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The proposed changes to super rules announced by the federal government last week will hit the back pockets of ordinary pensioners with small super balances not just those with property-laden self-managed super funds.
Federal treasurer Wayne Swan <a target="_blank" href="/news">announced that from July 1 2014</a>, earnings above $100,000 will be taxed at the same concessional rate of 15% that applies to earnings in the accumulation phase.
Swan said this would impact on just 16,000 account holders and result in a fairer superannuation system.
However, the announcement also included the extension of normal deeming rules to superannuation account-based income streams for the purposes of the age pension income test.
“Under the change announced today, standard pension deeming arrangements will apply to new superannuation account-based income streams assessed under the pension income test rules after 1 January 2015,” said Swan.
“All products held by pensioners before 1 January 2015 will be grandfathered indefinitely and continue to be assessed under the existing rules for the life of the product so no current pensioner will be affected, unless they choose to change products.
According to financial planner Phil Clinton the changes to deeming rules will mean that a single person with a modest pension of $150,000 will receive $26 less per week.
Speaking to <a target="_blank" href="https://www.2gb.com/article/pensioners-be-hit-hard-new-superannuation-rules">Ross Greenwood on 2GB</a>, Clinton, from Halcyon Wealth Advisers, explained that in the past if you had your money in an allocated pension – the next phase after accumulating it in a super fund – you would not be deemed to have earned anything from that fund and could claim a full pension.
“That was the benefit of having your money in that pension fund,” he said.
But under the proposed extension of deeming rules, from January 1 2015 the first $45,400 will be deemed to earn income at 2.5% and anything above that at a rate of 4%.
 
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Clinton provided the example of someone with a modest super fund worth a $150,000, who owns their own home (which is exempt from the asset test) and have bank accounts plus some home contents, which add up to less than $192,500 – the assets limit for a single homeowner before the age pension reduces.
“[Under the proposed changes] they are deemed to get 2.5% on the first $45,400, which equals $1,135 and the remaining $104,600 is deemed at 4%, which equals $4,185.
“So a pension would be deemed to earn a total of $5,319 that that they previously would not have earned.
“Currently they receive a full pension if their income does not exceed $152 a fortnight.
“Under this rule they will be deemed to have earned $204.57 per fortnight
“The pension reduces by 50 cents for every dollar over the $152 limit, so they will lose $26.28 per fortnight in pension,” said Clinton.
Clinton acknowledged the federal government's statement that products held by pensioners before January 1 2015 would be grandfathered indefinitely but said the key words were “for the life of the product”.
That he said was “the kicker”.
“What happens if you change from one allocated pension to another, you are now in a separate product?
“We don’t know for sure but they may remove the grandfathering in that case.”
As of March this year, a single person eligible for the full age pension can now expect an annual income of around $21,020.
A couple is eligible for around $31,700.
 
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lschlesinger-FZcF9M3vE6

Pensioners not just property-laden SMSFs to be hit by super changes: financial planner

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First-home buyers will not reap any benefits from record low interest rates if developers don’t bring new stock to market, according to Yellow Brick Road’s Mark Bouris.
Bouris told David Koch on Sunrise that he hoped that in the current circumstances property developers would supply more new property to the market.
“If they do more developments there is more choice for people,” says Bouris.
“But if that does not happen, all that will happen is the prices will rise and the saving that new buyers would ordinarily get from an interest rate cut will be cancelled out because prices will adjust for it,” he says.
Overall, he expects little impact on the economy from the rate cut, commenting that since the GFC people “don’t actually go and spend the extra money they have in their pocket” so “we are not getting the stimulus in the economy we would ordinarily get”.
According to Bouris, the rate cut could spark a price boom, but not necessarily a transaction boom.
His advice to borrowers is to ask their banks what is the biggest discount they can offer them against their advertised rate.
“The rule thumb should be at least a 50 basis point discount with some lenders offering up to a full 100 basis point discount.
“But if you don’t ask you won’t get it.”
For those considering a fixed-rate home loan, he suggests they wait until the big banks bring out their next fixed-rate offerings – not to take up what they currently offer.
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House prices will rise unless developers bring new stock to the market: Mark Bouris

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The peak body for professionals that provide advice on the fast expanding self-managed super fund sector (SMSF) is urging that real estate agents who recommend these investments and mortgage brokers who arrange financing for them be required to hold a licence.
It follows a growing number of cases and complaints against so-called “spruikers” targeted at unwary investors through free introductory lunches as well as ASIC clamping down on unscrupulous operators that don’t disclose the risks of such investments.
SMSF Professionals' Association of Australia (SPAA) chief executive Andrea Slattery, has told the Australian Financial Review it wants Treasury to licence mortgage brokers and real estate agents that provide advice in this area.
SPAA offers its own SMSF adviser and SMSF auditor accreditations.
Mortgage brokers and real estate agents are not a big chunk of the SPAA membership, which counts accountants, auditors, financial planners, lawyers, risk providers, actuaries, administrators and educators among its members.
She says there has been talk of greater regulation of those who provide SMSF advice, but little action to date.
In February ASIC said it was considering increasing its powers to include oversight of property investments schemes recommended to self-managed super funds, but nothing formal has been proposed to date.
In April, it released a report on the quality of advice in the sector and ways to improve it.
ASIC found that while most advice provided was rated as adequate there were pockets of poor advice.
ASIC found issues in the following areas: 
<ul>
<li>advice was not sufficiently tailored to the needs of the investor</li>
<li>replacement product disclosure was absent or inadequate</li>
<li>insurance recommendations were absent or inadequate</li>
<li>an inappropriate single asset class was provided to investors</li>
<li>suitable alternatives to an SMSF were not considered, and</li>
<li>there was inadequate consideration of the investor’s long-term retirement planning objectives.</li>
</ul>
APRA superannuation figures to the end of March show that SMSF assets increased from $473.9 billion to $496.2 billion for a $22.3 billion or 4.7% gain over the quarter with sector accounting for almost a third (31.5%) of the total $1.58 trillion superannuation pool.
According to SPAA research, more than three quarters of SMSF trustees buy assets such as property and shares directly rather than through a managed fund.
In May, ASIC cancelled the credit licence of Money Choice and banned its director, Matthew George, after an investigation found failures to comply with credit laws, responsible lending shortfalls and instances of unlicensed self-managed superannuation fund (SMSF) advice.
In April, it was revealed that <a target="_blank" href="/news">four Melbourne businesses running seminars on investing in real estate through SMSF</a>s are being investigated by ASIC over the potentially misleading nature of flyers, advertisements and online ads promoting these seminars.
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Real estate agents and mortgage brokers must have SMSF licence: SPAA

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The Australian Tax Office (ATO) is warning trustees of self-managed superannuation funds (SMSFs) to be cautious when investing in property.
Its warned arrangements that are “deliberately entered into to get around the law” can result in the fund's trustees being disqualified, facing civil penalties and even criminal charges.
The ATO has also joined ASIC by warning of those individuals and companies promoting property investments to SMSF trustees.
<a target="_blank" href="/news">Last week ASIC</a> revealed to The Australian that it is 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.
Acting tax commissioner Bruce Quigley says he is concerned people are using their SMSF to invest in property without fully understanding their obligations under the law or some people are seeking to take advantage of certain types of arrangements.
 "We have observed that some arrangements are deliberately entered into to get around the law, which can result in the fund's trustees being disqualified, facing civil penalties or even facing criminal charges.
“Those marketing properties to SMSF trustees as part of such arrangements could be referred to ASIC,” he says.
Quigley says investing in property can be a confusing area for some people.
"The fine details are important and trustees need to be sure that property is the right investment for their SMSF and that the arrangement is legal,"
"We have also seen instances where holding trusts have not even been established at the time the contracts to acquire are signed.
“In other instances the title of the property is held in the individual's name rather than the trustee of the holding trust. Another common mistake is gearing in a related unit trust, which is not allowed under the law," he says.
"Some of these arrangements, if structured incorrectly, cannot simply be restructured or rectified. The only option may be to unwind the arrangement which could involve forced sale of assets at an inconvenient time. This could be very expensive for the fund with potential stamp duty and tax consequences."
"I urge trustees to get reliable, independent advice when making investment decisions and to obtain advice from us if they are contemplating entering into these sorts of arrangements. The responsibility for ensuring their SMSF complies with the law rests with them," says Quigley.
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Australian Tax Office joins ASIC by warning SMSF trustees on illegal property investment arrangements

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Housing affordability improved for the seventh straight quarter in September to be at its highest level in three years, according to the latest HIA-CBA Housing Affordability Index.
Over the quarter, the index increased by 5.3% to 65.8% to be up by 15% compared with the same quarter in 2011.
Affordability improved due to the median dwelling price falling from $466,900 to $459,100, and mortgage rates falling from 6.4% to 6% over the quarter.
Affordability improved in all capital city and regional markets with Hobart the most affordable with an index score of 78.3 - up from 73.1, followed by the ACT (67.8 to 71.3) and Adelaide (70 to 71.1).
Sydney’s affordability score improved from 51.9 to 54.2 over the quarter, but remains the least affordable capital city market, followed by Melbourne (63.6), Perth (64.1) and Brisbane (68.5).
In Victoria, South Australia and Queensland, it is more affordable to buy in the capital city market than in the regions.
HIA chief economist Harley Dale says the run of consecutive improvements in some regional indices is even longer, “in some instances showing affordability has reached levels not seen since the early 2000s”.
“Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices,” says Dale.
“At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households’ willingness to engage in the residential property market.”
“Tentative signs of a recovery in transactions volumes should hopefully gather legs – another interest rate cut in early December would enhance the prospects of this occurring.
“An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity.”
A full explanation of how the index is calculated can be <a href="https://economics.hia.com.au/media/Affordability%20Index%20Methodology.pdf">downloaded on the HIA website.</a>
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Housing affordability improves to highest level since September 2009: HIA/CBA index

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DIY super investors should consider acquiring an NRAS property because of the positive cashflow benefits, according to a new report by property investment and financial advisory firm Onyx Wealth.
Investing in a property that qualifies for the government’s national rental affordability scheme (NRAS) is a way for SMSF trustees to avoid being in the position, where they hold a property that is both negatively geared and provides negative cashflow, according to report authors Paul Thewlis and Margaret Hardy.
Such a holding would require the SMSF to have large enough liquid assets and/or cash inflows to allow for these losses.
In an interview with <a target="_blank" href="https://www.propertyobserver.com.au/queensland/nras-and-smsf-investors-helping-keep-inner-brisbane-off-the-plan-market-afloat-david-devine/2012112858155">Property Observer last week,</a> Brisbane apartment developer David Devine said SMSF and NRAS investors were among the biggest buyers of off-the-plan projects developed by his Metro Property Development company, which has the two top selling projects in inner Brisbane.
Metro has marketed more than 50% of the 308 apartments in its Madison Heights development as NRAS-approved investments, compared with 20% in its first development, the Chelsea, now completed.
But yesterday, <a target="_blank" href="/news">property investment advisor Margaret Lomas</a> warned investors against investing in NRAS properties, labelling it a tax scheme intended for institutional investors and said investors considering the scheme should seek a private tax ruling "before taking the plunge on any scheme that sounds so good".
SMSFs can purchase an NRAS approved property, which provides an annual tax free incentive estimated at $119,833 over the next 10 years.
In return, the property must be rented out to eligible tenants at a rent at least 20% below market rent as assessed by an independent valuer, with eligible tenants determined by government income thresholds.
“NRAS properties have greater negative gearing than equivalent non-NRAS properties,” explain Thewlis and Hardy.
“By giving up 20% of the taxable rental income the SMSF increases its tax loss. Normally a loss is undesirable, but in this case it is usually offset by the value of the NRAS incentive.
“Take for example an NRAS property which has a market rental value of $300 per week. A 20% discount on that rent means the SMSF is giving up $60 per week of taxable income.
“At the same time, the SMSF gains $190 per week of untaxed income in the form of the NRAS incentive."
Due to superannuation act rules SMSFs can only purchase completed or off-the-plan property
The majority of NRAS properties purchased by Onyx Wealth clients are priced between $250,000 and $400,000.
Because they are new properties, they also have the tax benefit of having greater depreciation allowances than older property.
Another benefit is stamp duty savings in some states.
“SMSFs buying property off the plan can benefit from substantial stamp duty savings. For example, in Victoria and Western Australia, purchasers who buy apartments off the plan prior to construction only pay stamp duty on the land value apportioned to each individual apartment,” explain Thewlis and Hardy.
<a target="_blank" href="https://onyx.net.au/">Onyx Wealth</a> provides the following example to show income generated for a SMSF with no property investment, an SMSF with a normal property investment and an SMSF with an NRAS property investment:
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/12/onyx.gif" title="Click to enlarge"><img src="/images/stories/2012/12/onyxthumb.gif"></a>
 
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NRAS property investment can provide positive cashflow for SMSF investors: Onyx

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The federal government appears happy to allow the state governments of NSW and Queensland to break their commitment to offer “universal” first-home owner grants following the two states' decisions earlier this year to only incentivise new home purchases.
Since September 12 in Queensland and October 1 in NSW, first-home owners qualify for a $15,000 state government handout if they buy or build a new home.
First-home buyers who purchase an existing home receive nothing.
These decisions, aimed at stimulating the residential construction sector, are in clear contravention of state government commitments to provide a “universal” first home owner schemes (FHOS) to all buyers".
This looks set to change with the <a href="https://www.gstdistributionreview.gov.au/content/Content.aspx?doc=reports/finaloctober2012/00executivesummary.htm#P130_11433" target="_blank">GST Distribution Review Final Report </a>released at the end of November recommending that the states be relieved of their obligation to offer a universal FHOS grant.
“It should become a matter for States’ own policy decisions as to what financial assistance should be offered for new home buyers,” says recommendation 11.4.
It is now up to federal treasurer Wayne Swan to make consult with the states before making his final decision.
However, the states have not had any kind of reprimand, despite offering an incentive that has been called nothing more than a “builders incentive” and flying in the face of logic, given that a higher proportion of first-home buyers wish to buy an existing home than a new home.
This iss borne out in the latest Mortgage Choice consumer survey, which found that more than 47% of first-home buyers looking to purchase in the next two years are looking to buy an existing property with less than a quarter (22%) considering building or buying a new – the remainder are undecided.
In response to a number of questions from Property Observer a spokesperson for the Federal Treasurer’s office said that “regrettably” there was not much that could be said.
Property Observer had asked what is the Treasury’s position was on NSW and Queensland breaching their obligations by adopting these new grant arrangements and whether the Treasury accepted the view that these have become “builders grants” not a first-home buyers grant?
Instead, Property Observer was directed to the following paragraph in the media release issued following the release of the GST Distribution Review Final Report.
“I look forward to discussing the Panel's recommendations with State and Territory Treasurers at the Standing Council on Federal Financial Relations meeting on 17 December 2012, prior to announcing the Commonwealth's position once the Government has given thorough consideration to the complex issues addressed by the Report,” said Wayne Swan.
Speaking to Property Observer in November, Ray White chairman Brian White said the new grants were distorting the market “and not in a healthy way".
“It’s no longer a first-home buyer’s grant but a builder’s incentive,” said White who labelled it deceitful to describe it as a first-home buyer’s grant.
His comments follows the <a href="https://www.propertyobserver.com.au/news/reia-says-all-first-home-buyers-should-get-the-fhbg-not-just-those-buying-new-homes/2012102557430">Real Estate Institute of Australia (REIA) voicing concern</a> at the decisions by the NSW and Queensland governments as well as plans by South Australian government to end its $7,000 universal first-home owner grant in June 2014.
"Not only is this in breach of the InterGovernmental Agreement (IGA) but it ignores the evidence that 70% of first-home buyers have a clear preference for established houses,” said REIA president Pamela Bennett.
“The IGA clearly states that assistance to first-home buyers will be uniform and that an eligible home will be new or established.
Bennett also claimed that first home buyers of established homes “often embark on a program of home-improvement and renovation, which helps stimulate the building sector”.
WA, Victoria, Tasmania, the ACT and the Northern Territory continue to offer a universal $7,000 first-home owner grant.
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Wayne Swan set to assist NSW and Queensland push towards 'builders' first-home owner grants

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If Harry Triguboff were governor of the Reserve Bank, the cash rate would fall to 2.25%, a setting that the Meriton boss believes would encourage first-home buyers back into the market in a meaningful way.
In another yarn with Business Spectator’s Robert Gottliebsen, Triguboff said first-home buyers were not as responsive to interest rate cuts as they were in the past primarily because it is still cheaper to rent in places like the outer suburbs of Sydney than buy.
He believes a quarter percentage point shaved from the cash rate, as the RBA is anticipated to announce tomorrow at its December monetary policy meeting, or even a 50 basis point cut, would have little impact on the decisions of first-home buyers.
First-home buyers will only buy a property when they know it will leave them better off financially every month – when mortgage repayments are lower than rental payments.
Triguboff calls this an unprecedented attitude and one which is being felt by all developers and builders especially across the eastern seaboard and one which they did not expect.
Around a third of Melbourne residential land has been returned by building companies over the September, according to the latest report by the <a href="https://www.propertyobserver.com.au/land/one-in-three-melbourne-residential-lots-being-returned-to-developers-by-building-firms-report/2012112958179?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">National Land Survey Program</a> report carried jointly by Research Four and property consultants Charter Keck Cramer
Last week, <a href="https://www.propertyobserver.com.au/queensland/mirvac-refunding-all-off-the-plan-deposits-for-postponed-brisbane-and-townsville-residential-projects/2012112858163">Mirvac cancelled projects</a> and refunded deposits on projects in Brisbane and Townsville after very low off-the-plan sales.
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Rates need to fall a further 100 basis points to bring back first-home buyers: Harry Triguboff

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Self-managed super funds (SMSF) have increased their weighting to low-risk cash and term deposits as well as listed shares, but commercial property remains a substantial part of their portfolios.
The latest report on the sector from the Australian Tax Office (ATO) for the 2010-11 tax year shows declines in residential, non-residential property and listed property trusts investments as a proportion of assets held in SMSF portfolios.
SMSFs directly invested 78% of their assets, mainly in cash and term deposits and Australian-listed shares (a total of over 60%). While smaller SMSFs tended to favour cash and term deposits, larger SMSFs had a greater tendency to invest in listed shares, notes the ATO in its report.
“This is the first time over the three years (going back to 2008-09)  in which holdings of these two asset types (cash and term deposits and shares) have shifted in the same direction,” says the ATO.
“In turn there were small shifts away from all the other assets represented with a sustained shift away from listed trusts occurring over the three years.
“The data confirms the SMSF sector responds to changing economic circumstances.”
 
Click to enlarge
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Despite the general shift away from property, bricks and mortar remains a substantial part of SMSF investment strategy, with commercial property representing 11% of portfolios and residential property making up 3.5%.
In dollar terms, SMSFs have invested $48 billion in commercial property, $14.7 billion in residential property, $17.8 billion in listed trusts and $37.2 billion in unlisted trusts.
Listed shares account for nearly a third of SMSF assets (32%), followed by cash and term deposits (29%).
Listed trusts make up 4% of portfolios, and unlisted property trusts 8.8%. Many of these are property-related.
Click to enlarge
<a href="/images/stories/2012/12/absdec201.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/absdec201thumb.gif"></a>
The latest report shows that growth in SMSFs numbers continues.
Between the years ended June 2008 to June 2012 SMSF numbers have grown from almost 376,000 to over 478,000, representing growth of over 27%.
There are 913,550 members in the SMSF sector, almost 8% of roughly 11.6 million members in Australian super funds.
Collectively they hold $439 billion in assets.
Over this four-year period, the average assets of SMSFs grew by 12% to $963,000.
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SMSFs turn to low-risk deposits and shares but commercial property still big part of portfolios: ATO report

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Economist Steve Keen has delivered a damning verdict on the impact of first-home owner grants, saying they only serve to drive up property prices and push first-home owners out of the property market. 


The embattled economics professor and columnist, currently in a legal dispute with his academic institution the University of Western Sydney, says the new doubled $15,000 first-home owner grants being offered by the NSW and Queensland state governments – labelled builders’ grant by Ray White boss Brian White – aren’t as damaging as the previous broader grant to buyers of existing properties.

Keen labelled the recent accusation levelled by acting NSW opposition leader Linda Burney that Premier Barry O’Farrell had abandoned first-home buyers by cutting the grant for existing home and removing stamp duty concessions (unless you buy or build a new home) as “bollocks”.

“First-home buyers weren’t locked out by the ending of the first home vendors’ grant: they were locked out by the impossibly high prices that this grant has helped generate over the 30 years since it was first invented,” says Keen.

Keen says former prime minister Kevin Rudd’s doubling and tripling of the first-home owner grant from 2008 to 2010 caused the last spike in house prices, with the real beneficiaries those vendors who sold their first homes to first-home buyers – hence why Keen calls it the "‘first-home vendors’ grant" – and the banks that took the extra deposit and heaped first-home buyers with “initially three and ultimately over 10 times as much more debt”.

“The grant should be abolished, and governments should keep their hands out of asset markets.

“The O’Farrell government is still in there with its grant to purchasers of new properties, but that isn’t as damaging as the broader grant to buyers of existing properties as well.

“In that sense, I applaud the O’Farrell government for limiting the damage done to first-home buyers – and indeed the economy – by the grant,” he says in a column for Business Spectator.

Keen says the purpose of the first-home owners grant has never been to give first home buyers a helping hand, but has “always been used as a way of giving the economy the economic equivalent of a steroid injection”.

“First-home buyers have instead been the sacrificial lambs of an asset-price-inflation route to apparent national prosperity,” says Keen.
 
<hr class="system-pagebreak">
Keen says former prime minister Bob Hawke was the first to use a first-home buyers grant after he beat Malcom Fraser at the 1983 election, not to help first-home buyers but as a way of “reviving the housing market and perhaps the economy”.

He says it worked a treat, and allowed Paul Keating to claim the mantle of greatest treasurer ever.

But, Keen says, the grant also “supercharged house price rises”.

According to Keen, every time the government has introduced a first-home owner grant, the effect has been the same and can be observed by looking at house price before and after its introduction.

He says without government-injected stimulus, house prices have risen more or less in line with inflation, but have diverged noticeably to deliver real growth on the back of first-home owner grants.

“This is when the myth that house prices always rise took hold in the Australian psyche – without the awareness that this was not a natural phenomenon like sunrise, but took not only rising leverage from the banks, but also active intervention in the property market by both state and federal governments.

Keen is currently embroiled in a Fair Work Commission dispute with the University of Western Sydney over delays in processing his voluntary redundancy while at the same time facing a corruption watchdog enquiry after telling his economics students he could not fail any of them because they would not be able to re-sit exams due to the university no longer offering an Economics degree course.

A tribunal hearing involving Keen and UWS began yesterday in Sydney while UWS has already referred the matter to ICAC.

Keen tweeted that it was confidential hearing at the request of the university.

Keen explained what he told his students in an interview with ABC News radio yesterday.

“I told the students that I would not fail anyone given the circumstances that their subject was quite possibly being abolished and they were told about it two weeks before the exam for that subject would take place and of course if they failed, there wouldn't necessarily be a subject there for them to repeat the following year and I certainly wouldn't be teaching it so in that situation I just couldn't see how I could fail anybody.

He says he “probably overstepped the mark”, but claims UWS has “blown the matter out of proportion as part of a battle over the cuts to economics”.

Keen says he has been invited to two universities in London to apply for professorships and has also applied to his alma mater, the University of Sydney, for the professorship of political economy.
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State handouts turned first-home owners into “sacrificial lambs”: Steve Keen

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

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For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

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Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Larry Schlesinger

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