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Guest observeration
Recently I read two very different articles about our 'property markets'.
The first was an in depth piece by arguably Australia's most accurate property analyst, Michael Matusik. The <a href="/expert-insights/finance/unprecedented-low-interest-rates-wont-last-forever">second article</a> was attributed to the chairman of Century 21 Real Estate, Charles Tarbey. Both articles rammed home why the average Australian finds it difficult to know (let alone understand) what's really happening in 'the property market'.
Matusik suggested that "caution and common-sense" are the order of the day for owner occupiers and investors alike (along with investing for rental income of course).
Tarbey on the other hand declared that there was no bubble in Australian real estate, and that "we're in a very steady adjustment growth mode driven by the shift to a market where buyers and sellers negotiate a fair price". Caution and common sense?
Neither pundit addressed this point though: your bank has a dirty little secret (weapon) that they can't wait to use on you.
Our current low interest rates and housing shortage issues have lured thousands of people each week into paying 'whatever it takes' to get into a property, especially in Sydney and Melbourne. There's so much evidence of this that it's just plain scary.
Whether you like it or not, Sydney is the undisputed engine of Australia. Melbourne comes in second and not-so-sleepy Brisbane is third in line.
So let's take a close look at Sydney, shall we? With 4.35 million residents, the largest workforce, strongest Gross Domestic Product (GDP) and highest home prices in the nation. House prices (in Sydney and every other overheated market) are poised for a serious downward adjustment, not if, but when interest rates go back up from their current 50 year historical lows.
Most people flocking in to buy a home today don't understand that an interest rate of 6.70% isn't just a "bit more"; it's a whopping 37% extra interest each month.
How will life change for an average Sydney couple with a $400,000 mortgage currently and 4.89% interest rate? Their current monthly repayment is $2121 with an interest component of $1630; and they're paying the principal down by $491 a month. It will take them 30 years to own that home at that rate.
But what happens when their interest rate goes back to 6.70% - still well below the long term average?
Have a look at the 'smoke &amp; mirrors' their bank uses to hide its dirty little secret. Although the monthly repayment for our Sydney couple jumps by $460 to $2581, the interest component jumps by almost $150 more, from $1630 to $2233.
The interest component on their loan is now $112 a month more than their previous principal and interest repayment.
Their interest is now $603 higher, however their monthly repayment only increased by $460. Even though their monthly repayment jumped by almost 22% - the interest component jumped by 37%.
Hello, did you see that: they've gone from paying almost $500 a month off, to now only reducing the debt by just $348 each month.
Kiss that 30 year repayment period goodbye!
Score 1:0 to their bank, who win big time, with each rate rise working in their favour.
 This article continues on the next page. Please click below to continue.
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So I simply cannot agree with Tarbey's view. When people are competing in record numbers, for the few properties available, and prepared to pay above the odds to secure a place to call home, then common sense has gone out the window.
I know we're in a bubble right now, when real estate agents tell me that the house I bought for $680,000 just over five years ago would probably now fetch $1.1m.
I know we're in a bubble right now, when real estate agents tell me that they'll now accept "offers over $280,000" for the two bedroom units I was buying for investor clients 21 months ago for $200,000 - and their rents have either remained static or dropped $10 a week in the process.
I know we're in a bubble right now, because my house hasn't increased in value by over $500,000 or 73%. I know we're in a bubble right now, because those two bedroom units haven't increased in value by $80,000 or 40%.
I also know we're heading for a severe correction in those markets because:
<ul>
<li>This insanity is driven by an abundance of cheap money</li>
<li>The supply component is out of synch to match the demand caused by the abundance of cheap money</li>
<li>Money is the cheapest it's been in over 50 years because our economy is in trouble</li>
<li>Borrowing to the hilt because you can afford to pay whatever it takes for 'that' property based on today's interest rates is maybe the new definition of insanity</li>
</ul>
Michael Matusik, I think you're closer to the truth than even you might know.
What should you do right now? A couple of things, actually:
<ul>
<li>Get rid of all that credit card debt, personal loans, and any other high interest rate facilities</li>
<li>If you can't get rid of that debt, if you've got enough equity in your home consider rolling those debts into your home loan. Better still, roll them into a separate facility and pay it off over say three to five years</li>
<li>Seriously consider switching your home and/or investment property loan to either a three or five year Fixed Rate loan - sooner rather than later</li>
<li>Pay more than the minimum repayment on your home and/or investment property loans; in fact use these ridiculously low interest rates to pay as much extra as you can afford</li>
<li>Right now, the smartest thing you can do - for you - is to reduce debt fast. The lowest interest rates in five decades is your best chance to do this, probably in five decades.</li>
</ul>
 
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klee-LzAEhB2j7n

Your bank has a dirty little secret

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GUEST OBSERVATION
Six years ago McCrindle Research (one of Australia's leading research houses) predicted that by 2020 the Australian population would reach 24 million. At the time - 2008 - our population was 21.4 million.
Based on the Australian Bureau of growth statistics (2013), we're growing by:
<ul>
<li>one birth every one minute and 42 seconds,</li>
<li>one death every three minutes and 34 seconds,</li>
<li>a net gain of one international migration every two minutes and 14 seconds, leading to</li>
<li>an overall total population increase of one person every one minute and 20 seconds.</li>
</ul>
As I write this article in August 2014 Australia's population sits at 23.5 million (<a href="https://abs.gov/" target="_blank">abs.gov</a>). If my calculations are correct, we're growing by 395,188 people every year. By New Years Eve in 2020, we'll add another 2.371 million people to our population. Last time I checked ... 23.5 million plus 2.3 million equals 25.8 million.
We'll be 10% bigger at almost 26 million people. By 2020 we won't just reach 24 million - we'll have enough new blood to add another Adelaide, Hobart, Darwin, Canberra, Townsville and Cairns into the mix!
It's just "numbers" you say, but take note - these "numbers" will have a massive effect on the Australian economy and the thousands of property markets across Australia.
As the federal government has recently signalled - adding salt to the wound will be our ageing population; lots of significantly older adults.
Around 200,000 people reached 65 years of age in 2011. Between January 2012 and December 2020 another 5.4 million will join them. That little fact may not mean much today - but with Baby Boomers exiting the workforce in large numbers, we're staring down the barrel of a lot more people and a lot less tax payers.
A bit more research (another McCrindle report) revealed that in 2012 the median age was 38. They also predict that in 2050 our median age will be 43. We're growing older and living longer.
The double-edged sword? We're also losing our kids to the 'global village' - what we read about at university back in the 60s and 70s, they now live in. Our younger generations grow up, study, possibly received government funding or HECS support to gain their qualifications and leave our shores in increasing numbers to work in others countries.
In 2012, a reported 257,258 Australians left the 'lucky country' permanently - a quarter of a million Aussies said goodbye!
When I sat my HSC 42 years ago we didn't have pocket calculators - they weren't available in Australia. "How the times they are a changing"
I know at least some of these kids found that international job on their mobile device, accepted the offer, negotiated their remuneration package and booked their flights the same way. Leaving without a second thought.
The undeniable challenge we must now address is that we have a mass exit at the top of the age scale, a significant one in the lower age bracket - and the people in the middle are going to suffer. Your retirement age has already been increased to 70 years of age.
What's next then?
This is what's next, and it's a real eye opener. In 2013, only four percent of Aussies over the age of 65 years were self-funded retirees.
What the? 96% of people over the age of 65 were either reliant on a tax-payer funded pension, still working, or deceased. And as I said earlier, with the Boomers exiting the workforce in large numbers, we're staring down the barrel of a lot less tax payers to fund those pensions.
If people in the middle age bracket (38-55 years of age) don't take control of their financial futures right now, they really won't have much to look forward to in retirement.
If you're in that middle group and you're 'stuck'; unsure of how to shape your financial future so you can see the retirement you want and deserve, then you need to invest in your financial education now.
By developing your financial education, you'll create the ability to identify opportunities to help maximise your income and asset potential, and in return create a passive income in retirement.
Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">Smart Property Adviser</a>.
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The demographic storm about to hit Australia

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GUEST OBSERVATION
A<a href="/expert-insights/investing/australias-top-25-most-expensive-suburbs-rp-data"> recent RP Data report</a> stated the number of suburbs across Australia with a median price of at least $1 million has increased by more than 33% in 12 months - and it looked as though they were suggesting this is a good thing.
Make no mistake - this revelation of 417 suburbs should sound warning bells for the 'average Australian'. Our state and federal governments rabbit on about the need for affordable housing - since when did house prices of $1 million fit that bill?
As you might expect, many of the suburbs that made the list were in the major capitals - Sydney, Melbourne and Perth. The combined population of these three cities is approx 11 million, or 46% of Australia's total.
So let's do the math for a 35 year old working Sydney couple with one child. They're buying a home in a Sydney suburb for that median price of $1 million and they don't want to pay lenders mortgage insurance (LMI).
Suppose they met and fell in love eight years ago and started saving for their 'average home' pretty soon after. Our 'model couple' married, had a baby and have been super diligent too - saving $250,000 i n that time. That's an average of $31,000 a year for eight years.
Nice one! Who do you know that can do that? Not many? Mmmm - thought so.
Let's stop here for a minute: what buying a home for $1 million plus is doing is sucking the life out of people who are in the prime of their life, just so they can buy an average home in one of those 417 suburbs.
Out of that $250,000 deposit, they need to allow:
<ul>
<li>A little over $40,800 for stamp duty + associated fees in Sydney</li>
<li>Around $3200 for their legals and conveyancing</li>
<li>And $500 or so for their bank fees</li>
</ul>
By the time they add removal costs and a few other incidentals, they've just burned $50,000. Leaving this lovely couple $200,000 to put towards the purchase: their deposit. This means that they need an $800,000 mortgage. No problem, book that appointment with your friendly bank manager or mortgage adviser.
Oh dear ... do they qualify for an $800,000 loan? A quick calculation suggests that with the current 'super low interest rates' on offer, our couple with one child, two cars and a car loan only need to earn a combined $130,000 a year to be approved for this loan.
For this exercise I'll assume a split of: $85,000 for the breadwinner and $45,000 for the person who most carries household and child responsibilities. These two incomes deliver $64,000 and $38,250 after tax. A quick monthly calculation tells the real story: they have $5,324 &amp; $3,189 net monthly income after tax.
I t's time to celebrate - your loan is approved!
But now it's crunch time people! At just 4.69% (the super low rate currently on offer) the $800,000 loan to purchase that average home will cost our average family $4,145 per month.
That's monthly until they reach 65 years of age. $4,145 a month for the rest of their working lives! Almost 49% of their combined net income goes towards making their minimum loan repayments. And if our friends can't pay it off faster, they will have paid more than $1,000,000 in bank interest during t hat time.
What will happen though when their interest rate increases to just 6.6%? That monthly repayment jumps by a grand to $5,157 - ouch. I think you can work the rest of this math exercise out?
So our average couple bought an average home in one of 417 average suburbs with an above average deposit and above average sized mortgage...
And pretty much gave up their opportunity to become an average family of two adults and two kids.
Listen up people. Unless he's Walter White they can't ever afford to have baby number two.
Article continues on the next page. Please click below.
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The mysterious world of finance can be honed down to just three questions:
<ol>
<li>Can you pay back the loan?</li>
<li>Will you pay back the loan?</li>
<li>If it goes pear shaped, what can we sell?</li>
</ol>
If you fail to meet any one of the three criteria questions you will not be approved for finance.
Here's what hurts the feelings of so many people: the primary reason a couple wants to purchase one of these million dollar homes is to keep up appearances - I see it all the time.
Shelling out almost half your net income each month for a roof over your head is not the smartest move for most couples. Lose your job, become ill or have an accident that stops you from working and you're in trouble. This kind of financial stress kills even the strongest relationships.
People who need to keep up appearances aren't thinking about their financial future at all. They're all about 'I want it and I want it now'. Dangerous ground indeed - especially when interest rates increase in 2015 and beyond.
Many a credit rating (CRAA File) has been severely damaged over the years by this scenario and the resultant relationship breakdown.
It's articles like that RP Data Report that feed ego driven decisions and encourage people to believe that it's a 'fantastic' idea to purchase these types of properties.
Because we all know the mantra: "Property values always double every seven to 10 years."
Yeah right! Pigs might fly too.
It kills me to know that so many people fall into the trap of buying the wrong type of property, when the investors I'm working with are buying their first, second and third investments just weeks after getting started.
It's time for a reality check.
Here's a sample of the ‘no go’ suburbs from the RP Data list:
 <img src="/images/2014/08/21/rp-data-aug-21-two.png">
Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">Smart Property Adviser</a>.
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Are million dollar suburbs destroying the 'average' Australian family?

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We've all read those adverts in the industry magazines and publications. You know ... the ones touting super high rental yields on average houses or townhouses in a far flung mining town?  
So it was a kick in the teeth for those developers and marketers this week when CBA - Australia's biggest housing lender - announced that when assessing loan applications for investment properties located in mining towns, from next Monday (irrespective of what actual rent the property receives or is estimated to receive), they will now cap rental yields at 8% for their servicing calculations.  
I wasn't surprised in the least when I saw CBA's recent credit policy change. Here's why: in a blog article I published a few weeks ago titled <a href="https://spionline.com.au/blog/latest-blogs/12089-investor-fyi-how-the-banks-works" target="_blank">"Investors FYI: How banks work"</a>, I openly exposed how banks work, detailed how they assess their lending and interest rate on offer using a simple explanation: 'rate for risk' and emphasised how the banks calculate all of their lending based on risk.  
This latest change to credit policy is heavily based on the need to minimise the risk of CBA customers defaulting on their loans: "With high rental yields in some areas of the country, particularly in mining towns, and a view that these yields are not sustainable, the Bank will be capping rental yields at 8%. By capping the rental yield we are proactively moving to minimise the risk to customers defaulting on their loan while supporting brokers in maintaining their customer portfolio."
What they didn't mention is that many investors have bought investment properties purely on the premise that the advertised rental would last - possibly for decades. CBA has changed both their credit and postcode policies over the past few months to further mitigate any impending risk.  
Investors would be wise to take note.  
In another published article I commented on the risks associated with investing in mining or 'one industry' towns and expressed my professional and researched opinion. I concluded that it was naive for investors to invest in mining town areas. The article was titled <a href="https://spionline.com.au/home/11088-naive-to-fall-for-mining-town-investments" target="_blank">"Naive for investors to buy in mining towns"</a>.  
The risk of investors defaulting on their loans is increasing amongst those investors with investment properties in mining towns and especially in light of increasing interest rates.  
Banks know this &amp; they definitely know 'their game' better than anyone else. You want proof? Check their annual profits. 
Their job is to minimise their risk and maximise their profits. CommBank is taking action now; it won't be long before other lenders follow.  
CBA statement:
"On Monday 25 November 2013, all Home Loan/Investment Home Loans and Lines of Credit reliant on rental income from a residential security for servicing must not exceed the 8% rental yield.
"All applications (including Home Seeker) decisioned after Sunday 24 November 2013, will be subject to the new rental yield cap...
"Customers who earn greater than 8% p.a. rental yield must be advised that the Bank can only use the maximum of 8% p.a. rental yield for servicing."
 
<hr>
Kevin Lee is the property investment expert and buyer's agent at <a rel="nofollow" target="_blank" href="https://www.smartpropertyadviser.com.au/">Smart Property Adviser</a>.
Kevin specialises in helping investors identify and acquire positive cashflow properties that generate high rental returns, enabling his clients to grow their portfolios.
Kevin's free report "How To Turn Your Negatively Geared Property Into A Positive One In 3 Steps - Without Selling" is available at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">www.smartpropertyadviser.com.au</a>. 
 
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What does the Commonwealth Bank's changing stance on mining towns mean for investors?

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Investors who aren't good at managing money could find a line of credit (LOC) to be their biggest mistake: helping them to get in way over their heads financially. LOC's are an exercise in compounding interest - and work really, really well; for the bank!


Although the interest rate on an LOC appears competitive compared to a credit card - used incorrectly it often becomes a massive financial problem. 

This is the biggest downside investors should be wary of - LOC's allow you to capitalise the interest until you reach the limit (or 90% of the credit limit). Many people don't think this through; capitalising the interest fools people into a false sense of security, but in fact it means that the interest incurred is simply being added to the amount already drawn down.
For example, if you borrow $250,000 via a LOC and interest for the month is $1500, instead of being required to pay the $1500 into the loan, the balance simply becomes $251,500. Repeated monthly that $1500 interest component grows: maybe only by $10 to $1510 the next month, but by the end of the first year that monthly interest component will be well over $1600.

If you are using your line of credit for personal purchases, you can see how easily this can become dangerous. Ignoring the debt by allowing the interest to capitalise will directly affect your ability to expand your portfolio. 

Tip: you should budget to repay your LOC in full over 10 years. 

Question yourself if that timeframe seems impossible; if you can't pay it off don't be deluded into believing its helping you get where you want to go.

Smaller amounts like $5,000 or less should be paid back within two years; three years is realistic for amounts such as $10,000. 

Never forget that growing your portfolio is your priority and every decision you make must contribute to its growth. Therefore using a line of credit to purchase depreciating assets such as cars is nothing more than a step backward in your journey to financial freedom.

Of course investors often access funds from a LOC to fund renovations or repairs needed to improve their investment property, potentially improving the rental return and value. That's OK - as long as a plan is in place to pay that debt off over a given timeframe.

If you're a home owner wanting to invest, beware of using a LOC attached to your home - you should seek advice from your financial planner and/or accountant. Get it wrong and you'll be sorry!

Don't mix business with pleasure, park your pay as you go income in your owner-occupied property offset account to save interest on your owner-occupied debt. Don't park your income in the LOC.
However if like so many people - you've already mixed business with pleasure - see your adviser as soon as possible  to help get you back on track.

What's all the fuss? Mixing business expenses (investment) with pleasure (personal) means you will lose tax deductibility status on some of the loan. This will ultimately also increase your accountancy costs substantially.

Lines of credit can be useful for consolidating other debts into your mortgage, however they are not for everyone.

Before you consider a line of credit ensure that you have a strict budget plan in place to stay within your financial limits. 

Don't become dependent on your line of credit, it will ultimately do you more harm than good - often slowly and without you noticing it.

<hr>
Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">Smart Property Adviser</a>.
Kevin specialises in helping investors identify and acquire positive cashflow properties that generate high rental returns, enabling his clients to grow their portfolios.
Kevin's free report "How To Turn Your Negatively Geared Property Into A Positive One In 3 Steps - Without Selling" is available at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">www.smartpropertyadviser.com.au</a>.
 
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Why investors should be wary of lines of credit: Kevin Lee

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Most people confuse cash-flow and gearing believing they're the same thing; they're not.
Cash-flow is the pre-tax income your investment property generates week after week, whilst gearing relates to how your investment property is financially structured after tax.
Few investors are aware that negative gearing is a financial trap. In a nutshell, negative gearing is where you lose money month in month out - because you believe the value of the property will increase sufficiently over the short term, to offset those monthly losses. Some people mistakenly believe that it's smart to invest purely for the tax benefit.
Smart investors however, know that negative cash-flow on a weekly to monthly basis does not facilitate a multi property portfolio.
Negative cash flow is when the expenses for a property exceed the income the property generates.
Some investors don't realise that negative cash-flow can also occur in positively geared properties as well. Longer-than-expected vacancy periods, major repairs, maintenance and other ongoing expenses can sometimes result in negative cash-flow, for a short period of time.
If you're property is positively geared and generating negative cash flow then you've probably run into some larger than normal expenses.
Tip - it's a good idea to keep a cash buffer of three months loan repayments in an offset account - it becomes useful when you have repairs or go through short term financial hardship.
Also don't ignore the fact that your property could be producing a negative cash flow because the market in which your property lives may be experiencing low rental demand. This could signal that it's time to renovate.
Nonetheless, in its purest sense negative cash-flow is highly disabling and will prevent you from going forward and growing your portfolio. A smart property adviser can help you reverse your negative cash-flow situation; often it's simply a case of restructuring your incorrect or impractical finance structure.
However - as is the case with negatively geared property - your income can only service a limited number of negative cash-flow properties .... before you start to feel financial strain.
 
<hr>
 Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank">Smart Property Adviser</a>.
Kevin specialises in helping investors identify and acquire positive cashflow properties that generate high rental returns, enabling his clients to grow their portfolios. 
Kevin's free report "How To Turn Your Negatively Geared Property Into A Positive One In 3 Steps - Without Selling" is available at <a href="https://www.smartpropertyadviser.com.au/" target="_blank">www.smartpropertyadviser.com.au</a>.
 
 
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Negative gearing is not the way forward: Kevin Lee

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:ca872054-bfe3-4cc5-a2c8-b373d4dfeafb-2" dir="auto">
A completed Castle Hill apartment development is returning to market with an uncommon level of financial backing, positioning it as one of the more secure options for buyers in Sydney’s north-west.

Skyview in Castle Hill, originally developed by Top Place and now overseen by capital partner <a href="https://www.apartments.com.au/developers/equitifund-group">Equitifund</a>, is being relaunched following a full remediation process. Central to its repositioning is a substantial financial reserve designed to provide ongoing protection and reduce uncertainty for incoming purchasers.

At the core of this offering is an $11 million bond secured during the project’s remediation phase, negotiated by former NSW Building Commissioner David Chandler. With less than $4 million required to complete the works, approximately $7.2 million remains in reserve, with around 15 years left on the term.

[smartcode_project:default project_id=147685 project_image_fid=359134]

Rather than a typical insurance-backed structure, the remaining funds are held as cash, creating a readily accessible financial buffer should any future building issues arise. The structure is intended to provide buyers with an added layer of certainty, differentiating the development from more conventional apartment offerings.

Equitifund Executive Chairman Greg Huxley said the structure provides a level of security not typically seen in apartment developments.

“The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers,” Huxley said.

“Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind.”

[smartcode_project:default project_id=147685 project_image_fid=359135]

The remediation process has now been completed in full, with no active rectification orders or outstanding directives linked to the project on NSW Government registers. This outcome reflects the broader tightening of building oversight across the state, while also highlighting the project’s transition into a completed, compliant asset.

In a market where many buyers remain cautious about apartment quality, initiatives like this are designed to restore confidence, giving purchasers greater certainty and a stronger sense of security in their investment.

Equitifund has since acquired the remaining apartments and is managing their reintroduction to the market. With the works finalised and a significant financial reserve in place, the project now presents with a markedly different risk profile compared to its initial release.

[smartcode_project:default project_id=147685 project_image_fid=359137]

Beyond the added security, the development is positioned in one of Castle Hill’s more established pockets. The Gay Street address places it within close proximity to Castle Towers, one of the country’s largest retail centres, as well as Castle Hill Metro Station, which now connects directly to the broader Sydney Metro network.

Equitifund National Sales Director Ben Hamblett said buyer demand in the area continues to be driven by access to transport and amenity.

“Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre,” Hamblett said.

“There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living.”

[smartcode_project:default project_id=147685 project_image_fid=359145]

The apartments also enter the market at a relatively accessible price point for the area, with two-bedroom configurations starting from $995,000 and rental demand for similar stock reaching around $900 per week. This combination of pricing, connectivity, and completed status is expected to appeal to both owner-occupiers and investors seeking lower-risk entry into the Hills District apartment market.

For eligible buyers, a limited 3.50 per cent p.a. two-year fixed interest rate is currently available through Equitifund’s lending partners, providing an additional layer of affordability.

EquitiCredit Pty Ltd ACN 676 363 769 holds ACL 559289 and provides credit assistance. Finance is arranged through EquitiCredit and funded by its lending partners. Interest rates are subject to change and eligibility criteria apply. Terms, conditions, fees and charges may apply. This is not financial advice and should not be relied upon as such. Prospective buyers should seek independent financial advice.

[smartcode_project_cta:default project_id=147685]
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Joel Robinson

Castle Hill apartments offering unmatched buyer protection through dedicated fund

A State-Assessed Rezoning Proposal for the Kurnell Peninsula is now on public exhibition, setting out a plan to deliver up to 4,300 homes alongside new retail, tourism and public open space on a 210-hectare coastal site.

The proposal, backed by the Minns Labor Government, would transform a former sand mining area along Captain Cook Drive into a mixed-use precinct delivered over approximately 20 years.

In addition to housing, the plan includes more than 7,000 sqm of retail and commercial space, new community facilities and approximately 116 hectares of open space, equating to more than half the site.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="ce1c6567-1df0-4de0-9fe5-a76be0367834" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.11.51%E2%80%AFAM_0.png?VersionId=dbbTmYaJvROA5fkQbgaxis8cmFwtpB5_" />

<hr data-end="849" data-start="846" />
<h2 data-end="902" data-section-id="ony3l3" data-start="851">Rezoning framework enables mixed-use development</h2>

The rezoning application seeks to amend planning controls under the State Environmental Planning Policy (Precincts—Central River City) and the Sutherland Shire Local Environmental Plan 2015.

Its primary objective is to enable a broader range of land uses across the site, including residential, employment, tourism and community uses, while also formalising environmental protections and land management outcomes .

The proposal has progressed through the state-led rezoning pathway after being identified as a project of regional significance, supported by several years of technical studies and agency consultation .

Development would occur in stages, aligned with the progressive closure and remediation of the existing sand mine.

<hr data-end="1718" data-start="1715" />
<h2 data-end="1768" data-section-id="krwii9" data-start="1720">Master plan structured around three precincts</h2>

The accompanying urban design report outlines an indicative master plan that divides the site into three primary precincts, anchored by a town centre in the western portion of the site.

The town centre is planned as the first stage of development, located on land that has already been remediated. It is intended to accommodate higher-density housing, retail, and community uses.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="4bfd5873-4847-4105-b220-0a30c96f5573" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.20.09%E2%80%AFAM.png?VersionId=7aVaSsZLAc6mElSH4g6Ct5bGsNxZcnPL" />

Additional precincts extend toward Bate Bay and Boat Harbour, with built form responding to environmental conditions and proximity to the coastline.

The design framework identifies distinct local character areas, with the master plan structured to reflect “unique natural qualities” across the site.

<hr data-end="2495" data-start="2492" />
<h2 data-end="2544" data-section-id="1vitwqn" data-start="2497">Open space forms core of the design approach</h2>

A key component of the proposal is the allocation of approximately 116 hectares to open space and ecological land.

This includes:

<ul data-end="2846" data-start="2678">
	<li data-end="2702" data-section-id="d96caj" data-start="2678">Three district parks</li>
	<li data-end="2723" data-section-id="17y6uz6" data-start="2703">Nine local parks</li>
	<li data-end="2741" data-section-id="14hui00" data-start="2724">Sports fields</li>
	<li data-end="2778" data-section-id="ts7psx" data-start="2742">Coastal and ecological corridors</li>
	<li data-end="2846" data-section-id="agduax" data-start="2779">Two kilometres of publicly accessible beachfront along Bate Bay</li>
</ul>

The urban design report positions this open space network as central to the structure of the development, rather than ancillary to it.

It is intended to support ecological regeneration, provide recreational amenity and create a connected network across the peninsula.

The plan includes north–south ecological corridors, expanded wetland systems and pedestrian and cycling links designed to connect residential areas to the coastline and open space areas .

<hr data-end="3347" data-start="3344" />
<h2 data-end="3381" data-section-id="ql66rt" data-start="3349">Housing mix and affordability</h2>

The proposal includes approximately 4,300 dwellings across a range of housing types.

This includes high-density apartments, medium-density housing, townhouses and seniors housing.

Affordable housing provision is identified at approximately 240 dwellings, alongside a smaller component of social housing.

The master plan emphasises housing diversity, with the intent of accommodating a range of household types and age groups within the development.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="d4baba4d-b5b0-4a86-bcad-5d319b036184" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.11.59%E2%80%AFAM.png?VersionId=udYFz0q8tjEPR3pmKLHRSFRJN4dKakPO" />

<hr data-end="3877" data-start="3874" />
<h2 data-end="3919" data-section-id="rgckdv" data-start="3879">Built form controls and height limits</h2>

Proposed building heights across the site range from three to 12 storeys.

These controls are set out within the rezoning application and are intended to manage visual impact, maintain view corridors and ensure compatibility with the coastal landscape.

Floor space ratios and height limits are applied across different parts of the site to reflect varying environmental conditions and proximity to open space and the coastline .

Higher density is generally concentrated within the town centre, with lower-scale development toward the coastal edge and environmentally sensitive areas.

<hr data-end="4548" data-start="4545" />
<h2 data-end="4588" data-section-id="1minlda" data-start="4550">Retail, tourism and employment uses</h2>

In addition to residential development, the proposal includes retail, commercial and tourism uses.

This includes:

<ul data-end="4896" data-start="4706">
	<li data-end="4775" data-section-id="1jrun76" data-start="4706">Approximately 7,000–9,800sqm of retail and commercial floor space</li>
	<li data-end="4803" data-section-id="10kyifw" data-start="4776">A full-line supermarket</li>
	<li data-end="4830" data-section-id="fz1hdg" data-start="4804">Food and beverage uses</li>
	<li data-end="4896" data-section-id="1aqg2fj" data-start="4831">Tourism accommodation, including hotel and short-stay options</li>
</ul>

The proposal also identifies employment outcomes, with the development expected to support jobs both during construction and in ongoing operations.

These uses are concentrated within the town centre and key activity areas across the site.

<hr data-end="5142" data-start="5139" />
<h2 data-end="5172" data-section-id="162x2kt" data-start="5144">Infrastructure and access</h2>

The proposal includes upgrades to Captain Cook Drive, which provides the primary access to the peninsula.

These upgrades are intended to improve traffic flow and support emergency access.

The transport strategy also incorporates:

<ul data-end="5529" data-start="5407">
	<li data-end="5433" data-section-id="fanquy" data-start="5407">Internal road networks</li>
	<li data-end="5469" data-section-id="o6y80y" data-start="5434">Walking and cycling connections</li>
	<li data-end="5529" data-section-id="jgraft" data-start="5470">Proposed public transport routes and bus stop locations</li>
</ul>

The rezoning report includes detailed analysis of transport, flooding, and infrastructure requirements to support the staged development of the site .

<hr data-end="5723" data-start="5720" />
<h2 data-end="5769" data-section-id="14urh3" data-start="5725">Environmental and cultural considerations</h2>

The site is identified as having environmental and cultural significance, including areas of ecological value and Aboriginal archaeological sensitivity.

The proposal includes measures to protect and enhance these areas, including:

<ul data-end="6230" data-start="6004">
	<li data-end="6056" data-section-id="1pzyouo" data-start="6004">Retention and regeneration of coastal vegetation</li>
	<li data-end="6100" data-section-id="bjn2vz" data-start="6057">Strengthening of biodiversity corridors</li>
	<li data-end="6148" data-section-id="1bpeyoj" data-start="6101">Protection of riparian systems and wetlands</li>
	<li data-end="6230" data-section-id="lg0cka" data-start="6149">Integration of cultural interpretation and recognition of Indigenous heritage</li>
</ul>

The urban design report also outlines opportunities for incorporating Indigenous cultural elements into public spaces and landscape design.

<hr data-end="6893" data-start="6890" />
<h2 data-end="6908" data-section-id="w7rk5f" data-start="6895">Next steps</h2>

The proposal is currently on public exhibition, with submissions open to the community. Feedback received during this period will inform the Department of Planning’s assessment of the rezoning.

If approved, the rezoning would establish the planning framework for future development applications across the site.

<hr data-end="6893" data-start="6890" />
<h2 data-end="6908" data-section-id="w7rk5f" data-start="6895">What the NSW Government says</h2>

Minister for Planning and Public Spaces Paul Scully said the planned closure of the sand mine and remediation of the Kurnell Peninsula presents an exciting opportunity to transform the area.

“This proposal envisions a vibrant new beachfront community with thousands of new homes, jobs and great open space in the Sutherland Shire. I encourage the community to have their say during the public exhibition period. Feedback from the community will play an important role in the assessment of the proposal.”

Sydney's newest beachfront city: NSW Gov to unlock 4,300 new homes on Kurnell peninsula

A long-awaited transformation of a former industrial site in Holroyd has been given the green light, with the NSW Government approving the $1.2 billion Crescent Parklands masterplan that will deliver more than 1,200 new homes just south of Parramatta.

The State Significant Development approval clears the way for a large-scale mixed-use precinct at <a href="https://www.apartments.com.au/new-apartments/1-crescent-street-holroyd-nsw-2142">1 Crescent Street</a>, replacing an underutilised site with a coordinated residential community anchored by new open space, retail, and commercial uses.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> for WA-based developer Tiberius, the approved scheme comprises seven buildings arranged across two precincts. In total, the development will deliver 1,227 apartments, including 201 allocated as affordable housing, alongside approximately 2,500 sqm of retail and 5,000 sqm of commercial space within a mixed-use podium.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="1cc82dd2-8184-4b86-8665-90653147820d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20buildings.png?VersionId=2ZmVDc_Rfc4AzQ6ShzZJlvdZnACLerVM" />

The project is structured as a masterplanned precinct rather than a standalone tower. Buildings 1 to 4 will rise from a shared podium with shop-top housing, while Buildings 5 to 7 are positioned closer to the northern park interface as residential flat buildings. The built form has been carefully modulated to balance density with amenity, with the design resolving building separation, solar access, and wind impacts at a precinct scale.

A significant focus of the design is the activation of Crescent Street and the integration of public domain. The submission notes that “individual townhouses [were] removed for community based functions to Crescent Street to increase activation and surveillance,” reinforcing a more urban and publicly engaged street edge. Retail, commercial tenancies, and resident amenity spaces are concentrated along this frontage and within the podium to support day-to-day activity.

The landscape strategy underpins the project’s identity, with a network of pedestrian connections, landscaped corridors, and open spaces linking the site internally and to its surroundings. The design prioritises permeability, delivering “increased uninterrupted flow between spaces for pedestrian access” and improved connections through to the adjoining parklands.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="19282454-ab2f-4e2c-866f-4b35cf4283d4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20masterplan.png?VersionId=JQdWGYI5B5R1lzmK4omYOp_8KLPkT4Bv" />

Buildings within the western precinct are oriented toward the park, shaping a residential offering defined by proximity to open space. The design describes this approach as creating apartments “immersed in nature with apartments facing the park,” positioning the landscape as a central organising element of the masterplan.

The broader architectural response addresses both infrastructure and context, with taller elements capturing long-range views toward Parramatta while setbacks and separation distances mitigate impacts on surrounding residential areas. Sustainability initiatives, including solar optimisation, cross-ventilation, and integrated landscape systems, are embedded across the scheme.

Located approximately one kilometre south of Parramatta CBD, the 3.6-hectare site is bounded by Crescent Street, Woodville Road, and Holroyd Sportsground. It benefits from strong access to public transport, including nearby bus routes and train stations, and sits within a rapidly evolving corridor earmarked for increased residential density. The design also strengthens connections between surrounding green spaces, including Holroyd Sportsground and Parramatta Parklands.

The approval follows several years of planning, including a rezoning process that enabled significant uplift in height and density across the site. With determination now secured, Crescent Parklands is positioned to play a major role in delivering new housing supply within Greater Parramatta’s growth area.

Tiberius’ Crescent Parklands to deliver over 1,200 homes in major Holroyd transformation

A new State Significant Development application has been lodged over land at <a href="https://www.apartments.com.au/new-apartments/33-43-marion-street-parramatta-nsw-2150">33–43 Marion Street</a>, Parramatta, proposing a high-rise mixed-use tower that leverages planning incentives to deliver a substantial pipeline of new housing, including a dedicated affordable component.

The scheme, currently on exhibition, combines a shop-top housing development with a concurrent rezoning, positioning the site for a significant uplift in density within Parramatta’s evolving southern CBD fringe.

The proposal, designed by <a href="https://www.apartments.com.au/architects/fuse-architecture-0">Fuse Architects</a> for CN Marion, would replace the existing buildings with a 37-storey mixed-use tower, delivering 296 apartments above a retail podium with six basement levels on the 2,376 sqm site.

The residential mix comprises 58 one-bedroom, 207 two-bedroom, and 31 three-bedroom apartments, with communal facilities located on the second level and the rooftop. Ground-level activation is driven by retail and food and beverage tenancies, alongside a publicly accessible through-site link designed to improve pedestrian permeability.

The project includes 194 car spaces, five motorcycle spaces, and 348 bicycle spaces, reflecting a transit-oriented approach in a location directly adjacent to the rail corridor and within walking distance of Harris Park Station.

<img alt="First Look: Plans lodged for 37-storey mixed-use tower with affordable housing at 33–43 Marion Street, Parramatta" data-entity-type="file" data-entity-uuid="3db873ea-62f0-437b-8a6a-eeda154d2dee" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Marion%20building.png?VersionId=YwzBv8OVHwyRnMLGX4slU7QyhTyMZeOX" />

The design adopts a podium-and-tower composition, with a three-storey street wall addressing Marion Street and a reduced two-storey interface responding to adjoining heritage cottages.

A key component of the proposal is the integration of affordable housing under the NSW Government’s in-fill affordable housing pathway, with units to be retained for a minimum of 15 years. This is paired with a broader public domain strategy that emphasises permeability, deep soil planting, and a landscaped through-site link.

“The strategy prioritises a permeable, well-activated public realm and supports a compact tower form to minimise the building’s footprint while enhancing the quality of the ground-level experience,” the design report states.

The proposal includes a central landscaped courtyard, rooftop communal areas, and planting strategies aligned with local environmental conditions and cultural narratives.

<img alt="First Look: Plans lodged for 37-storey mixed-use tower with affordable housing at 33–43 Marion Street, Parramatta" data-entity-type="file" data-entity-uuid="f0e6c165-9967-4d20-9216-e5b8357c85ba" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Marion%20site.png?VersionId=SRod222LwgDmGZJmJY0wTbK39UrWZLSD" />

The site occupies a prominent corner of Marion and Station streets, roughly 100 metres from Harris Park Station, within a precinct earmarked for significant intensification. While the immediate context is characterised by low- to mid-rise buildings and heritage dwellings, planning controls and recent proposals point to a transition toward high-density development.

<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:c78224e4-1dd1-48ac-afda-97fe23bac47e-0" dir="auto">
Parramatta has been starved of new apartment supply in recent years. Builder-developers Deicorp and Coronation are the only two currently progressing projects in the suburb. Coronation is nearing completion of <a href="https://www.apartments.com.au/new-apartments/8-phillip-street-2-10-phillip-street-parramatta">8 Phillip Street</a>, which will be the tallest building in Western Sydney once finished, while Deicorp is delivering <a href="https://www.apartments.com.au/new-apartments/cosmopolitan-by-deicorp-parramatta-34-hassall-street-parramatta-nsw-2150">Cosmopolitan</a>, a development comprising over 600 apartments.
</section>

First Look: Plans lodged for 37-storey mixed-use tower in Parramatta

A substantial uplift in height and density is being tested in Lane Cove, with a 225-apartment scheme at 300 Burns Bay Road now on public exhibition as a State Significant Development alongside a concurrent rezoning.

The proposal by <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> would see the demolition of an existing commercial building and associated structures, replaced by a residential development ranging from seven to 15 storeys.&nbsp;

The scheme delivers 225 apartments, including 34 designated as affordable housing, positioning it within the NSW Government’s accelerated Housing Delivery Authority pathway.

The development is arranged as three interconnected residential flat buildings, a response to the site’s long, narrow configuration and sloping topography.&nbsp;

<img alt="First look: 225-apartment Lane Cove tower proposal enters exhibition under State Significant pathway" data-entity-type="file" data-entity-uuid="c325d40c-ead5-45f4-9d77-5a446b23acc0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Lane%20Cove%20pers.png?VersionId=hsCJxT5hj.5kzA6AMInyan1x8mcHeRez" />

<a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a>, the project’s designer, describe a built form that is “divided into three sections, each connected by intermediate infill slots which are recessed to establish greater setbacks and further articulate the development.”

Across the scheme, apartments are supported by communal amenity at ground and rooftop levels, including landscaped open space and a rooftop pool. Basement and lower ground levels accommodate parking, storage, and building services, while a new public park is proposed along the eastern edge of the site, replacing part of the existing built form.

The architectural response has been shaped by the site’s pronounced fall towards the Lane Cove River, with building heights stepping down from west to east to reduce visual bulk and respond to adjoining bushland.&nbsp;

The design report notes that “the development has been carefully designed to integrate with the existing topography with the placement of massing and floor levels adjusted respecting the site’s inherent characteristics.”

<img alt="First look: 225-apartment Lane Cove tower proposal enters exhibition under State Significant pathway" data-entity-type="file" data-entity-uuid="31cc13a5-bc8b-4dc3-b9b1-07c6ec33a82b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Lane%20cove%20site.png?VersionId=NiyH3LimQwiHsE6Q7I5g4Grpr5fRdZaX" />

The project is being advanced through a concurrent rezoning process, seeking to increase the permissible height and floor space ratio beyond current Lane Cove LEP controls of 21 metres. Under the proposal, height would reach up to 54.5 metres, reflecting a shift toward higher-density outcomes in well-located urban areas.

Located on a 7,595 sqm site, the development sits within an established high-density residential pocket characterised by mid-rise apartment buildings set within a bushland setting. The site is within close proximity to Burns Bay Reserve, the Lane Cove River, and an extensive network of open space, reinforcing its strategic positioning for increased housing supply.

Level 33 is doing through the Housing Delivery Authority to try and get its Homebush project of <a href="https://www.apartments.com.au/news/nsw/level-33-adds-to-2-000-unit-pipeline-with-new-two-tower-homebush-plans">more than 300 apartments approved</a>.

The developer has over 2,000 apartments in the pipeline, predominantly in Wollongong.

Kevin Lee

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