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Glenn Stevens' statement on interest rates was bland but holds important reminders for property investors.
It's probably a sign of how stable our economy is that we wait for the slightest change in wording when the Reserve Bank (RBA) decides on the cash rate.
Last Tuesday the RBA board met and decided to keep the official interest rate at 2.5% – not only a historically low rate compared with the 5.2% average since 1990, but also a rate that's been kept the same since August 2013.
But it was the way RBA governor Glenn Stevens expressed himself on property prices and the Australian dollar that is worth looking at during the remainder of the year and into 2015.
For more than a month we've heard strong commentary from economists about unhealthy price inflation in the property market, driven by low interest rates. Some of that comment has predicted an end to negative gearing. I haven't joined this discussion because lenders' figures don't suggest a problem in the property market, and the Bureau of Statistics' House Price Index series shows we are just slightly above the index average since 2002.
However, the RBA governor in his statement did mention investment property: "Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets."
I think Stevens was right to address the property market with a bland statement like this. If nothing else, it's a reminder to property investors that they must do their homework and invest wisely regardless of what official interest rates are doing.
With an investment property, you are interested in a good location and access to infrastructure such as schools, shops, railway stations and playing parks. And you are also interested in average rentals and some historical data on rental yields.
But the first step in a good investment is buying well. This means not just paying a good price for the year, but a good price for the 10 to 20 years you want to generate income from this property. If you pay too much you'll lose on capital appreciation and it will take longer to generate clear funds from the rent.
It's one thing to get carried away at an auction and pay too much for the house you love, but an investment property is a business that must earn income and capital growth for many years.
So keep a cool head.
The other element mentioned by the RBA – that they expect the Aussie dollar to fall further against the US – is something that might give a boost to our economy. When our dollar was at parity with the US, Aussie exports were expensive and local manufacturers found it hard to compete in foreign markets.
Now that our dollar is at 85 US cents – and expected to fall further – our non-mining economy has a chance to pick up, expand operations and create jobs.
So don't be alarmed at the lack of big headlines from the Reserve Bank this month. A steady economy is a great thing when you consider the alternative.
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Do your homework, whatever the interest rate

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The release of a report this week shows self-managed superannuation funds (SMSFs) are more expensive to run than once thought.
The Rice Warner report into SMSFs found that if you have $500,000 and more in a self managed fund, it is cost-competitive with public funds, but if you have between $200,000 and $500,000 in assets, the financial viability depends on how much administration work you can do yourself and whether you need advice in investing.
The costs that large funds spread across thousands of members and billions of dollars have to be met by each SMSF. They include annual audits, tax lodgements, investment arrangements, advice, administration and legal costs.
SMSFs are favoured by professionals and business owners who are confident with financial responsibility, want control over their wealth and typically want direct ownership of property. SMSFs are also popular with retirees who take an active interest in running their affairs.
One third of all Australian superannuation assets are held in these funds.
However, control is one thing: you also have to make sufficient returns to live in retirement. If your fund costs are greater than your returns, you are not doing yourself any favours.
Luckily, there are other ways of gaining control of super while avoiding the headache of SMSFs.
For a start, you could ensure that you understand every option in your current fund’s portfolio. Control can start with becoming informed about which particular investment option you should be in.
If the choices aren’t there, look around: many public superannuation funds now offer options such as cash, term deposits and direct shares. So people may be going to the extra cost of establishing an SMSF when their preferred options are available in a public fund.
One of the real advantages of an SMSF is the access you get to direct property. Recent rule changes allow superannuation funds to borrow to buy property which has seen property promoters push SMSFs as a way of buying property. However, superannuation is just a tax structure. The investment decision must still follow fundamentals: does this investment give you the required income in retirement?
For conservative retirement savers, taking more control outside an SMSF could involve public products that invest in cash and bonds, to give a similar risk profile to cash but a higher return.
I mention this because around 29% of all SMSF investments are held in cash, even though conservative retirement savers can find security in a retail environment without having to administer their own super fund.
And don’t forget to calculate the insurance benefits in a public fund. Generally the life and TPD premiums are lower in a super fund than can be sourced through a SMSF.
A final word: in the end, super assets must compound in value and (after fees) at least outstrip inflation. If you want to be in a self-managed fund, you must ensure that the costs don’t inhibit the point of the exercise, which was to have enough money to live well in retirement.

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Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a target="_blank" href="https://twitter.com/markbouris" rel="nofollow">Twitter</a>.
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SMSFs are more expensive to run than first thought: Mark Bouris

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I was interested this week in a financial wellbeing survey, which focused on the gap between the size of superannuation, and what is actually needed for retirement. Just 23% of Australians are confident their super will fund a decent retirement. When it comes to superannuation, there are distinct phases: people in their teens and 20s don’t care; people in their 30s and 40s do care but they’re focused on career, mortgage and kids; and people in their 50s and 60s are panicking about retirement. Let’s start with the first group. Those new to the workforce don’t think about retirement, but their decisions now have ramifications 40 years later. The law says your employer has to put 9% of your wages into a complying super fund, so you start with the advantage of a developing nest egg with tax breaks. You owe it to yourself to shop around the funds and see what they offer. Secondly, I suggest you roll any super accounts your might have from previous employers into one super account. You should also put some extra super in each month and select which accounts your super goes into. Your super fund has various allocations, such as conservative, balanced, growth, international, property and so on. When you are young you should have your super in funds that ride the more volatile yet higher-yield shares-based funds. It gives you the best chance of having a large nest egg when you retire. Then we have people in their 30s and 40s. This is a difficult group to interest in superannuation because all of their earnings are going into mortgages and/or kids. But these are also peak earning years so income should be put away to be accessed later. In these years you should start with owning your own home. Secondly, you should be contributing more to your superannuation than the 9% your employer puts in. Fifteen per cent of earnings is a good target. And don’t forget to protect your earning power with life insurance, income protection insurance and total and permanent disability (TPD) insurance. With the complex interactions between tax, retirement savings and tax breaks, you can easily lose advantages that the law provides, so I suggest you get an adviser. The third life stage – people in their 50s and 60s – is the most complex because a certain amount of life has been lived and retirement is drawing closer. Start by knowing how much you’ll need to live on. Secondly, work on owning your home: either do this in your working years or use your superannuation to pay out the mortgage. Thirdly, you must get the most from super, especially if you own a business or you have a self managed super fund. Superannuation is designed to allow you to be a self-funded retiree. But you have to make it work to your advantage, and for most of us, that means taking advice.
Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/" rel="nofollow">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Sorting your super at every age

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There’s a new wave of financial services migrating beyond the computer and onto phones and tablets, as well as moving into social media such as Facebook.
But as these services migrate onto a device that fits in the pocket, people still need something more.
In my current business, Yellow Brick Road, we’re opening branches at a rate of one per week nationally, simply because people still want face-to-face discussions about their affairs.
The key, in my opinion, lies in the difference between the financial services you can turn into a “product”, and those you cannot.
People are happy to use financial products, but they really want advice.
The Nielsen Pacific Global Survey of Investment Attitudes was released a few weeks ago: 70% of Australians used the internet for banking and investment transactions in the previous three months. But the same survey also found that 54% of Australians had visited a physical bank branch in the previous three months.
This shows a nation that is using products but still need to be able to talk about more complex matters such as mortgages, life insurance and super.
It’s a quaint picture of a technology-driven country with a traditional heart. But the problems are in fact, far from quaint. An example of this could include our superannuation system, which puts the onus for retirement investment on the individual.
The first port of call for most people with super is not an advisor, but a product. The super fund member is mailed a brochure with describes the various products and the member ticks the boxes and sends it back.
The Nielsen survey showed just 16% of Australians currently rely on a financial planner or adviser, while 57% preferred to be in charge of their investment decisions.
Now consider the fact that 70% of investment-focused Australians currently maintain a shareholding of stocks, the worst performing assets.
I believe there are many forces that have pushed Australians away from being advised on their investments and their retirements.
Most banks don’t offer advice unless the customer is a wealthy “private client”; stockbrokers don’t give you the full service unless you have a certain amount to invest; and the superannuation funds have become the product.
That leaves the independent advisers and planners, who many Australians avoid because there is either a trust problem or the costs are perceived to be too great.
More should be done by the superannuation industry, the ASX, the government and regulators to encourage people to seek advice around complex and crucial financial arrangements.
However, people have to show some initiative in these matters and decide what’s really important. Most people who seek expert advice get something out of it: an insurance broker reducing your premiums; an adviser finding a lower fee super fund; a mortgage broker finding you a better loan or an accountant getting you a better tax result.
Aussies need to rethink how they balance financial products with advice. A product fills a need; advice is planning for life.
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<div>Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/" rel="nofollow">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.</div>
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For more, <a target="_blank" href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
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Australians need to embrace wise financial planning

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Housing affordability for first home buyers loomed large in the news this week, largely because properties in Sydney and Melbourne are selling for more than many first timers can afford.
But if you’re a first home buyer, is this really a time to panic just because you missed out at a couple of auctions?
If there’s 20 bidders at an auction, 19 miss out.
If you’re committed, you still have to save as much deposit as you need, and enough to cover the stamp duty and conveyancing costs. If you don’t have enough, you have to save more.
You also have to monitor your ability to pay the cost of the loan. So be realistic about how much income you can rely upon and what it takes to service your mortgage.
Or, could you do what most home buyers do and buy a cheaper property?
If you don’t want to adjust your goals downwards, you’ll have to adjust upwards your deposit, stamp duty and loan repayment equations.
Also, use an online loan calculator before saying yes to a low-equity mortgage. If housing values weaken again, 20% equity feels better than 10.
On a policy level, would you like to see governments releasing more land to meet demand? Or should government promote more competition in the mortgage market, creating more options for more consumers?
Should New South Wales reinstate the First Home Owners Grant for existing homes?
Regardless, I do wonder if the affordability story is the whole story. Might it have more to do with where people want to buy and less to do with a generation missing out?
Stephen Koukoulas, an economist writing in Business Spectator, uses Reserve Bank numbers and finds that new home loan repayments as a percentage of household income is around the same now as it has been for 30 years. He concludes, “There is no evidence of a first home buyers’ affordability problem.”
He goes further: the prices of so-called cheap city properties bought by older generations were offset by the high interest rates; the rising Sydney house prices are offset by the historically low interest rates.
Interest rates and property markets fluctuate, but households and lenders stay within basic serviceability ranges.
This may not be the desired conclusion for those who have set their hearts on buying somewhere beyond their resources. And it doesn’t fit with the idea of a generational conflict where one cohort is ‘shut out’.
Actually, every first home buyer finds it hard – people in my generation bought modest first homes with interest rates at 20%.
Perhaps the current first home buyers would be better served by recognising the opportunity rather than the problem? At 4.8%, a mortgage is currently cheaper than it will be again in our lifetimes.
This is a massive, historical opportunity. So forget about scapegoats and do what you need to do: which is boost your deposit, set your sights on what is affordable and think in steps – it’s a long road.
What do you think?

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Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a target="_blank" href="https://twitter.com/markbouris" rel="nofollow">Twitter</a>.
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First home buyers have no cause to panic: Mark Bouris

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We've all marvelled at the amount of information on the internet and the speed with which we can compare available products.
Nowhere has this access to information been better exploited than in financial services, where you can use websites to make cheap share trades, find the best priced mortgage and get travel insurance that saves you heaps.
But although e-commerce is now normal, Australians still distinguish between low cost convenience transactions, and high value strategic decisions. For most people there's still a divide between the ease of technology and the need for advice.
But how do you decide whether to buy online or use a broker or adviser?
One criterion might be size and importance.
Australians can search for mortgages online and apply over the phone. However, the Mortgage and Finance Association of Australia has found that of the growth in the mortgage market in the year to June 2014, 61% was driven by brokers. That was a 32% increase on the 2013 figure. Clearly, Australians like interaction with an expert when they take on their biggest debt.
The opposite is the case when applying for credit cards and operating bank accounts. For these transactional interactions we're comfortable to use the internet and call centres to administer our daily banking.
Consumers also transact directly online with their super and their share portfolios. This seems to work best with users who have good knowledge of the options and understand the choices.
Insurance is another matter. If you've been insuring your car for years, a quick price comparison on the internet can prepare you for buying more insurance over the phone or online at renewal time.
However, many insurances are strategic parts of life planning, and they need expert advice.
Even simple insurance such as home and contents has to be managed so you're never underinsured, and you aren't paying for things you don't need and being excluded from the cover you do need.
More than half of retail insurance premiums are written by advisers and brokers, probably because Australians think about insurance once a year and they need someone who thinks about it every day.
The advantage you get with an adviser is obvious in life insurances which include death cover, total permanent disablement (TPD), trauma and income protection. You can buy tax-friendly life policies in your super fund. But when you use an independent adviser, you can buy cover for your circumstances, with tailored inclusions and exclusions.
Life insurance issuers rarely have more than one top product line and premium at a time, with deals changing to showcase different products. Some insurers are strong in some occupations. An independent adviser knows this. Luckily, it isn't a choice between the internet or advice. The trick is to use both, according to their strengths and your needs. What do you favour? Internet or advice? I'd love to hear what you think.
Mark Bouris is executive chairman of wealth management company <a href="https://www.ybr.com.au" target="_blank">Yellow Brick Road</a>, which sells financial advice and home loans.
You can contact Mark on <a href="https://www.twitter.com/markbouris">Twitter</a>.
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Should you get your mortgage online or use a broker?

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When rates are low, prices usually rise and first home buyers can feel shut out. 
But all is not lost if you stick to a few simple tips.
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<li>Deposit: Lenders want to see you have at least 5% of the purchase price as genuine savings (generally you'll need 10 per cent overall). You can top up with money from your parents or grandparents, but you have to show at least six months of your own savings. Start saving, now. </li>
<li>Savings: Set a goal for your deposit amount and save in a high-interest savings account that's separated from household expenses. Set a weekly deposit goal, use direct crediting and if you're a couple, have one person's income going directly into savings. </li>
<li>Reduce debt: Eliminate or reduce the limits on your credit cards and store cards. Lenders look at the limit on your cards, not your balance. </li>
<li>Grants: The First Home Owners Grant can help with your purchase. But it must be for a new home construction; you can't use it to buy the land and lenders will not treat the FHOG as part of genuine savings. Do your homework because the grant differs slightly between states. </li>
<li>Income: Lenders like to see stability and want to see evidence that you will repay the mortgage. So you should demonstrate at least six months (but preferably one year) of PAYG employment, or two years of financials and tax returns if you're self-employed. </li>
<li>Shop around: You can find variable rate mortgages in the range of 4.6 per cent to 6 per cent. The 1.4 per cent difference, on a 350,000 loan over 30 years, is worth more than $300 a month. </li>
<li>Marketing: Watch for "discount" mortgages and special low offers. The low rates last for a year or two and then revert to a much higher rate. Always look at the "comparison rate". </li>
<li>Fixed: Many first-home buyers like to balance their budget for a few years, and a fixed loan creates certainty. However, once in a fixed loan, your flexibility is restricted and you may encounter break costs if you want to sell or refinance. </li>
<li>Vary it: Variable rates fluctuate with the market but they are flexible, allowing you to repay higher amounts and deposit lump sums from bonuses and tax refunds, speeding your repayment. You can refinance a variable rate loan without penalty. </li>
<li>Offset: When you put all your income into a mortgage offset account, the balance pays down the mortgage by the amount you have in there each day. It stops interest capitalising against you as fast as monthly repayments. Offset accounts suit good budgeters. </li>
<li>Price: Don't be disheartened if you can't buy what you want - buy the next-best and build a strategy for your next property. </li>
<li>Advice: Mortgage brokers are excellent for insights, strategies and getting you a good result. They're worth talking to. </li>
<li>Always remember: When borrowing money and buying property, the same basic rules apply to everyone. So do your homework, be prepared, take some advice and go for it.</li>
</ol>
Mark Bouris is executive chairman of wealth management company <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, which sells financial advice and home loans.
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13 simple tips to help first home buyers save for a deposit

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There’s something of a home loan ‘rate war’ going on at the moment, which can be great for borrowers. But it also creates pitfalls for the unwary.
Take some mortgage advertising I saw this week: it promoted a variable mortgage rate of 4.65% but beside it was a ‘5.21% comparison rate’.
Look at the difference: on a $300,000 25-year mortgage at 4.65% your total interest bill is $207,941. But if you pay 5.21%, your costs total $237,198. The difference between what’s calculated from the headline offer and the actual costs over the long-term is around $30,000.
This type of advertising is a common marketing device. The low interest rate is merely an ‘introductory rate’ which in this case lasts three years. And after three years the home loan reverts to a much higher rate.
So given the current interest rate cycle it’s a good time to discuss the comparison rate. The ‘comparison rate’ is a legislated requirement brought in by the federal government. It was introduced in 2003 at a time when ‘honeymoon rates’ were popular and advertised interest rates were not informing borrowers about the true long-term cost of their home loan.
It’s quite difficult for average borrowers to calculate what they really pay over the long-term if they pay one rate for, say, two years and then revert to a ‘true’ rate for the next 23 years.
So to resolve the confusion the government mandated a formula that all mortgage lenders must use in their advertising. It includes unavoidable fees and charges, and interest rates over a set period, which creates the comparison interest rate.
Because all lenders have to use the same formula, the result gives a borrower the means to compare the true cost of a loan before they commit to it, and it gives some reality to the headline interest rate.
This regulation set by the government is important, but it only goes so far. The key to getting the right loan is for you as a consumer to take this information and act on it. The law says that a comparison rate must be co-located with the promotional rate, and with the same prominence. But a comparison rate is useless unless borrowers are looking at it and registering what it means. In talking to people, I often find that consumers misinterpret the comparison rate as “X” lenders best rate compared to “Y” lenders best rate. This is not at all the case.
When you look down the most affordable variable rate loans (4.6%-4.8%) at a site such as RateCity, you see that those lenders with the best ranking have comparison rates almost identical to their advertised rates – that is, the rate they advertise is basically what the borrower will pay. But other loans only start at 4.6%, before reverting to something much higher.
Consumers are easily confused by the terminology and practices of the financial services industry. So if you’re searching for something as important as a mortgage, and a comparison rate gives you a chance to level the playing field, you really must pay attention.
Mark Bouris is Executive Chairman of wealth management company <a href="https://www.ybr.com.au" target="_blank">Yellow Brick Road</a>.<a href="https://www.ybr.com.au/"> </a>
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What the comparison rate really tells you about your mortgage

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Have a look at a home loan comparison website and you’ll see a growing number of variable rate mortgages are now below 5%.
With mortgages this affordable you could refinance out of an old expensive loan and into a low cost one; and it’s also a good opportunity to repay more than you have to – to build up equity more quickly.
But a lot of people are asking if the low rates mean it’s time to buy an investment property?
Firstly, I suggest potential investors separate their thinking between the mortgage interest rates and the investment itself. Long after variable rates have returned to normal levels, you’ll probably still own this investment and it should make financial sense.
The point of an investment property is to harvest the ‘total gross yield’ – that is, you want the property to produce rental income and capital growth. You want enough rental income to help pay the mortgage and meet costs month-to-month, and you want sufficient capital growth so that over time it becomes a more valuable asset.
If you can achieve a 5% per annum rental yield and the average growth in the suburb is 3% per annum, you have an 8% gross yield. But there are many things that can vary this result.
Does the property need renovations? Is it maintenance-intensive? Will you use a property manager? Is it close to amenities such as schools, shops and train stations and likely to be sough-after by tenants? All of these things will affect your yield over the long term, and property is a long-term game.
There’s really no substitute for homework – you must have a clear view about ownership costs.
You also have to think about negative gearing, which is a tax rule that allows you to take any losses on the property and use them to reduce your taxable income, thereby reducing your taxes.
This brings us to the cost of your mortgage. Many people want to buy an investment property simply because they can, but the cost of entry isn’t the end of the discussion.
The investment mortgage has to be repaid from income, while most people are also funding the family home loan from the same income. Even if negative gearing gives you a small tax break, you have to calculate if you could afford to pay the investment property mortgage if the rates moved upwards by, say, 2%, or 3%.
Fixed rate mortgages only give you breathing room for the term of the fixed rate – they don’t make rising interest rates go away.
Low interest rates make it affordable to buy, but you have to know what it costs to own it, which means understanding where interest rate rises will leave you.
And, a final hint: the best property investments are made at purchase. Try to buy a property at a good price, with low maintenance, in a high-demand area, where prices are just starting to pick up. Be patient and do your homework.
If you buy well, you’ll do well.
Mark Bouris is executive chairman of wealth management company <a href="https://www.ybr.com.au" target="_blank">Yellow Brick Road</a>.
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Interest rates are low, but does this mean you should buy an investment property?

ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

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<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

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There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Joel Robinson

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

<section data-element_type="section" data-id="b086848">
Fresh off completing its mixed-use Malvern project Malvern Collective, Kokoda Property Group has acquired a prime site on Richmond's Bridge Road.

They are planning a mid-rise residential development with&nbsp;integrated wellness amenities and a vibrant ground-floor retail and dining offering.

The site, at&nbsp;487–495 Bridge Road, spans&nbsp;1,650 sqm with 50 metres of dual frontage across Bridge Road and Palmer Street. It is currently leased to Adairs, and has a large retail building and 20 onsite car parks.
</section>

<section data-element_type="section" data-id="534a164">
Kokoda Property Group’s acquisition forms part of a broader phase of growth in Melbourne, building on momentum from the completion of Malvern Collective and the recent purchase of a Burnley Street site for the developer’s first commercial project.&nbsp;

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating.

“Melbourne is regaining momentum,"&nbsp;Stevens said.

"After a cautious period post-COVID, we’re seeing buyer sentiment stabilise and capital leaning back into well-located, quality projects. Victoria now benefits from deep builder capacity and competitive delivery pricing, creating a rare opportunity to bring design-led inner-city developments to market without compromising on craftsmanship.

“Richmond ticks all the boxes for us – connectivity, culture and everyday amenity – making Bridge Road the perfect address for an amenity-rich, multi-use development."

<img alt="Kokoda" data-entity-type="file" data-entity-uuid="9a8de51d-8092-480a-8b7e-e081816692c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-29%20at%208.54.27%E2%80%AFAM.png?VersionId=VRHpV5.6beOu2cieKHWrw3ErMPuVOAuj" />

Envisioned as an “urban lantern” the building will bring a distinctive new presence to Bridge Road with a sculptural retail frontage, designed to honour the street’s heritage character while contributing to its renewal.

Stevens said the acquisition reflects the developer’s commitment to design-led addresses in Melbourne’s inner city.

“Drawing on Richmond’s rich heritage and dynamic character, we’ve envisioned a contemporary building that respects the past while elevating the way people live today. With dual frontages, curated ground-floor spaces, and a focus on wellness, this project will contribute to the neighbourhood’s evolution, appealing to both downsizers and a new generation of professionals.”

Kokoda Property will now progress concept design ahead of a future planning process.
</section>

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating

First look: Kokoda secures Richmond site for new apartment development

Gold Coast developer Drew Group is fast approaching sell-out at its Main Beach apartment development, Lagoon Main Beach.

In the last nine months, Drew Group and sales partner Pezet Matheson have secured 31 sales totalling over $75 million, as the two-tower development advances towards completion under the expert eye of Hutchinson Builders.

“Today's buyers are more discerning than ever," Drew Group Managing Director Jon Drew says.

"It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

[smartcode_project:default project_id=108747 project_image_fid=193023]

Just over 50 per cent of recent&nbsp;sales have been to local buyers, reflecting the deep trust and connection within the Gold Coast community that Drew Group has developed over the years.

Demand has been particularly robust at the top end, with two of the three exclusive penthouses already sold, alongside five sub-penthouses. Only seven apartments remain in Lagoon's Signature Series — one&nbsp;penthouse and six sub-penthouses.

[smartcode_project:default project_id=108747 project_image_fid=284864]

Drew Group has also removed the much-maligned sunset clause from all contracts at Lagoon. The sunset clause — although rarely invoked, yet on occasion known to have been — allows developers to take back contracts on apartments should the building not be completed within the timeframe specified in the contract.

Pezet Matheson Co-Director Jayde Pezet says the fact Lagoon is&nbsp;within a year of completion, and has no sunset clause in contracts, provides certainty to buyers.

"This is paramount in the current market," Pezet says.

Drew Group has committed to providing the highest level of security inclusions — none more impressive than the Ubiquity Access Control System, a cutting-edge facial recognition technology that is one of the most state-of-the-art keyless entry systems on the market.

[smartcode_project:default project_id=108747 project_image_fid=190743]

One of the biggest drawcards to Lagoon has been the size of the apartments.

"It is unlikely that any future new development in Main Beach will be able to offer such spacious living at this price point," Drew says.

"Today's buyers are more discerning than ever, carefully evaluating amenities like gyms, spas, workspaces, and beach lockers, along with quality finishes. It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

Lagoon is set to complete construction in mid-2026.

[smartcode_project_cta:default project_id=108747]

Mark Bouris

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