<html><body>
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>

lschlesinger-FZcF9M3vE6

RAMS waives fees for first-home buyers

<html><body>
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

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

First-home buyers at lowest share of new home loans in more than eight years: historical data to 1991

<html><body>
More evidence has emerged of the damaging impact that changes to first-home buyer grants in NSW and Queensland are having on home buyer sentiment.
First-home buyer (FHB) sentiment fell 12.8% according to the latest <a href="/news">Genworth</a> Homebuyer Confidence Index, driving a 5.1% fall in the overall index – its lowest level since 2008.
The bi-annual index, a measure of home buyer and would-be home buyer sentiment, fell from 98.4 to 93.4 over the six-month period while the first-home buyer sub-index fell from 98.5 to 85.9.
Click to enlarge
<a href="/images/stories/2013/03/genworthmarch27one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/03/genworthmarch27onethumb.gif"></a>
“Changes to incentives in New South Wales and Queensland states may be affecting FHB con?dence more broadly, with New South Wales having the lowest proportion of prospective FHBs who thought now was a good time to buy a home,” the report says.
“New South Wales and Queensland both saw a large fall in the number of FHBs in the market, according to ABS data, of 56% and 66% respectively between September 2012 and January 2013.”
In addition, mortgage stress among FHBs is rising with the report finding that 41% of recent first-home buyers are expecting difficulty with mortgage repayments over the coming year – up from 18% in September 2012. 
The fall in the overall index was primarily driven by a 42% increase in the proportion of borrowers who expect to experience mortgage stress over the next 12 months rising from 18% in September 2012 to 27% in March 2013.
“The sharp rise in the proportion of surveyed FHBs experiencing and anticipating hardship follows the removal of FHB incentives on established dwellings in New SouthWales and Queensland, which went into effect in October 2012.
“Amongst FHBs in Queensland, over-commitment/borrowing was cited as the main reason for expecting mortgage stress," says the report.
Bridget Sakr, chief commercial officer of Genworth, says the changes to government grants led to a bigger drop in first-home buyer confidence compared with the overall decline in the index.
The changes to the FHB grants impacted on the ability of FHBs to purchase the properties they want, Sakr told Property Observer.
She highlighted the findings of the report that fewer than one in four FHBs wanted to buy a new home.
Despite this sharp fall in FHB confidence, time to buy a home sentiment is still higher than it was a year ago, though it too fell from 54% of FHBs to 49% as of March 2013.
“FHBs still aspire to own a home, this has increased from last year, but most want an established home in an area they want to live,” Sakr says.
“The grant removals have hindered them from being able to do that.”
</body></html>

FHB grant changes drive home buyer confidence to lowest level since 2008: Genworth

<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.
</body></html>

 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

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

ATO warns investors about illegal SMSF rental property scheme

<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>.
</body></html>

Cashed up SMSF property investors face higher tax rate for excess super contributions

<a href="https://www.apartments.com.au/developers/draycon">Draycon Building</a> is nearing completion of Boutique Chevron Island, a 42-apartment development on the northern end of Chevron Island at 17–19 Parneno Street, with a limited-time offer of fully furnished apartments available.

Now more than 90 per cent complete, <a href="https://www.apartments.com.au/buildings/boutique-chevron-island-17-19-parneno-chevron-island-qld-4217">Boutique</a> has been shaped by one of the Gold Coast’s most tightly held island addresses, where riverfront outlooks and walkable access to Surfers Paradise converge.

For Draycon Building Managing Director Howard Dabit, the appeal of the site was immediate.

“I knew it was a good site as soon as I saw it,” Dabit said.

“The position and location on the north end of <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>, the way the river swirls around the site basically from the north to the east, it feels like the site is surrounded by the water. The height that we’ve got and the aspect looking north is beautiful. Eighty per cent of the apartments are looking north so they get that drenching sunlight coming in.”

[smartcode_project:default project_id=89709 project_image_fid=360922]

That northern orientation places the development within a stretch of Chevron Island defined by open river aspects and skyline views, while remaining embedded in the suburb’s established village setting.

Chevron Island has increasingly drawn owner-occupiers seeking centrality without the intensity of high-rise beachfront living. Positioned at the geographical centre of the Gold Coast, the island offers direct access to both the beach and key cultural infrastructure while retaining a neighbourhood-scale character.

Connected by bridge to Surfers Paradise, Chevron Island offers walkable access to beaches, riverfront parklands and a revitalised foreshore boulevard animated by walkers and cyclists throughout the day. The Pacific Ocean is only minutes away, reinforcing the suburb’s dual river-and-surf identity.

At the same time, Thomas Drive forms the spine of the island’s village life, delivering cafés, wine bars, casual dining and everyday services within easy reach. Independent grocers, wellness operators and neighbourhood retailers contribute to a community atmosphere that remains distinct from the vertical scale of the beachfront.

[smartcode_project:default project_id=89709 project_image_fid=360915]

In the opposite direction, the Green Bridge links directly to HOTA – Home of the Arts – placing galleries, performance venues and parklands within walking distance. Weekly markets and major exhibitions draw visitors from across the region, while residents return to a quieter residential pocket at day’s end.

Public transport, including nearby bus routes and the G:link light rail corridor along the coastal spine, strengthens connectivity north and south. Griffith University, the Gold Coast University Hospital precinct and established private schools such as The Southport School are all within a short drive.

Ongoing investment across Surfers Paradise, HOTA and the broader Southport corridor has elevated amenity while preserving Chevron Island’s comparatively low-rise residential character. It is this balance, walkable village atmosphere paired with metropolitan-scale infrastructure, that continues to differentiate the suburb from higher-density beachfront precincts.

Boutique comprises just 42 residences, designed to maximise river and skyline outlooks within this tightly held island setting.

Boutique Chevron Island is slated for completion in April 2026, with prices starting from $1,220,000.

[smartcode_project_cta:default project_id=89709]

Joel Robinson

Draycon Building’s Boutique Chevron Island places 42 residences at the heart of the Gold Coast

Sydney developer <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a> has secured planning approval for a $300 million residential development in Lindfield, marking the company’s second project on Sydney’s North Shore and its first on the Upper North Shore.

Located on Beaconsfield Parade and designed by DKO Architecture, the state significant development comprises three buildings of up to 10 storeys and will include 399 residences, including 59 affordable homes and 40 adaptable homes.

Residences will range in size from one, two and three bedrooms, with two-bedroom apartments accounting for over 60 per cent of the product make-up. Residents will have access to a broad suite of amenities, including a wellness area, indoor and outdoor recreational spaces, a pool, a gym, a community room and a golf simulator.

In line with Deicorp’s long-standing focus on creating transit-oriented communities, the project is located just 260 metres from the Lindfield Train Station, reinforcing its role in delivering well-connected housing close to established infrastructure, retail and local services.

The inclusion of affordable and adaptable housing supports greater diversity within the local market, while the mix of apartment types responds to demand from downsizers, young professionals and families seeking access to the Upper North Shore.

Deicorp Founder Fouad Deiri OAM said the approval represents an important milestone for both the company and the suburb

“This approval allows us to deliver well-designed homes in a location that is already supported by strong transport and community infrastructure," Deiri said.

"Our focus is on creating places that integrate into their surroundings and provide long-term value for residents, and the broader Lindfield community. Being within walking distance of the station ensures this project supports sustainable growth in the right locations."

Across its portfolio, Deicorp currently has 4,703 apartments under construction, playing a leading role in shaping connected, liveable communities across Sydney.

Its expanding portfolio of Metro-linked developments includes Tallawong Village, <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> in Five Dock, <a href="https://www.apartments.com.au/new-apartments/hyde-metropolitan-sydney-133-141-liverpool-street-sydney-nsw-2000">Hyde Metropolitan</a> in Sydney CBD, <a href="https://www.apartments.com.au/new-apartments/falcon-alexander-crows-nest-8-alexander-street-crows-nest-nsw-2065">Falcon &amp; Alexander</a> in Crows Nest and Showground Village, Castle Hill.

Deicorp purchased the Beaconsfield Paradise site last year. Construction is scheduled to commence in Q2 of 2026 and will be completed in 2029.

Deicorp expands portfolio to nearly 5,000 apartments with Lindfield project

In a joint venture with The Trump Organization, Australia developer Altus Property Group has announced plans to bring a Trump International Hotel &amp; Tower to the Gold Coast, marking the first Trump-branded project in Australia.

"Trump International Hotel &amp; Tower, Gold Coast is our first official project in Australia and reflects our unwavering commitment to delivering world-class luxury experiences in iconic locations around the world," Eric Trump, Executive Vice President of The Trump Organization, said.

"This development exemplifies the Trump brand’s dedication to quality, sophistication, and unmatched service, and we are thrilled to bring this vision to the vibrant Gold Coast community."

The 91-storey building, which will become the tallest in Australia at 335 metres, will feature a&nbsp;285-room luxury hotel bearing the trademark Trump logo. It will also include 272 luxury residential apartments, a three-level podium with an exclusive Beach Club, and over 3,400 sqm of premium commercial, retail, and dining space, revitalizing the central Surfers Paradise precinct.

“Trump International Hotel &amp; Tower, Gold Coast will be a truly unique offering in the Australian market, bringing the prestige and allure of a world-class luxury brand,"&nbsp;Altus founder and chief executive David Young said.

"Altus Property Group is proud of its track record in delivering landmark developments across Australia, and our expertise ensures this project will be an outstanding success."

Trump Hotel heads for the Gold Coast to become Australia's tallest building

More than a century after the Corrimal Coke Works first opened in 1912, the industrial landmark that helped shape the suburb is being reinterpreted as a walkable residential neighbourhood, with Stage One of <a href="https://www.apartments.com.au/new-apartments/the-works-stage-one-27-railway-street-corrimal-nsw-2518">The Works</a> now underway at 27 Railway Street.

For 102 years, the site was central to <a href="https://www.apartments.com.au/developments/corrimal-nsw-2518">Corrimal</a>’s economic and social identity before operations ceased in 2014. Rather than erasing that legacy, developer Legacy Property has embedded it into the masterplan, retaining and reinterpreting elements such as the iconic 1912 brick chimney and sections of the original C1 Coke Oven Battery, alongside the adaptive reuse of the former powerhouse building.

Stage One will introduce 181 apartments across low-rise buildings, offering predominantly two and three-bedroom residences with completion targeted for mid-2027. The scale and configuration reflect a deliberate focus on owner-occupiers, targeting those seeking a lower-maintenance home in a prime location within the northern suburbs of Wollongong.

[smartcode_project:default project_id=143415 project_image_fid=359833]

Apartments have been designed to maximise natural light and cross-ventilation, with floor-to-ceiling glazing extending living areas onto generous balconies. Engineered timber flooring, induction cooktops and 900mm ovens in larger residences support everyday functionality, while two interior palettes allow buyers to tailor finishes to their preferences. The material selection draws on a restrained coastal language, intended to connect homes to their surroundings rather than compete with them.

The Works forms part of a broader 18-hectare masterplan that will ultimately deliver around 550 dwellings, new parks, and a heritage precinct celebrating the site’s past. More than seven hectares are dedicated to open space, including Southern Park and a Village Green with community gardens and recreation areas. The creek corridor is being rehabilitated with 150,000 native plantings, restoring biodiversity to the site and softening landscape.

[smartcode_project:default project_id=143415 project_image_fid=359841]

Positioned adjacent to Corrimal Station and within walking distance of Corrimal Town Centre, the precinct places daily essentials, rail connections and local retail within easy reach. Wollongong CBD, including the hospital, university and entertainment venues, sits approximately 6.5 kilometres to the south.

For buyers more familiar with North Wollongong, Corrimal offers a different proposition: a well-established coastal suburb framed by beaches to the east and the escarpment to the west, with a strong sense of local identity shaped in part by the former Coke Works. The Works seeks to reinforce that identity by creating a connected, walkable neighbourhood between coast and escarpment, rather than a standalone apartment complex.

Sustainability underpins the development approach. The Works is targeting Wollongong’s first 5-Star Green Star-rated community, with water-sensitive urban design, recycled materials and energy-efficient buildings integrated across the masterplan. For residents, these measures provide not only environmental benefits but also reduced operational costs and future resilience.

[smartcode_project:default project_id=143415 project_image_fid=359842]

With construction commenced and display materials available to view, prospective buyers can now engage more directly with the project’s vision, reviewing floorplans, material selections and the broader masterplan in detail. For many local homeowners weighing a move, the opportunity to experience how heritage, landscape and contemporary design intersect may help bridge the gap between familiarity and the next chapter.

As Stage One progresses toward its mid-2027 completion, The Works represents a significant chapter in Corrimal’s evolution, transforming a site that once powered local industry into a walkable residential precinct designed for its next generation of residents.

[smartcode_project_cta:default project_id=143415]

Legacy Property’s The Works reimagines Corrimal’s century-old Coke Works

When it comes to developing in Melb​ourne's Bayside region, <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> knows exactly what buyers want.

With a longstanding presence in the area and a string of sell-out projects, Lowe Living consistently delivers developments that are as sought-after as their predecessors.

Their latest instalment is in <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a><a href="https://www.apartments.com.au/developments/hampton-east-vic-3188">&nbsp;East,</a> the same postcode where they have previously delivered Hampton Hill and Oceano. The developer-builder recently commenced construction on its newest project,&nbsp;<a href="https://www.apartments.com.au/new-apartments/marella-hampton-31-35-alicia-street-hampton-east-vic-3188">Marella</a>, a collection of 32 apartments just five minutes from the beach.

Site acquisition is paramount to success. Lowe Living rarely brings a building to market that isn’t within walking distance of essential amenities, whether it be the beach, a prominent retail strip, or a train station. Marella is no exception, located at its Alicia Street address, less than a kilometre from the retail heart of Hampton Street and Hampton Station.

[smartcode_project:default project_id=146197 project_image_fid=358495]

Equally important to Lowe Living is the architecture.

For Marella, they appointed <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, who explains that the architectural vision was to create a contemporary reinterpretation of the Californian bungalow, a style that’s iconic to Hampton’s heritage.

"By borrowing, abstracting, and reinterpreting elements of this quintessential style, such as strong datum lines, articulated columns, exposed structures, and roof tiles, our design strikes a balance between modernity and familiarity," says Cera Stribley.

"This approach ensures that the development is not only visually appealing but also contextually sensitive, resonating with Hampton's existing architectural landscape."

[smartcode_project:default project_id=146197 project_image_fid=358499]

The building features terracotta brick, soft cream masonry, and exposed metal detailing, giving it a tactile presence that is intended to weather gently over time.

Internally, the focus on lasting quality continues, with two and three-bedroom residences anchored by sculptural stone kitchen islands, natural light, and clearly defined transitions between living, dining, and outdoor spaces.

The layouts have been carefully designed. Open-plan zones extend to private balconies, with light-filled interiors and generous kitchen proportions, supported by Miele wall ovens, induction cooktops, and integrated fridge-freezers. These are not small apartments rebranded as luxury; they have been designed at scale, with ample storage, hotel-style entry access, and secure basement parking provided as standard.

[smartcode_project:default project_id=146197 project_image_fid=358492]

At the uppermost level, Marella’s Signature Collection penthouses offer city or bay views, large entertaining terraces (some with outdoor spas), and elevated finishes, including fully wrapped stone kitchen benches and a Liebherr wine fridge.

Flexible room arrangements allow for a fourth bedroom or secondary living space, sought-after by both empty nesters who want the space when family visits and families with older children.

[smartcode_project:default project_id=146197 project_image_fid=358498]

A residents’ lounge on the ground floor reinforces the project’s small-community feel. With a fireplace, private dining area, and adjoining terrace, it’s one of several shared spaces that balance amenity with privacy and scale.

Construction has commenced, with completion expected in early 2027.

[smartcode_project_cta:default project_id=146197]

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News