chairman of Crown John Alexander and his photographer wife, Alice.
There's neighbourhood whispers that former Fairfax board member and former chief executive of Louis Vuitton, Julia King, and her husband, Peter have recently sold their apartment for around $6.5 million.
This article was first published in the Saturday Daily Telegraph.
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New life for Elizabeth Bay's Del Rio through tourism

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The former Wallaby Stephen Lidbury and his wife Joanne have upgraded Mosman homes as the Mosman merry-go-round gains some renewed momentum. 
Lidbury, who played in 1987 tour of Argentina and against England in their 1988 tour of Australia, has spent $6.3 million. 
The <a href="https://www.realestate.com.au/property-house-nsw-mosman-120456953" target="_blank">five bedroom family home</a> last traded at $5.7 million in 2008, with the latest price returning to its 2006 price level, given the global financial crisis knocked Mosman about leading to low sales activity. 
They sold their Federation home on Countess Street for $3.2 million recently.
Lidbury, the formidable Warringah player, is a director of the cleaning and security services specialists company, Millennium Hi-Tech.
This article was first published in the Saturday Daily Telegraph.
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Former Wallaby Stephen Lidbury buys in Mosman

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The Mornington Peninsula property, Fargeet at Flinders, has been listed for December expressions of interest sale.
<a href="https://www.abercrombys.com.au/flinders-485-meakins-road-ab2767/">Abercromby’s agents Tim Bennetts and Jock Langley</a> has $9 million plus hopes for the property with gun-barrel views of Bass Strait.
The contemporary 2003-built home sits on a rise overlooking the ocean.
b.e Architects designed the house which builder Gary Hutchins sold the 37 hectare property in 2008 for $6.53 million to the Bittar family.
Offers close on December 14.
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Mornington Peninsula's Fargeet listed for sale

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There have been fewer cases of underquoting and more cases of overquoting as the Sydney auction market softened during the bumper spring and into summer.
Underquoting had been rife for a while as many disappointed buyers missed out of their desired purchase during what was been an especially fast rising market. It has been subject to fresh legislation enforced from 2016 onwards.
But overquoting by agents to potential sellers is something of a sleeper issue as it typically relates to the private discussions between the vendor and their agent.
Overquoting is typically referred to as an agent securing the auction listing by misinforming the vendor that their property will sell for a lot more than what the market is likely dictating at the time.
Vendors who choose an estate agent solely on their suggesting the highest likely selling price of the property, will run the risk of ending up with a home that went unsold this spring. Or at least very grumpy as the agent seeks to lower the auction day price expectations to match the emerging weaker market conditions.
Any inflated auction price indications given by the listing agents saw the property passed in with the property possibly left sitting on the market until its agency listing expires possibly in the new year.
Expertise of estate agents, albeit trickier in a turning market, is to sense the probable and best selling prices of any prospective listing. 
They do themselves, their vendor and the market a disservice if they over inflate the likely sale price estimate to simply secure the listing.
Agents ought be familiar enough with the suburb and property type to get the buying market interested, not shaking their head in disbelief.
Ofcourse auctions are designed to get the vendor the best price on the day and that depends on a few things - demand on the day, the depth of bidder interest, how much they are prepared to spend, comparable homes that have sold or are for sale and, finally, what the vendor wants.
Most prospective vendors call in two or three local agents to get their own property appraisal ahead of the auction marketing. Yes a vendor wants to achieve the highest possible price for their property and too many vendors will base their decision on which agent to select based on the price forecast alone.
But in order to win the listing and win their vendor’s confidence agents ought be able to substantiate their property forecast.
The agents ought provide the most updated of sales in the neighbourhood, reports known as comparative market analysis (CMA). These reports can analyse and compare properties with the predictive price functionality. 
With just two weekends to Christmas, the Sydney auction housing market is tentatively poised and vendors won't want an unsold property over the long summer break.
There can be nothing worse as the weeks pass, unable to sell your property, of you getting tired of having the house on the market.... let alone the florist bill.
As the home sits on the market for so long, possibly without price change, it can start to appear cheaper in the eyes of ever vigilant, but keen buyers.
Of course price assumptions are not just not mathematical or scientific desktop calculations — the best agents work on the emotion of human buying behaviour. And that's when ambitious hopes can be sometimes realised despite contrary market conditions and comparisons.
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Overquoting to potential sellers the sleeper issue

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The Melbourne model Megan Gale pulled her Palm Beach getaway from recent scheduled auction, unable to find any $3.5 million plus buyers in the somewhat over-saturated northern beaches market.
Gale has owned <a href="https://www.realestate.com.au/property-house-nsw-palm+beach-120894541" target="_blank">the two level Ralston Road property</a> since late 2006, buying it for $3.2 million in her mother May’s name.
There are 50 Palm Beach houses advertised on realestate.com.au.
Her five bedroom, five bathroom home was purchased after she returned from her seven-year modelling stint in Italy.
Offered with approval for an extension, its has been renovated over recent years.
Set in the shadow of the watertower, it has views to the Barrenjoey Lighthouse.
It was listed through Century 21 Avalon agent Stephanie Hammond with expectations of more than $3.5 million.
Any sale with see Gale empty her Sydney property portflio as Gale’s Tamarama property was sold in 2012 for $3 million, and her former Bondi Beach home sold in 2007 for $1,025,000.
This article was first published in the Sunday Telegraph.
 
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No buyer found for Megan Gale's Palm Beach getaway

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GUEST OBSERVER
We’re launching into yet another silly season, and there will no doubt be the annual holiday splurge – in fact, one estimate puts our nation’s Christmas spending to be around $8.9 billion.
And that’s on gifts alone! There is, however, a ray of hope for your back pocket: with variable interest rates on the move this month, you have even more opportunity to shop around for a better rate. On the off-chance that these rate rises continue, an offset can provide even more control over your loan by letting you slice interest off repayments based on your hard-earned savings.
Here are the lowest home loan rates on finder.com.au that also allow a 100% offset account.
finder.com.au’s lowest variable home loan rates with a 100% offset account
<a href="https://www.finder.com.au/mortgage-house-summer-home-loan-review" target="_blank">Mortgage House Summer Home Loan</a>: 3.94%
With no application or ongoing fees, plus redraw facilities on top of your offset account, this home loan can provide some key cushioning for potential homeowners. Just be aware that you’re also signing up for a $395 legal, $200 Settlement and $450 discharge fee.
<a href="https://www.finder.com.au/boq-clear-path-rate-variable-home-loan#14747" target="_blank">Bank of Queensland Clear Path</a>: 3.99%
The Clear Path home loan will allow you to borrow up to 95% of the property’s value, while also waiving application fees and allowing for free redraws and repayments, which could pad out your mortgage nicely. You will have to crank the budgeting up a notch however, as you’ll then be factoring in a $10 monthly fee and a once-off settlement fee of $150. It’s advised you take some time to sit down and calculate the lifetime costs and benefits of your mortgage, especially in the case of revolving expenses. 
<a href="https://www.finder.com.au/bankwest-complete-home-loan-package-variable#10460" target="_blank">Bankwest Complete Home Loan Package</a>: 4.08%
Let it be said from the get-go that this is a package deal, which usually entails an additional expense of some sort – in this case it’s a considerable $395 annual fee. This might be offset in the first year by no application or legal fees, and its split options, redraw and extra repayment facilities could be enough to pull this loan over the line for you. When it comes to considerable annual fees, it’s a good idea to make sure there’s enough funds sitting in your offset account to negate the rolling expense by the time it hits every year.
finder.com.au’s lowest variable home loan rates with a 100% offset account
<a href="https://www.finder.com.au/beyond-bank-total-home-loan-package#12549" target="_blank">Beyond Bank Total Home Loan Package</a>: 4.09%
Perhaps just as powerful as a 100% offset account is the ability to also make free repayments, and this loan allows the best of both worlds. You can also borrow up to 95% of the property value, along with the ability to redraw funds should your financial standing get shaky. Again, this is a packaged home loan, and you will be slugged with a $395 annual fee, which will be exacerbated in the first year by a $150 settlement fee.
<a href="https://www.finder.com.au/mortgage-house-100-offset-fixed-rate-home-loan-review#13193" target="_blank">Mortgage House 100% Offset</a>: 4.39%
Nothing says freedom like no monthly or annual service fees – which is something recipients of this loan will experience. There is also no application fee tied to this loan, and you will be able to make additional repayments and be able to redraw. Just make sure you have some funds available at all times, as the $200 settlement fee will hit you in the earlier stage of the loan, while the $450 discharge fee will come around at the tail-end of the loan.
<a href="https://www.finder.com.au/st-george-fixed-rate-home-loan#1035" target="_blank">St. George Fixed Rate</a>: 4.44%
This loan comes with a waived legal and valuation fee, along with the ability to split your loan and make extra repayments and redraws. That being said, there are some serious fees that come with this product, including a $600 application, $10 monthly service, $100 settlement and $350 discharge fee. This loan could be your best option – but without doing your homework first, these fees could drown your budget and leave your head underwater for the next 30 years. Tread the water carefully!
Bessie Hassan is consumer advocate at <a href="https://www.finder.com.au" target="_blank">finder.com.au</a>.
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3.94% Mortgage House Summer special tops Finder's December home loans roundup

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Sea-changing is a long-held Australian tradition for retirees and empty nesters, however property expert John McGrath believes the next wave of sea-changers will be young families leaving Sydney for good.
In John's recent Switzer blog article, he cited the annual McGrath report and highlighted how Sydney families have previously adapted to rising house prices by moving to less expensive commuter areas like the Central Coast and Wollongong; or buying apartments over houses in Sydney.
"Family apartment living was a significant trend in the early 2000s but today, average Sydney apartments are more expensive than houses anywhere else in Australia and many families are tired of feeling stretched," he said.
"We believe a desire for an easier, more affordable lifestyle will contribute to a growing contingent of families leaving Sydney altogether."
McGrath suggested that some families are still willing to commute, with our offices reporting more Sydney buyers on the Central Coast and in Newcastle and the Southern Highlands this year.
He backed the statement up by referring to the Australian Bureau of Statistics census figures, which showed a rising number of new residents in Newcastle, the Central Coast and Wollongong who have moved from other parts of NSW (typically Sydney) since 2001.
McGrath added that Brisbane, the Sunshine Coast and Melbourne are also proving popular with Sydney families looking further afield for even better value for money.
"Many are relocating to Melbourne, with Bureau of Statistics data showing the highest net interstate migration in 40 years in Victoria last year with the majority of interstate migrants coming from NSW."
He also suggested that a change in employment practices is also facilitating the trend in young families leaving Sydney.
"An increasing number of businesses are allowing their staff to work from home, especially those with specialised skills who can negotiate working away from the office into their contracts because their abilities are so highly sought-after," he said.
There is also a rising number of families with one parent working in a fly-in, fly-out job, particularly in the mining sector, which gives them the freedom to set up their home base in any location that has an airport as they simply don’t need to be in Sydney.
The article indicates that more empty nesters are shunning the sea-change in favour of CBD living, which is reflected in forecasts that retirement age residents will be the fastest growing group in the City of Sydney LGA (local government area) by 2026, up 72% on 2011 compared to an increase of 34% in working age residents, according to population analysts, forecast.id.
McGrath suggest that delayed retirement post-global financial crisis is contributing to this trend.
"There is a desire for lower maintenance living close to work; providing childcare for their grandkids; and an inner city construction boom providing an abundance of high quality options for a generation that wants to enjoy the next phase of their lives in security and comfort.
"The global NORC phenomenon (Naturally Occurring Retirement Communities) is expected to evolve in Sydney, with more apartment buildings not actually designated for seniors gradually developing a predominately older community as existing owners ‘age in place’ and downsizers move in."
He concluded by stating that his offices are observing more empty nesters from Sydney’s Eastern Suburbs and Upper North Shore downsizing to the Inner East, Inner City and Inner West.
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Sydney families to flee for sea-change: John McGrath

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GUEST OBSERVER
The last 12 months have been a roller coaster ride for SMSF limited recourse borrowing arrangements. I thought I’d take the opportunity to re-cap what’s happened.
FSI
The biggest change — or more accurately the biggest non-change — is the government’s decision not to action the recommendation coming out of the Financial System Inquiry.
The final FSI report — released in December 2014 — had recommended that the government:
[r]emove the exception to the general prohibition on direct borrowing for limited recourse borrowing arrangements by superannuation funds.
More specifically, it stated:
Government should restore the general prohibition on direct borrowing by superannuation funds by removing Section 67A of the Superannuation Industry (Supervision) Act 1993 (SIS Act) on a prospective basis.
It described the problem as follows:
… growth in superannuation funds’ direct borrowing would, over time, increase risk in the financial system … the Inquiry notes an emerging trend of superannuation funds using LRBAs to purchase assets. Over the past five years, the amount of funds borrowed using LRBAs increased almost 18 times, from $497 million in June 2009 to $8.7 billion in June 2014.
Naturally, this was a cause for concern for many in the SMSF industry. Also, some felt that the recommendation unfairly targeted all LRBAs where only some or a minority posed any concern. Of course there are risks with any borrowing, but I have seen many SMSF trustees carefully plan and meticulously implement LRBAs which greatly added to an SMSF’s ability to provide retirement benefits. Such carefully thought out investments added only a commensurate amount of increased risk for the increased amount of return.
The recommendation was a particular concern for those SMSF trustees who had signed contracts to buy properties off-the-plan. With such purchases typically one must wait well over a year before the apartment is built and a bank is ready to execute loan documentation. If the government changed the law in the meanwhile, such SMSFs could have been left in a tricky position.
Luckily, the government has adopted a ‘wait and see’ approach. More specifically, on 20 October the government responded to the FSI as follows:
The Government does not agree with the Inquiry’s recommendation to prohibit limited recourse borrowing arrangements by superannuation funds.
While the Government notes that there are anecdotal concerns about limited recourse borrowing arrangements, at this time the Government does not consider the data sufficient to justify significant policy intervention.
Accordingly, LRBAs are still allowable … at least for the time being!
Bank policies
The last 12 months have seen a marked increase in difficulties in getting a bank to agree to lend to SMSFs. Some banks appear to flat out refuse to enter into new LRBAs for the acquisition of residential real estate. As at the date of writing, it is too soon to say with certainty, but due to the government not banning LRBAs (as set out above) it is hoped that the major banks will re-enter the residential LRBA market.
New tax legislation
The passing of the Tax and Superannuation Laws Amendment (2015 Measures No. 2) Act 2015 (Cth) was a positive change. It clarifies that a look through approach can be applied to the bare/holding trust that is a mandatory feature of LRBAs.
This new law inserted into the Income Tax Assessment Act 1997 (Cth) the concepts of an ‘instalment trust’ and an ‘instalment trust asset’. These include respectively an LRBA bare/holding trust and the asset that is owned via the bare/holding trust.
The legislation goes on to provide that where an investor (eg, an SMSF) has a beneficial interest in an instalment trust asset under an instalment trust, the asset is treated as being the investor’s asset instead of being an asset of the trust.
It gives the following examples:
<ul>
<li>A dividend in respect of the asset is paid to the instalment trust (ie, the bare/holding trustee). Under the new law the dividend is treated as if it had been paid directly to the investor.</li>
<li>A trustee of an instalment trust (ie, the bare/holding trustee) disposes of the instalment trust asset. Under the new law any capital gain or loss is made by the investor, not by the trustee.</li>
</ul>
Also, although the changes were inserted into the income tax legislation, they also extend to GST. For example, the recently inserted s 235 820(5) of the Income Tax Assessment Act 1997 (Cth) contains the following example:
If the trustee [of the instalment trust] has a net input tax credit under the GST Act, the [SMSF] must apply the credit to reduce the investor’s cost base for the instalment trust asset (even if the [SMSF] is not registered or required to be registered for GST purposes).
In truth though, many were not too excited by the passing of the Tax and Superannuation Laws Amendment (2015 Measures No. 2) Act 2015 (Cth) as it simply confirmed what has already been industry practice for many years.
Related party lending
Naturally, it is possible for the lender to an SMSF to be a related party.
In 2010, in Australian Taxation Office Interpretative Decision ATO ID 2010/162 the ATO stated that ‘there is no contravention of section 109 of the SISA if the terms [of a related party SMSF loan] are more favourable to the SMSF [than had the parties been at arm’s length].’
Then, the NTLG Superannuation Technical minutes of June 2012 record that the following two questions were put to the ATO:
If a related party lender offers a discounted rate of interest to an SMSF under a section 67A borrowing arrangement, would the discount be considered a contribution received by the SMSF?
Can an SMSF enter into a borrowing arrangement … with a related party if a zero rate of interest is charged by the related party lender and only principal repayments, with no imputed interest, are made throughout the loan term in accordance with the loan agreement?
The ATO answered both in terms favourable to taxpayers (ie, no to the first and yes to the second).
Further, in the general NTLG minutes of December 2012, the ATO stated:
The ATO position on low rate loan arrangements and LRBA is that that they do not generally invoke a contravention of the SISA, do not give rise to non-arm’s length income under section 295-550 of the Income Tax Assessment Act 1997 (ITAA), do not invoke Part IVA of the ITAA 1936 and are not considered to give rise to contributions to the SMSF just from that one fact alone.
Accordingly, many had read this as being a ‘carte blanche’ for low — or even nil — interest related party LRBAs. At DBA Lawyers we had never been a fan of such arrangements and of course ATO comments in NTLG minutes are not binding.
Then, in December 2014 the ATO released Australian Taxation Office Interpretative Decisions ATO ID 2014/39 and ATO ID 2014/40. These both considered related party LRBAs with nil interest being charged and both stated that the ATO’s view is that the arrangements did give rise to non-arm’s length income.
Accordingly, the position that DBA Lawyers has long been in favour of is now broadly well accepted by all, namely, that related party LRBAs should be on the same terms that would be agreed with an arm’s length lender.
Conclusion
The last year has shown that LRBAs are here to say (at least for the foreseeable future), but we must be just as careful as ever in their set up. This care includes ranging from ensuring that a bank will lend, up to ensuring that — where there is a related party — the terms of the loan are reflective of what is arm’s length.
This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.
 
Bryce Figot is a lawyer at DBA Lawyers and <a href="https://www.dbalawyers.com.au/" target="_blank">can be contacted here</a>.
 
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Recap on SMSF limited recourse borrowing arrangements

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.

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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.

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Joel Robinson

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.

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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]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

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The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

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The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

[smartcode_project:default project_id=134800 project_image_fid=370647]

The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

[smartcode_project:default project_id=134800 project_image_fid=372541]

The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

[smartcode_project:default project_id=134800 project_image_fid=351535]

Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

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Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

[smartcode_project_cta:default project_id=135247]

Jonathan Chancellor

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