<html><body>
ASIC is currently undertaking “limited surveillance” of financial advisers and accountants over concerns that property spruikers are encouraging investors to set up self-managed super funds purely as vehicles for "dodgy" property investments.
The corporate watchdog also has a taskforce focused on the aggressive marketing of speculative property investments, according to report in The Australian.
"We don't want SMSFs to be the preferred vehicle for dodgy property spruikers," says ASIC commissioner Peter Kell.
Kell says being encouraged to set up a SMSF “solely to invest in direct property” should be a “warning sign” for consumers.
He says a big risk for SMSF investors is speculating on property in areas where they are less familiar.
This would suggest ASIC concerns about investing in areas such as remote mining towns, where new housing developments have been heavily promoted by marketeers.
According to Kell, in some cases investors are being flown to places like the Gold Coast, shown a property and then steered through all the steps necessary to set up the SMSF, including creating the holding trust required to act as custodian of the property and arranging the loan and purchase of the property.
Current tax rules do allow investors to put investment property into their SMSF and also borrow against the fund to acquire property - provided it is done at arm’s length and with the appropriate structures.
But Kell says setting up a fund just to acquire and hold property is clearly in breach of the spirit of DIY funds by not achieving diversity and may also breach trustee obligations to maintain liquidity in the fund.
Investing in property through a SMSF holds significant tax advantages with the maximum rate of tax paid on rental income being 15% and falling to 0% if the SMSF is in the pension phase.
This compares with personally held property where rental income is taxed at a marginal tax rate, which in some cases can be as high as 46.5%.
“ASIC has concerns that people are being encouraged to set up SMSFs in situations where they don’t have the resources, experience and understanding to ensure they actually generate the expected benefits,” says Kell.
Kell says the resourcing issue is not just about money but having the time to properly manage your SMSF.
But he says ASIC is emphatically not anti-SMSF, but is worried that as the sector grows in popularity it will be a target for fraudsters.
ASIC hopes to release research into this aspect of SMSF investing in 2013.
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lschlesinger-FZcF9M3vE6

 ASIC raises alarm bells about spruikers exploiting SMSF rules to push dodgy property investments 

<html><body>
The common perception of first-home buyers as 20-somethings may need to be reconsidered, with a new survey showing a declining trend in first-home buyers aged 29 and under and a rising proportion of buyers aged 40 and over.
A Mortgage Choice online survey of 1,000 Australians who plan to buy their first home in the next two years found that the greatest proportion of first-home buyers (41%) are aged between 30 and 39, compared with 39% aged 18 to 29.
The proportion of prospective first-home buyers aged 40 and over was 20%, or one in five.
These results build on earlier online polls that show a trend of first-home buyers choosing to purchase when they are older and a marked decline in younger buyers.
The Mortgage Choice 2011 recent first-home owner survey found that the majority of first-home buyers (55%) were aged between 18 and 29, this itself a fall from a 2010 survey when 63% of respondents were in this age bracket.
The 2011 survey also found that 34% of recent first-home buyers were aged between 30 and 39, and only 11% were aged 40 and over.
Mortgage Choice spokesperson Belinda Williamson says the results of the survey show that “more first-home buyers are saving for longer and purchasing later in life, perhaps when they are in a better financial position”.
Other findings of the 2012 survey tie in with the shift towards older first-home buyers, with the average period to save for a deposit increasing from 1.8 years in the 2011 survey to two years in 2012.
It also found that job security concerns have increased notably since 2011, with 18% of 2012 respondents claiming it to be their biggest concern, compared with 11% last year.
Conversely, fewer buyers are concerned about rising house prices (22% this year compared with 31% in 2011) and even fewer are concerned about the impact of interest rates on their ability to purchase their first home (8% this year compared with 14% in 2011).
“While many of the economic indicators such as rate cuts, lower house prices and improved affordability might suggest now is a good time to buy, people are still nervous about their ability to sustain employment,” says Williamson.
</body></html>

First-home buyers increasingly ageing into their 30s and one in five even aged 40 and over: Mortgage Choice 

<html><body>
While it’s still early days, the latest housing finance figures published by both the ABS and mortgage broker AFG suggest NSW and Queensland are discouraging many first-home buyers after doubling state handouts last year, but only if they buy or build a new home, while offering nothing for those that buy an existing property.
The most up-to-date mortgage figures are provided by aggregator AFG, which claims to write one in every 10 home loans in Australia through its network of affiliated mortgage brokers.
AFG reports a healthy 15% rise in the volume of mortgages arranged by brokers over 2012 from $28 billion to $32 billion, but says the average long term share of home loans arranged for first-home buyers, usually between 12% and 15%, collapsed to just 4.2% in NSW and 4.5% in Queensland during the last two months of 2012, after the $7,000 first-home buyers grants were withdrawn in both states in favour of the $15,000 boost for new homes only.
In comparison, investors dominated the mortgage market in these two states, comprising 46.3% and 35.9% of all home loans respectively.
Official ABS data is only up until November, so it is difficult to say a trend is emerging, but the figures certainly suggest first-home buyers have not been swayed to consider a new house or apartment over an existing property.
The ABS records that the number of first-home buyer loans arranged in NSW fell from 2,088 in October to 1,383 November, while in Queensland first-home buyer loan numbers fell from 2,116 in October to 1,417 in November - in both states a monthly drop of 33%.
Furthermore, just 793 first-home buyers took advantage of the revised NSW first-home owners' grant in December last year, <a target="_blank" href="https://www.propertyobserver.com.au/news/nsw-first-home-buyer-numbers-fell-to-20-year-lows-in-late-2012/2013011458763?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">the lowest take-up in 20 years</a> with the NSW state opposition claiming that Barry O'Farrell's decision to dump first-home buyer grants and stamp duty exemptions have been "nothing short of devastating for young people trying to buy their first home".
Indeed, first-home buyer changes are particularly tough on those in NSW that wish to buy an existing property.
Since October 1, the NSW state grant has been lifted from $7,000 to $15,000 for new homes valued up to $650,000, while a maximum stamp duty exemption of $20,240 is also available for new homes worth up to $550,000.<a style="font-size: 0.8em;" href="https://www.propertyobserver.com.au/administrator/index.php?option=com_flexicontent&amp;view=item&amp;cid=58777#">Apply</a>
First-home buyers that purchase an existing home get nothing.
In Queensland, since September 11, a $15,000 first-home owner construction grant (FHOCG) has been available for new property bought or built at a value under $750,000, but all first-home buyers also pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000.
The doubling of the NSW first-home buyer grant was announced in mid-June, but only came into effect three-and-half months later, with Property Observer reporting on the conundrum it created for both <a href="https://www.propertyobserver.com.au/residential/nsw-budgets-needlessly-complex-artificial-deadlines-have-short-term-and-long-term-consequences-for-residential-property/2012061455119">first-home buyers and investors</a> over this interim period.
Queensland government introduced its construction grant with immediate effect from September 11, but gave first-home buyers up until October 11 to finalise contracts.
Contrast this with Victoria, which still offers a $7,000 first-home buyer loan for both new and existing home purchases (and increased stamp duty concessions from 20% to 30% on January 1) and first-home buyer loan numbers were little changed over the month, falling marginally from 2,545 to 2,407.
Ray White chairman Brian White labelled the new first-home buyer polices as “no longer a first-home buyers but a builders incentive” and a "deceit", saying they distorted the market, but not in a healthy way.
The latest data suggests he could be right.
</body></html>

First-home buyer policies failing in NSW and Queensland

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The ATO is warning investors about a tax avoidance scheme where they are encouraged to borrow funds to invest in a trust that buys a rental property and are then told they can claim the borrowings as a tax deduction.
In such a scheme a self-managed superannuation fund (SMSF) derives income through a direct or indirect interest in the trust.
“In this arrangement a promoter encourages you to borrow funds to invest in a trust which has, as one of its beneficiaries, an SMSF. The trust uses the funds to buy a rental property.
“You then claim all of the borrowing costs as income tax deductions. However, some of the income from the investment is distributed to the SMSF.
“This arrangement is considered to be a scheme because you are claiming deductions for all of the interest expenses on the borrowing but the borrowing has also been used to derive income for other beneficiaries of the trust such as an SMSF which is ordinarily taxed at the concessional rate.
“However, as the income distribution from the trust to the SMSF may be considered non arm's-length income, it may in fact be taxable at a higher rate,” says the ATO.
The ATO provides a more detailed explanation of this scheme in a <a target="_blank" href="https://law.ato.gov.au/atolaw/view.htm?Docid=TPA/TA20084/NAT/ATO/00001&amp;PiT=99991231235958">2008 taxpayer alert.</a>
The warning is part of a new guide issued by the ATO called Investigating tax-effective arrangements, which aims to help borrowers “recognise some of the common types of tax avoidance schemes so you can reject them and avoid the negative consequences associated with them”.
The ATO is also warning on two <a target="_blank" href="https://www.propertyobserver.com.au/tax/ato-warns-on-home-loan-tax-avoidance-schemes/2013012458979?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">home loan tax avoidance schemes</a>.
The guide can be <a href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=1&amp;H1">viewed online</a> or <a href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=1&amp;H1">downloaded as a PDF document</a>.
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ATO warns investors about illegal SMSF rental property scheme

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Mortgage lender RAMS has waived application fees and settlement fees for first-home buyers as part of a new campaign aimed at helping them move from renting to buying.
The campaign is being promoted by a new television commercial, which aired for the first time last weekend.
RAMS has also waived the account keeping fees on its RAMS Low Rate Home Loan with Introductory Rate Option, during the introductory rate period.
According to the lender, this could save first-home buyers up to $1,590 in fees.
“We understand the frustrations of FHBs who tell us they are in a rental rut and are delaying purchasing a property due to their inability to afford repayments and fears of unemployment in an uncertain economy," says RAMS chief executive Melos Sulicich.
“We have listened to their concerns and created genuine options designed to renew first-home buyer confidence and reignite their passion and drive to take the first step to home ownership."
RAMS says it is also helping first-home buyers by requiring only a 5% deposit with a full-doc loan (plus funds to cover transaction costs), if they meet our other lending criteria.
The lender has also cut its two-year fixed rate from 5.39% to 5.25%.
</body></html>

RAMS waives fees for first-home buyers

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After your spot of shopping on Collins Street, why not pop into the Bank of Melbourne branch at the Paris end for a free valuation of your investment property or a quick read of the latest investment tips from Alan Kohler or Robert Gottliebsen? Or even just sit back and watch Sky Business for a while?
Just don’t expect either of these two economic gurus to be standing around answering personal investment questions when you step into the recently opened 'Investore' at the Bank of Melbourne branch at 233 Collins Street.
<img src="/images/stories/2013/02/investore1.jpg" width="470" height="583" alt="investore1">
Despite the store beckoning you to enter with a collage poster featuring a slice of Alan Kohler's face alongside that of Robert Gottliebsen's, they won't actually be there. 
They will seemingly limit their involvement in the venture to providing half of their faces to the promotional material and allowing visitors to read their investment tips for free.
It’s a rather unusual venture with a Fairfax brand, Domain, sitting alongside a News Limited one, The Eureka Report.
The Investore, as explained by an onsite Bank of Melbourne employee, is not a pop-up shop but a permanent investment lounge with computers and rows of iPads where visitors can obtain free property reports provided by Domain's Australian Property Monitors and read unlocked stories and reports on the Eureka website from Kohler, Gottliebsen and other investment writers.
<img src="/images/stories/2013/02/investore2.jpg" width="470" height="283" alt="investore2">
It’s all part of efforts by the Bank of Melbourne to add extra value to its customers and build the brand and, one imagines, take on the likes of Bankwest, which was the first to pioneer the idea of a funky bank branch offering free coffee, the chance to buy property investment books and this writer's personal favourite, the coin counter.
Certainly, Bank of Melbourne been trying to separate itself (in the minds of customers) from its big four bank parent Westpac, with signs in Bank of Melbourne windows promising lower mortgage rates than the big four banks.
In addition to the free property reports and a browse of the Eureka website, there’s also the chance to sign up for free property and investment seminars presented by Business Spectator editor James Kirby and Consumer Affairs Victoria.
</body></html>

Bank of Melbourne offers free property reports and investment tips but don’t expect a chat with Alan Kohler

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Self-managed super fund investors are showing an increasing appetite for adding commercial real estate and residential property into their portfolios.
Figures compiled by the Australian Tax Office (ATO) show that from 2008 to 2012, commercial property investments by SMSFs increased by 77% while residential investments increased by 56%.
In total, real estate assets make about around 15% of SMSF portfolios, compared with 8% for the rest of superannuation industry.
SMSF investment in direct property 2008 – 2-12
<table style="width: 470px;" border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="154">
 
</td>
<td valign="top" width="154">
Dec 2008
</td>
<td valign="top" width="154">
Dec 2012
</td>
</tr>
<tr>
<td valign="top" width="154">
Commercial property
</td>
<td valign="top" width="154">
$30.7 billion
</td>
<td valign="top" width="154">
$54.3 billion
</td>
</tr>
<tr>
<td valign="top" width="154">
Residential property
</td>
<td valign="top" width="154">
$10.6 billion
</td>
<td valign="top" width="154">
$16.7 billion
</td>
</tr>
</tbody></table>
Source: ATO
This appetite for property comes with its risks, not all of which relate to the unpredictability of the property market.
According to superannuation expert Peter Nicol, there are three issues relating to high exposure to direct property: yield, liquidity and the indivisibility of property.
Nicol, a principal with the Perth superannuation division of accountants RSM Bird Cameron, says the issue of yield relates to the minimum pensions required to be drawn from the fund.
If an investment property fails to deliver the yield required and the SMSF members are in their pension phase (65 or older) they face the problem of “addressing the liquidity issue of the fund for pension payments and meeting compliance requirements”.
This, Nicol says, may require the fund to liquidate assets.
“Property is not noted as being an easily liquidated asset: in some cases it can take months to sell a property and realise the cash for payments,” says Nicol in an article written for the Australian Financial Review.
“Where a pension member is reliant on that regular monthly income for lifestyle, the illiquid nature of the asset can create serious issues and could result in a property being sold on less than optimal terms,” he says.
And the issue of liquidity is a problem because of the indivisibility of property compared with other more liquid investments such as cash, shares or bonds.
“In most cases direct property can’t be sold in pieces to provide the needed liquidity to meet pension payments. This means where cash is short in the fund to meet pension payments of the pension member who is in need of a lump sum to meet medical bills, holidays or for special occasions, there isn’t the ability to partially redeem a direct property,” he says.
However, he says there are options to address these issues including that SMSF members keep the property, if it is being used for some specific purpose such as it is used in the family business or it is to be handed to the next generation
“The SMSF can keep the property effectively until the last member’s death,” says Nicol.
Readers can find more <a target="_blank" href="https://www.rsmi.com.au/services_/business_solutions/self_managed_superannuation_funds/superannuation_financial_review">SMSF advice and tips from Peter Nicol</a> via the RSM Bird Cameron website.
</body></html>

SMSFs' ever-growing desire for property investments creating potential liquidity headaches

<html><body>
Plummeting first-home buyer numbers have raised fresh questions about recently introduced first-home buyer grant schemes on offer in NSW as well as raise issues about current housing affordability. 
The number of loans to first-home buyers in December 2012 fell to 14.9% according to ABS figures, the fourth consecutive month that this segment of the market has declined.
This a 37% decline on figures from a year ago when first-home buyers accounted for more than one in five new home loans (21.1%).
This was the weakest proportion of first-home buyers in the housing market since June 2004 and just two percentage points off the record low of 12.8% in March 2004 for ABS figures going back to July 1991.
The decline suggests that the new first-home owner grants in Queensland and NSW, which provide generous handouts of $15,000 – but only for those who buy or build new homes – have missed the mark and are as claimed by the likes of Ray White chairman Brian White nothing more than a builder or developer incentive.
In addition they suggest housing remains unaffordable or undesirable for most prospective first-home buyers with low mortgage rates and a decline in capital city house prices over the last few years failing to spur this segment of the market in a meaningful way.
The fall was sharpest in NSW, where there was a 3.2% decline as well as a smaller 0.8% drop in Queensland and a 1.9% decline in WA. 
“The state detail was something of a surprise,” notes Westpac, who called the December figures “another weak reading” for first-home buyer activity. 
“We had expected unwinding first-home buyer demand in NSW (from an earlier bring-forward relating to state government changes) to have run its course by December with weakness to instead centre on Victoria where stamp duty concessions coming in from January 1 would have encouraged many FHBs to delay purchases. 
“Instead, the sharp slide in NSW continued (–3.2%) with Victoria posting a slight rise (+0.3% for the month). 
Westpac estimates that approvals in this segment were down another 5.7% in December on a seasonally- adjusted basis.  
First-home buyer numbers peaked in May 2009 following of the doubling of the first-home owners grant to $14,000 for those buying existing homes and trebling it to $21,000 for those buy newly built homes in October 2008. 
First home buyers as percentage of home lending dating back to 1991 (ABS)
 
<table border="0" cellpadding="0" cellspacing="0" width="415"><tbody>
<tr>
<td nowrap valign="bottom" width="104">
Month
</td>
<td nowrap valign="bottom" width="104">
Number of FHB loans
</td>
<td nowrap valign="bottom" width="104">
% of new loans
</td>
<td nowrap valign="bottom" width="104">
Size of loan ($)
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1991
</td>
<td nowrap valign="bottom" width="104">
5654
</td>
<td nowrap valign="bottom" width="104">
20.7
</td>
<td nowrap valign="bottom" width="104">
71.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1992
</td>
<td nowrap valign="bottom" width="104">
7733
</td>
<td nowrap valign="bottom" width="104">
22.2
</td>
<td nowrap valign="bottom" width="104">
76.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1993
</td>
<td nowrap valign="bottom" width="104">
10139
</td>
<td nowrap valign="bottom" width="104">
22.4
</td>
<td nowrap valign="bottom" width="104">
83.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1994
</td>
<td nowrap valign="bottom" width="104">
7789
</td>
<td nowrap valign="bottom" width="104">
21.5
</td>
<td nowrap valign="bottom" width="104">
90.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1995
</td>
<td nowrap valign="bottom" width="104">
7218
</td>
<td nowrap valign="bottom" width="104">
21.9
</td>
<td nowrap valign="bottom" width="104">
89.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1996
</td>
<td nowrap valign="bottom" width="104">
8427
</td>
<td nowrap valign="bottom" width="104">
23.0
</td>
<td nowrap valign="bottom" width="104">
99.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1997
</td>
<td nowrap valign="bottom" width="104">
8047
</td>
<td nowrap valign="bottom" width="104">
21.0
</td>
<td nowrap valign="bottom" width="104">
104.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1998
</td>
<td nowrap valign="bottom" width="104">
8651
</td>
<td nowrap valign="bottom" width="104">
22.6
</td>
<td nowrap valign="bottom" width="104">
120.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1999
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
22.0
</td>
<td nowrap valign="bottom" width="104">
134.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2000
</td>
<td nowrap valign="bottom" width="104">
9654
</td>
<td nowrap valign="bottom" width="104">
22.3
</td>
<td nowrap valign="bottom" width="104">
123.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2001
</td>
<td nowrap valign="bottom" width="104">
12745
</td>
<td nowrap valign="bottom" width="104">
25.8
</td>
<td nowrap valign="bottom" width="104">
146.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2002
</td>
<td nowrap valign="bottom" width="104">
7998
</td>
<td nowrap valign="bottom" width="104">
15.9
</td>
<td nowrap valign="bottom" width="104">
160.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2003
</td>
<td nowrap valign="bottom" width="104">
7618
</td>
<td nowrap valign="bottom" width="104">
13.3
</td>
<td nowrap valign="bottom" width="104">
185.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2004*
</td>
<td nowrap valign="bottom" width="104">
7083
</td>
<td nowrap valign="bottom" width="104">
12.8
</td>
<td nowrap valign="bottom" width="104">
191.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2004**
</td>
<td nowrap valign="bottom" width="104">
7428
</td>
<td nowrap valign="bottom" width="104">
14.3
</td>
<td nowrap valign="bottom" width="104">
204.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2004
</td>
<td nowrap valign="bottom" width="104">
8845
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
210.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2005
</td>
<td nowrap valign="bottom" width="104">
10811
</td>
<td nowrap valign="bottom" width="104">
18.8
</td>
<td nowrap valign="bottom" width="104">
217.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2006
</td>
<td nowrap valign="bottom" width="104">
10241
</td>
<td nowrap valign="bottom" width="104">
18.0
</td>
<td nowrap valign="bottom" width="104">
228.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2007
</td>
<td nowrap valign="bottom" width="104">
11282
</td>
<td nowrap valign="bottom" width="104">
19.4
</td>
<td nowrap valign="bottom" width="104">
230.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2008
</td>
<td nowrap valign="bottom" width="104">
14142
</td>
<td nowrap valign="bottom" width="104">
27.2
</td>
<td nowrap valign="bottom" width="104">
271.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May 2009***
</td>
<td nowrap valign="bottom" width="104">
18744
</td>
<td nowrap valign="bottom" width="104">
31.4
</td>
<td nowrap valign="bottom" width="104">
279.4
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2009
</td>
<td nowrap valign="bottom" width="104">
11793
</td>
<td nowrap valign="bottom" width="104">
23.5
</td>
<td nowrap valign="bottom" width="104">
293.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2010
</td>
<td nowrap valign="bottom" width="104">
8199
</td>
<td nowrap valign="bottom" width="104">
17.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2011
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
21.1
</td>
<td nowrap valign="bottom" width="104">
285.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jan-2012
</td>
<td nowrap valign="bottom" width="104">
8043
</td>
<td nowrap valign="bottom" width="104">
20.6
</td>
<td nowrap valign="bottom" width="104">
282.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Feb-2012
</td>
<td nowrap valign="bottom" width="104">
7360
</td>
<td nowrap valign="bottom" width="104">
17.4
</td>
<td nowrap valign="bottom" width="104">
279.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2012
</td>
<td nowrap valign="bottom" width="104">
7902
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
281.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Apr-2012
</td>
<td nowrap valign="bottom" width="104">
7077
</td>
<td nowrap valign="bottom" width="104">
17.0
</td>
<td nowrap valign="bottom" width="104">
282.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May-2012
</td>
<td nowrap valign="bottom" width="104">
9110
</td>
<td nowrap valign="bottom" width="104">
18.1
</td>
<td nowrap valign="bottom" width="104">
288.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2012
</td>
<td nowrap valign="bottom" width="104">
8415
</td>
<td nowrap valign="bottom" width="104">
18.5
</td>
<td nowrap valign="bottom" width="104">
292.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jul-2012
</td>
<td nowrap valign="bottom" width="104">
8760
</td>
<td nowrap valign="bottom" width="104">
19.2
</td>
<td nowrap valign="bottom" width="104">
291.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Aug-2012
</td>
<td nowrap valign="bottom" width="104">
8921
</td>
<td nowrap valign="bottom" width="104">
18.6
</td>
<td nowrap valign="bottom" width="104">
288.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Sep-2012
</td>
<td nowrap valign="bottom" width="104">
8391
</td>
<td nowrap valign="bottom" width="104">
19.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Oct-2012
</td>
<td nowrap valign="bottom" width="104">
9215
</td>
<td nowrap valign="bottom" width="104">
18.7
</td>
<td nowrap valign="bottom" width="104">
288.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Nov-2012
</td>
<td nowrap valign="bottom" width="104">
7921
</td>
<td nowrap valign="bottom" width="104">
15.8
</td>
<td nowrap valign="bottom" width="104">
287.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2012
</td>
<td nowrap valign="bottom" width="104">
6557
</td>
<td nowrap valign="bottom" width="104">
14.9
</td>
<td nowrap valign="bottom" width="104">
293.9
</td>
</tr>
</tbody></table>
Source: ABS
*Record lowest proportion of first-home buyers
**Previous lowest proportion of first homebuyers after December 2012
***Highest proportion of first-home buyers
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First-home buyers at lowest share of new home loans in more than eight years: historical data to 1991

<html><body>
With the end of the financial year less than three weeks away, cashed-up property investors should be cognisant of the amount of the money they contribute to their funds.
The ATO has <a target="_blank" href="https://www.ato.gov.au/individuals/PrintFriendly.aspx?ms=individuals&amp;doc=/content/00106372.htm">issued a reminder </a>that there caps on the amount you can contribute to your superannuation each financial year that are taxed at lower rates.
If you contribute more than these caps you may have to pay extra tax.
The tax on non-concessional (before-tax) contributions that exceed the current $25,000 cap is 31.5% (plus 15% paid on your behalf by your super fund) while the tax on concessional (after-tax) contributions that exceed the current $150,000 cap is 46.5%.
Subject to government changes being passed in parliament, from July 1 2013 the government will increase the concessional contributions cap to $35,000 if you are 60 years old or over.
Individuals aged 50 and over will be able to access the higher cap from 1 July 2014.
These contribution cap limits may particularly apply to property investors who have disposed of an asset and wish to invest some of the proceeds into their self-managed super fund.
Other changes set to take effect from July 1 2013 are to allow withdrawals from super fund of any excess concessional contributions made from 1 July 2013 and that excess concessional contributions to be taxed at the marginal tax rate rather than the top marginal tax rate.
Investors though will need to know the difference between concessional and non-concessional contributions.
Concessional contributions apply to before-tax contributions while non-concessional contributions apply to after-tax contributions. 
Types of concessional (before-tax) contributions include:
<ul>
<li>employer contributions, such as compulsory employer contributions paid by your employer, any additional pre-tax super contributions your employer makes, salary sacrifice payments made to your super fund, other amounts paid by your employer from your pre-tax income to your super fund, such as administration fees and insurance premiums</li>
<li>contributions that you are allowed as an income tax deduction, such as contributions you make if you are self-employed (to claim a tax deduction for your personal super contributions, you must first complete a notice of intent to claim deduction in the approved form and give it to your super fund)</li>
<li>notional taxed contributions if you are a member of a defined benefit fund some amounts allocated from a fund reserve.</li>
</ul>
The ATO also warns that if you decide to split your before-tax contributions and give some to your spouse, these contributions count towards your cap.
Types of non-concessional (after-tax) contributions include:
<ul>
<li>non-concessional (after-tax) contributions that your employer makes on your behalf from your after-tax income</li>
<li>contributions your spouse (including a same-sex spouse) makes to your super fund, unless your spouse makes the contributions because they're your employer</li>
<li>personal contributions that are not claimed as an income tax deduction</li>
<li>contributions in excess of your concessional (before-tax) contributions cap</li>
<li>contributions in excess of your capital gains tax (CGT) cap amount</li>
<li>most transfers from foreign super funds, excluding amounts included in your fund's assessable income.</li>
</ul>
Your age affects the amount of the concessional (before-tax) contributions cap, how the cap applies and what options you may have.
The ATO provides an <a href="https://www.ato.gov.au/individuals/PrintFriendly.aspx?ms=individuals&amp;doc=/content/00106372.htm">online guide to super contributions</a>.
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Cashed up SMSF property investors face higher tax rate for excess super contributions

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The number of suburbs where you could be financially better of buying rather than renting has risen from 494 suburbs in December to 692 as of July, according to the latest RP Data Buy vs Rent Report.
The theoretical report lists suburbs across Australia where renters should think about doing the sums and perhaps looking at buying an equivalent property (if they can find one) rather than paying rent to a landlord.
The latest list is dominated by Queensland suburbs which make up more than third (242 suburbs) out of the 692 suburbs.
Greater Brisbane accounts for 71 suburbs while the remaining 171 can be found in the regional areas of the state.
There are 193 suburbs in NSW (73 are in Sydney), 75 in WA, 54 in Tasmania and 45 each in Victoria and South Australia.
Just two out of the 45 Victoria suburbs are in Melbourne.
Reflecting their relative unaffordability, there are just 29 Northern Territory suburbs on the list and six in Canberra.
A discounted variable mortgage rate of 5.4% and a three-year fixed mortgage rate of 5.15% have been assumed as part of the analysis.
Additionally, RP Data has assumed buyers hold a 10% deposit.
The full report is available to download for free at <a href="https://www.rpdata.com.au/buyorrent" target="_blank">rpdata.com.au/buyorrent</a>
</body></html>

Queensland dominates list of 692 suburbs where you could be better off buying than renting: RP Data

Preliminary data by research giant Charter Keck Cramer reveals a 54 per cent decline in Build to Sell apartments across Australia's capital cities, while the Build to Rent boom continues with a 378 per cent increase over the last five years.

Charter Keck Cramer's upcoming National State of the Market Report - Key Metropolitan Areas, scheduled for release in September, will reveal&nbsp;a dramatic transformation in apartment supply patterns across Australia's capital cities between FY2016-2020 and FY2021-2025.

The Build to Sell (BTS) apartment sector has experienced a substantial contraction, with total supply falling by 54 per cent compared to the previous five-year period. The decline represents a reduction of 149,200 apartments across all capital cities.

<img alt="BTS Charter Keck Cramer" data-entity-type="file" data-entity-uuid="3db2ddf3-e7c0-481f-b8b9-63efb365cb80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.26.34%E2%80%AFAM.png?VersionId=bsQl8inhZA7FeiPamnGvw1tse0obBdSd" />

Sydney led the downturn with a decrease of 73,600 apartments, followed by Melbourne (-42,800) and Brisbane (-26,800). Perth and Adelaide also recorded significant declines of 6,400 and 2,400 apartments respectively. Only Gold Coast and Canberra bucked the trend, with modest increases of 500 and 2,300 apartments.

In stark contrast, the Build to Rent (BTR) sector has emerged as a major force in the apartment market, recording a remarkable 378% increase in supply. This growth added 8,590 apartments across the capital cities during FY2021-2025. Melbourne dominated BTR growth with 6,160 additional apartments, while Sydney contributed 2,100 units. Brisbane and Canberra also recorded growth of 800 and 330 apartments respectively. Gold Coast and Perth recorded minor declines, while Adelaide maintained steady levels.

<img alt="BTR CKC" data-entity-type="file" data-entity-uuid="ca13ffd4-ab93-4828-afd2-4c3dccbd2b51" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.28.54%E2%80%AFAM.png?VersionId=SXNnpcJuFD36ViWOwF6izBBqcQc3NWao" />

“These preliminary findings indicate a fundamental shift in Australia's apartment development landscape, with traditional Build to Sell models giving way to institutional Build to Rent developments,” said Richard Temlett, Charter Keck Cramer’s National Executive Director of Research.

"This transition reflects changing investor preferences, regulatory environments and housing affordability challenges across major metropolitan areas.”

The complete Charter Keck Cramer National State of the Market Report – Key Metropolitan Areas will provide comprehensive analysis of these trends, their underlying drivers and implications for developers, investors and policymakers when released in September.

Joel Robinson

Build to Sell apartment supply drops 54% in five years across Australian capital cities

Verso Development Group is seeking to bring over 1,100 apartments to the heart of Brisbane's Toowong, with plans filed for a $1 billion, triple tower development known as Toowong Central.

The landmark urban regeneration project "aims to reshape the core of Brisbane’s inner-west riverside suburb."

Covering over 1.4-hectares across&nbsp;Sherwood Road, High Street, and Jephson Street, Toowong Central has been designed by KHA and will comprise three towers rising 49, 55, and 58 levels.

<img alt="Toowong Central" data-entity-type="file" data-entity-uuid="48611e3d-7123-4b99-b2cb-bfa4bc98024f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenities.png?VersionId=yKBexB.BgCkq4OET8fHDkWs0d3DjxOKJ" />

According to the Urban Context Report prepared by Urbis, Toowong Central is positioned as a “city-defining precinct reclaiming Toowong as ‘the best destination in the west’,” with a vision to deliver density differently, strengthen Toowong’s identity, and lead subtropical urban design.

There will be a wide range of apartment configurations, from one-bedrooms to five-bedroom penthouses, as well as short-term accomodation offerings. The design prioritises pedestrian permeability, with an activated public realm featuring a central civic plaza, laneways, and street-level retail and dining.

“The central square’s structure, programming, scale and location creates a social anchor - shaped by its edges, flexible for use, and animated by a diversity of experiences throughout the day and into the evening,” the Urban Context Report noted, reinforcing the project's ambition to become a vibrant community destination.

Design excellence was pursued through an international design competition, attracting entries from renowned practices such as UNStudio and BIG. KHA’s winning design distinguished itself with a ceremonial approach to the public realm, integrating terraces, tiered seating, and green infrastructure to promote social interaction and resilience.

The development builds upon two existing approvals: the 25- and 20-storey towers of the Aviary Toowong proposal, and a separate 25- and 24-storey approval at 88 Jephson Street. Consolidation of these fragmented landholdings under a precinct-wide approach allows for increased community value and cohesive urban integration.

Urbis Director Nicholas Stevenson said Toowong Central will bridge the gap in Toowong's current experience, unlocking the potential of the wider precinct.

"Overcoming experiential constraints and leveraging contextual advantages – Toowong Central will redefine Brisbane's inner west.”

<img alt="Toowong Central" data-entity-type="file" data-entity-uuid="73f7a702-625d-452d-9df2-30a0863ac1e8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/master.png?VersionId=TZdh6wxGC_8IIroXpdkZfuhlS8mFZnea" />

Toowong Central’s ambition extends beyond residential and commercial outcomes. Uses under consideration include a world-class hotel, university facilities, a museum, and health and wellness services, reflecting its role as a western gateway to Brisbane’s growing innovation corridor between the CBD and the University of Queensland.

Urbis Managing Partner James Tuma said Brisbane has no greater opportunity to showcase the future of urban living than Toowong – a sustainable, economically vibrant, and people-centric place that embodies the best of Brisbane.

[The plans] gives us a glimpse into our future as a globally relevant, youthful, entrepreneurial, and distinctly subtropical city.”

$1 billion Toowong Central to deliver 1,100 apartments to undersupplied Brisbane market

In <a href="https://www.apartments.com.au/developments/runaway-bay-qld-4216">Runaway Bay</a>, new townhouse-scale waterfront residences are rare - but ones built to the standards found on Sovereign Island are almost unheard of.

<a href="https://www.apartments.com.au/new-townhouses/ocean-suites-on-jennifer-10-12-jennifer-avenue-runaway-bay-qld-4216">Ocean Suites on Jennifer</a>&nbsp;changes that, delivering a calibre of construction and detailing that places its seven villas well above the typical market offering in this northern Gold Coast pocket.

Ocean Suites on Jennifer will be move-in ready before Christmas this year, giving buyers the chance to spend the summer on the water in one of Runaway Bay’s rare new waterfront residences.&nbsp;

[smartcode_project:default project_id=138718 project_image_fid=214444]

The development is a collaboration between <a href="https://www.apartments.com.au/architects/stuart-osman">Stuart Osman Design</a> and <a href="https://www.apartments.com.au/developers/sand-side-developments">Sand Side Developments</a>, with construction by <a href="https://www.apartments.com.au/builders/alroe-constructions">Alroe Constructions</a>.

Architect Stuart Osman says the intent from the outset was to create a home people would be drawn to. “When you build anything, the design is to make you want to go hang out in this house,” he says.&nbsp;

Ocean Suites on Jennifer’s design features a front façade softened with planter boxes, rear pool areas, and rooftop decks looking over the water.&nbsp;

Inside, voids and high skylights bring daylight deep into the centre of each home, while ceiling heights of 2.85 metres maintain a strong sense of volume.

Each four-level residence spans 345 to 388 sqm, with layouts accommodating multi-generational living - a ground-floor bedroom suite for older family members and upper levels for the rest of the household. A lift connects all floors.

[smartcode_project:default project_id=138718 project_image_fid=214435]

For Andrew Erwin, Director at NPA, the project’s appeal lies in both its location and the detail in execution.&nbsp;

"At Ocean Suites, you’ve got a canal-front setting with direct Broadwater access and a level of finish you’d normally only see in the city’s most prestigious addresses. The four-level layouts, the glass-framed living areas, the private pools, even the extended kitchens, every part of it has been designed with the buyer in mind,” he says.

Those buyers have so far been a mix of Gold Coast locals and interstate purchasers, many seeking a lock-up-and-leave holiday home or a downsized residence without sacrificing space for visiting family.&nbsp;

Older households with teenage children are a recurring profile, drawn to layouts that support multi-generational living and the ability to host extended stays.

[smartcode_project:default project_id=138718 project_image_fid=214432]

Material selection reinforces the project’s quality-first ethos, with every home appointed to a premium standard. Kitchens and ensuites feature engineered stone surfaces, complemented by prestige oak engineered timber floors, Victorian ash hardwood staircases, and soft loop-pile carpet.

Premium lighting, statement pendants, ceiling fans, and Fujitsu ducted air conditioning elevate both comfort and design. Each residence also includes a suite of high-end appliances as standard - Fisher &amp; Paykel integrated fridges, Bosch ovens, induction cooktops and dishwashers, Vintec wine fridges, and Franke sinks.

Beyond the interiors, residents enjoy an enviable lifestyle with rooftop terraces, private plunge pools, fire pit areas, outdoor showers, smart home automation, laundry chutes, and private pontoons.

[smartcode_project:default project_id=138718 project_image_fid=214452]

With no additional upgrade costs, Sand Side Developments underscores its no-shortcuts approach, delivering homes where luxury and amenity come as standard.

Osman adds that the kitchen has been designed as “the main hub of the house” with six metres high skylights above a galley-style layout that “makes it feel bigger, brighter, whiter” and “brings light into the centre of the home.”

Both architect and builder emphasise a shared commitment to delivering the intended design without compromise. “Working with Alroe’s structural team and their construction team, it’s been great to make sure that the look and feel that was originally intended is the result achieved at the end of the project,” Osman says.&nbsp;

[smartcode_project:default project_id=138718 project_image_fid=214453]

Outdoor living has been given equal consideration, with rooftop terraces designed for entertaining with a fire pit and bar, and spacious undercover patios featuring private plunge pools.

The marine access is as carefully executed as the homes themselves. An eight-metre gangway leads to a six-metre private pontoon capable of mooring vessels up to 30 feet, just 300 metres by water from the Broadwater.&nbsp;

Even the orientation of each villa has been optimised to capture long views down the canal, across the Broadwater, and south to Main Beach.

With construction in its final stages, just three of the seven villas remain, priced from $3.365 million to $3.695 million.

[smartcode_project_cta:default project_id=138718]

Sovereign Island standards come to Runaway Bay with Ocean Suites on Jennifer

Without local developer <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>, it could be argued that the small suburb of <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> would be left behind when it comes to both new housing and retail opportunities.

Gardner Vaughan, one of South East Queensland’s most reputable builder-developers, has been based in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> for the last decade. They plan to maintain their presence in the northern <a href="https://www.apartments.com.au/developments/brisbane-qld">Brisbane</a> suburb, just seven kilometres from Brisbane Airport and nine kilometres from the city, with the development of <a href="https://www.apartments.com.au/new-apartments/danby-lane-nundah-village-5-danby-lane-nundah-qld-4012">Danby Lane</a>, the first major project in several years in the heart of the town centre.

GVG will retain one of the commercial spaces in the new mixed-use building for their office headquarters. It will be located in the commercial podium, alongside several other new office spaces. Below will be a street-level retail precinct designed to reinvigorate the local economy, and above, 84 brand-new apartments.

[smartcode_project:default project_id=112531 project_image_fid=320114]

Over 60 percent of the apartments have already been snapped up, with buyers eager to secure one of the rare new apartments in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a>, as well as to benefit from Gardner Vaughan’s solid reputation and long-standing presence in the local community.

[smartcode_project:default project_id=112531 project_image_fid=320117]

Gardner Vaughan identified the site at the corner of Buckland Road and Danby Lane for its proximity to key amenities. Within 400 metres of the development, <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> Village offers a variety of cafes, restaurants, and pubs. <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> Train Station, just 400 metres away, provides a quick 20-minute train ride into Roma Street.

The development has also attracted young families, drawn to the proximity of not one, but twelve parks, with Boyd Park and Oxenham Park being the most notable. Established families have shown interest due to the close proximity of <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> State School and Mary MacKillop College.

The one- and two-bedroom apartments in the building have already been snapped up, while the larger three- and four-bedroom apartments—ranging from a generous 117 sqm to nearly 200 sqm—remain highly sought after. There are also just three exclusive luxury penthouses left to sell.

With its in-house construction capability, Gardner Vaughan has already commenced construction on-site and expects to complete the building by March 2027. It's hard to see another opportunity to buy brand new in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a>, where creating a site anywhere near the scale of the Danby Lane is becoming more and more difficult.

[smartcode_project_cta:default project_id=112531]

Why Danby Lane is the focal point for change in Brisbane's Nundah

<a href="https://www.apartments.com.au/developers/metro-property-group">Metro Property Group</a>’s flagship townhouse development, Citrine Townhomes in <a href="https://www.apartments.com.au/developments/rochedale-qld-4123">Rochedale</a>, has reached another key construction milestone, with the first stage of townhouses now in the defects phase.

All building works for Stage 1 are complete, with the internal roads asphalted, line marking finished, and the bin store slab poured.&nbsp;All essential services, including permanent power, sewer, gas, and water, are now connected and operational.

The defects process is expected to continue until late-August.

<img alt="Citrine Townhomes, Rochedale" data-entity-type="file" data-entity-uuid="f48ad1d8-7bb2-424a-a378-2caa4d34c27d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/017%20-%20%20ROLLEY%20PHOTO%20MEDIA%20%20%20-24072025.jpg?VersionId=o5BC3LgYTwxcufsjldO8mkPww3gix1NC" />

Stage 2 is also moving forward steadily, with all townhouses sheeted, the first coat of paint applied, and joinery installed throughout. Tiling has been completed on six of the seven blocks, and the pool is scheduled to be pebblecreted by the end of August.

Stage 3 continues to gather momentum, with external cladding completed on three of the eight blocks. All townhouses have been fully roughed-in for electrical, plumbing, and air conditioning, and the first two blocks have now progressed to internal sheeting.

Stage 1 and 2 are 100 per cent sold and there are now just 10 four-bedroom townhomes left in Stage 3, priced from $1,125,000.

[smartcode_project:default project_id=136295 project_image_fid=211]

Residents at <a href="https://www.apartments.com.au/new-townhouses/citrine-townhomes-rochedale-311-gardner-road-rochedale-qld-4123">Citrine Townhomes</a> can also look forward to high-quality shared amenities. The residents' facility will feature a pool, landscaped areas, and a BBQ space, contributing to a lifestyle-focused community environment.

Metro’s fully furnished display home has generated strong interest locally, reinforcing the market’s confidence in the project. Stage 1 and 2 are completely sold out and Stage 3 has officially launched and is selling fast. Just 10 townhouses remain for sale in the development.

[smartcode_project:default project_id=136295 project_image_fid=273134]

The broader Citrine development comprises 90 three and four-bedroom townhomes designed across two to three levels, offering a contemporary contrast to Rochedale’s surrounding single-family homes.

Located just 17 km from Brisbane CBD, Citrine is within walking distance to schools, parks, and the popular Rochedale Village, home to Coles, medical services, and dining options.

Metro Property Group remains on track for project completion, with settlements forecast for Stage 1 in October/November 2025, Stage 2 in November/December 2025, and Stage 3 in January/February 2026.

[smartcode_project_cta:default project_id=136295]

Larry Schlesinger

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