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The saying goes that if you predict a market collapse once a week, you’ll eventually be right.
I’m sensing this syndrome right now: we’re hearing a lot of commentators such as American property analyst, Harry Dent, calling the Australian property market a ‘bubble’. Local economists have also criticised the Reserve Bank of Australia who they say have used low interest rates to create an overheated housing market.
But I’m siding with the Reserve Bank. Our central bank has targeted the housing market as a way of triggering economic growth, given that growth is below-trend: the three non-trade components of Gross Domestic Product – business investment, government expenditure, household consumption – are all down. So using low interest rates to boost the housing market is a good way to prompt economic activity.
This is what the Reserve Bank said in its latest statement: "[the] effect of lower interest rates on housing prices is an important channel through which expansionary monetary policy supports economic activity."
Economic activity translates to Australians using low interest rates to buy and renovate houses, and it’s been working. House prices rose by 10% last year.
But what could transform this housing stimulus approach into a bubble?
Too much supply could be a threat, but there is no oversupply. House prices rose 10% in one year – demand is running ahead of supply.
Perhaps imprudent lending might create a bubble? This is highly unlikely. Australia’s lending criteria is as tight now as in the depths of the GFC, and we’re not racing to take out loans. This is what the RBA says: ‘The upswing in housing asset values to date has not been fuelled by a rapid expansion in borrowing. Growth in housing credit is gradually picking up but remains relatively moderate…’
What about an over-valued property market? The figures on the Australian property market often refer to Sydney, which recorded property price growth of 14.5% in 2013. But look further and see that Canberra, Darwin, Adelaide and Hobart all recorded growth less than 5.0%. Affordability is good for most Australians but as always, there are pockets of expensive property.
Would a bubble form if the market was dangerously imbalanced? Well, the retail banks control residential development and their policy for developers is to finance 50 – 60% of the project while demanding high levels of presale. The banks require a supply-demand balance, and the RBA knows this.
Let’s assume the RBA abandons its current policy and raises interest rates in 2014. The risks are obvious: you may depress inflation but you’d raise the value of the Australian dollar against the US, and you’d run the risk of dowsing the comeback in consumer confidence and trigger the housing correction that commentators are warning about. You might even push inflation too low.
The RBA’s plan is the best way forward right now. The cash rate is a good setting to keep inflation, the Aussie dollar and unemployment relatively low.
 
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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Don't listen to the naysayers, Australia's property market is strong

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People of my generation were raised with some rules to live by when it comes to securing our money from those who want to take it from us. They are still pertinent:
If it looks too good to be true… Be sceptical of what’s being promised and give it a reality check. If someone is offering you a ‘cash’ product with a return greater than typical term deposits or cash accounts, it’s probably not invested in ‘cash’. Also be sceptical of high-yielding property funds, big-promising stock brokers and investment managers who lack an Australian Financial Services License (AFSL).
The greater the return, the greater the risk: Entrepreneurs may want returns of 200% on their capital, but they’re prepared to fail to achieve this. Others may want low yields for zero risk, because they can’t afford to fail. And others chase moderate returns with the risk that in some years they won’t make any gains. Everyone has their own risk-return appetite – once you understand yours, scammers will find it much harder to con you.
Always get a second opinion: I’m amazed how many financial scams could have been averted by the victim seeking a second opinion. If you don’t have the knowledge to test what’s being promised, find someone who does have the knowledge and is independent.
You get what you pay for: Try to avoid ‘free’ or ‘discount’ advice, or investments where fees are waived, an in-house lawyer is provided or a property inspection or valuation is made available by the vendor. Good independent advisers are not cheap but they are acting for you, not for someone else. If you look at just about every financial scam, you’ll find a victim who did not have the protection of good advice.
What’s the rush? You have to sign right now? Why?
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
 
 
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Protecting yourself from financial scammers

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The Reserve Bank has made its first decision of the year on interest rates. The 2.5% cash rate will remain, and according to the RBA Governor Glenn Stevens, our economy is suited to low interest rates for the time being.
Retirees and pre-retirees who prefer low-risk cash investments may have to look at higher yielding investments this year given that cash is earning them around 1% over inflation.
But those in the wealth-building phase have a chance to use the low rates to their advantage. Lower interest rates reduce the overall cost of capital, they allow you to accelerate debt repayment, meaning you can build equity and wealth faster.
The current interest rate environment has increased competition among lenders. So if you’re seeking a new mortgage, do not simply sign up with your current bank or building society.
Look around and use the comparison websites because you’ll see at least a 1% gap between the most expensive and most affordable home loans – a noticeable difference once you’re repaying the loan.
Also, when you get down to a short list of lenders, insist on knowing their ‘comparison rate’. This is a legal formula which gives you the true cost of a loan and allows you to compare apples with apples. And understand that a loan promising a ‘discount’ on an interest rate falls outside the comparison rate law. It could mean anything.
With low interest rates forcing competition among lenders, price is not the only factor: you might be able to get a mortgage with flexibility and options at the price of a ‘basic’ home loan. But you must ask.
And what about refinancing? If you have a mortgage you’ll be targeted by many organisations wanting you to refinance with them, and my advice is to get the loan offer in writing and then work out if all the pluses and minuses make it worth shifting. This is a decision you have to understand yourself and there’s no substitute for a pen, pad and a calculator.
And remember that refinancing doesn’t stop with mortgages: you can fold credit card debt and personal loans into your low-cost mortgage and be paying much less for the debt.
Finally, what to do with fixed versus variable?
It’s tempting to lock-in a mortgage at a low rate for three years. Some people like the certainty, and you can save money if variable interest rates rise above your fixed rate. But the banks don’t offer three-year fixed loans so close to their variable mortgage rates if they think the cash rate will rise soon. And don’t forget that most fixed-rate mortgages lack the flexibility to make extra repayments, thus removing an option to pay less interest.
Low interest rates are fantastic for home buyers and mortgage holders; but you must think through what the advantages are to you. Then you need a plan and then you have to act. 
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.
 
 
 
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Taking advantage of low interest rates

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You may have caught wind that there will be an inquiry into the financial system early in the New Year. Whilst this news is probably snooze inducing for the most people, there are plenty of reasons why you should pay attention.
The financial system takes our deposits and lends us money for a home or a small business.  It can help determine whether we get wealthier or poorer – and it can affect whether we can afford to fulfill lifelong dreams of buying property or retiring with some comfort.
The inquiry will address some key problems with the system and Australians have a once in a decade opportunity to get involved. Here are some of my thoughts so far to make the system fairer and better for the hardworking people that it is meant to serve.
First, we need to see transparency in interest rate advertising required in legislation to protect Australians from ‘too good to be true’ deals. People need to have the ability to make informed decisions and compare apples with apples. After all, a mortgage is probably the biggest debt you’ll ever take on. You want to make sure you’re getting the fair deal on it.
Second, the two Australian dreams – a home and a comfortable retirement – are becoming unachievable for so many people. We’re taking on larger mortgages, later in life, and for longer. But given we know that one of the best indications of security in retirement is owning your own home, the system needs to take better account of that as well as the current focus on retirement income streams. It’s not one or the other – it’s both.
Thirdly, every Australian should have the ability to master his or her own finances. If you’re one of the few that can, either you were lucky enough to have parents that taught you these skills, or you have sought out professional financial advice. We need reform of our systems to make financial education a priority for all people, and from a young age.
My fourth point is that there needs to be more competition in the lending market. Smaller players can provide tailored, competitive and secure services and keep the system competitive and consumer-focused. In the past, government and the regulators have favoured the bigger ‘too big to fail’ players at the expense of their competitors. Yet size does not equal safety in financial systems – the GFC proved that – and as any economist will tell you, when there isn’t enough competition, Australians end up paying more.
Finally, our system is not geared for women, young people, small business owners, or for people that have irregular, interrupted income due to family, consultancy work or other situations that fall outside the nine to five norm. Accumulating an income to retire on seems like a fantasy in these cases and that’s why reform of superannuation contribution rules is necessary.
They are five simple points that I think will give us a fairer, stronger and more competitive financial system.
If you have some ideas, I’d love to hear from you.

<hr>
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a rel="nofollow" href="https://twitter.com/markbouris" target="_blank">Twitter</a>.
 
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Speak up now: Creating a fairer financial system

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There are many reasons to own investment property: you might want an asset for retirement, you might wish to rent where you live and own a property elsewhere, or property might be your choice of wealth-creation. Regardless of why you invest in property, there are a few things to keep in mind:
<ul>
<li>
Goal: be clear about what you want to achieve, and in what time-frames. Before you buy a property you should decide on your earning goals: will this be a negatively or positively geared investment? Will you invest in renovations to increase your rental return?
</li>
<li>
Budget: write detailed plans about what you have to spend, how much you will have to borrow, and what the borrowings will cost. Include the cost of renovating, repairs and maintenance as well as the predicted costs of management, insurance and rates. And then calculate rental income.
</li>
<li>
Research: Do your research before you buy a property. Go to real estate agencies in the area and pick up their ‘for rent’ sheets. See what rents are being asked for what kind of properties. Ask agents what properties they would like to manage. Go to some open days. Get a sense of which agents are on their game.
</li>
<li>
Inspections: if you’re buying a place to rent to others, basic things must be in working order that you might let slide if you lived there yourself. Always have an inspection done by a qualified expert.
</li>
<li>
Tax advice: don’t rely on barbecue chatter for your tax advice. If you intend to negatively gear your rental property, and claim the loss you make against your taxable income, then you should be advised by a solicitor or accountant, at least before the purchase and for the first tax return you lodge.
</li>
<li>
Fixed or variable: budget a scenario for a fixed rate and a variable rate. Fixed rates are currently very low, and give you interest rate certainty for two, three or five years. But variable rates provide you with flexibility. Many lenders allow you to split your mortgage between fixed and variable.
</li>
<li>
Renovation: do your best to assess the renovation requirements before buying the property, and put these in your budget. Don’t get carried away with renovations – stay within your budget.
</li>
<li>
Insurance: landlord insurance is imperative and you should contact a broker if the inclusions and exclusions confuse you. Renting property is a business and some of the features of landlord insurance might not be familiar. Get this right.
</li>
<li>
Management: there’s a clear choice. You either decide to manage the property yourself, doing basic maintenance and repairs. Or you use a managing agent who will charge a percentage of the rent. DIY managers of property can usually do the handiwork, but inexperienced owners usually stumble on tenant law and collecting rent.
</li>
</ul>
Investing in property is an excellent way to build wealth, but it should be approached like a business. Have a goal, have a plan and work within your budget.
Good luck.
 
<hr>
 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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Starting out as a property investor: The nine things to keep in mind

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For more than two decades I’ve been approached by people who want to work for me and who want to involve me in their business plans. During this time I’ve noticed that the people I want to be involved with are not just ‘successful’ in the material sense, but they have what I call the 'psychology of achievement'. That is, the ones who I want to talk further with have a way of thinking, a way of being.
Have a look at some of these observations and think about how they can be applied to your own circumstances.
<ol start="1">
<li>
Team builder: successful people think in terms of building teams of other achievement-oriented people, rather than trying to be the ‘lone genius’. This entails putting your ego on the backburner because you will always be trying to attract people who are smarter than you and who have a degree of their own mental autonomy. This means you have to have an eye to the medium-term goal, not the short-term ego-victory.
</li>
<li>
Strategist: the people who achieve the most in life never let tactics overwhelm their strategy. An example is Sir Richard Branson, whose fight to create the Virgin Atlantic airline saw so many tactical twists and turns, against so many powerful enemies, that many people would have become demoralised. Branson is an embodiment of this motto: tactics serve the strategy, not the other way round.
</li>
<li>
Principles: look at the people who seem able to cope with change and deal with set-backs. Invariably they rely on principles rather than following or imposing rules. Applying principles to ever-changing life is more efficient than setting rules and trying to shoe-horn the world into them. It’s also an effective way of managing your partners and smart employees.
</li>
<li>
Learner: the high-achievers of this world have a universal response to a hole in their knowledge. They find someone who does know, they ask, and they listen. Or, they sign up for a course, do a degree, go listen to a speaker at a conference. One of the most important aspects of the psychology of achievement is to avoid being a know-it-all. No one knows it all.
</li>
<li>
Networks: just as they build good teams in their organisations, achievement-oriented people develop broader peer networks from which they can glean experience and know-how. Two caveats: networks only work when you put in as much as you take out; and networks are never about name-dropping. They are mutual support-systems.
</li>
<li>
Energy: this might be the most important component of a psychology of achievement. You have to give a damn. Life unfolds in the moment, not in a spreadsheet or a business plan or a bank statement, which are all just snapshots of some other moment. High achievers understand this sense of urgency which is why they seem to be on the go most of the time.
</li>
<li>
Ideas: ideas change everything, because ideas are everything. Write them down, test them, train yourself to have more. Ideas are currency.</li>
</ol>
 
<hr>
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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The psychology of achievement: Do you have what it takes?

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One approach to building wealth is to have a financial planner: they set an investment plan, organise estate planning, superannuation and life insurances. And they measure your advancement against your goals. But how do you find a planner? Where do you start? Here’s a few ideas:
<ul>
<li>
Know what you need: Having a clear idea of your needs is a good starting point. If you’re an employee needing retirement advice you’ll have different needs to a business owner who wants a self-managed super fund.
</li>
<li>
Understand credentials: A planner should be a representative of an Australian Financial Services License (AFSL), which means the adviser operates under legislated standards. There are also two main professional bodies for financial planners: the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA). Both have codes of conduct and dispute resolution which provide certainty for clients.
</li>
<li>
What’s important to you? Think about who you want to deal with: it might be a person of the same age, the same gender or someone with a similar professional background to you. Know this before you search – it’s important.
</li>
<li>
Look at the FSG: Financial planners need a Financial Services Guide which tells you the firm’s specialties, and a profile of individual advisers. Read these closely because advisers can only claim a strength if they are qualified.
</li>
<li>
Call and meet: Get a short list and make some phone calls. Ask what they offer, what kind of client they usually deal with and what extra specialties exist in their practice. Then go and meet the ones you like.
</li>
<li>
Getting to know: Advisers know there should be a rapport between them and their clients, so most give you an hour of their time free of charge. Use this to get an idea of fees, processes and strengths.
</li>
<li>
Be prepared to pay: The old system of planning looked ‘free’ but the planner may have been taking commissions to put you into certain products. Planners and advisers now mostly charge a fee for service, which includes a Statement of Advice which could cost somewhere between $800 and $3000. And most adviser firms charge between $1000 and $3000 annually to manage your plan. This is your wealth you’re building – you have to be prepared to pay. Consider it an investment.
</li>
<li>
Decide on contact: Some investors want constant communication via emails and newsletters; others want one intense meeting each year. Be clear on how you want your adviser to communicate with you. Some are flexible – some aren’t. 
</li>
<li>
Making the most: Once you’ve selected a financial planner/adviser, your selection of them becomes an ongoing process which involves as much your input as theirs. This is where compatibility is important – if you’re actively involved in the plan, then you’ll get more out of your adviser.
</li>
</ul>
Finally, any approach to a financial adviser should emphasise your needs and situation. Make sure that every conversation is centred around you and what you're looking to achieve. It's personal, it's your future.
Good luck.
 
<hr>
 Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a rel="nofollow" href="https://twitter.com/markbouris" target="_blank">Twitter</a>.
 
 
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Nine tips for finding a financial planner

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I had a lot of mail from last week’s <a href="/expert-insights/finance/the-20-tips-to-ensure-you-get-your-loan">top 20 tips on getting a mortgage</a>. A lot of readers wanted to know how to save money when you already have a home loan. Here are some tips:
<ol start="1">
<li>
Have a plan: you should plan to own your home as fast as possible, and therefore pay as little interest as possible.
</li>
<li>
Pay attention to the rate: consider a $350,000 loan over 30 years. If you had a 5.3% mortgage and refinanced at 4.94% – maintaining the same repayments – your loan term would drop from 30 years to around 27 years and five months, saving around $60,000 in interest.
</li>
<li>
Be prepared to refinance: to save on a mortgage, you must be prepared to go to a lender with a lower interest rate than your current one. Your mortgage may be a good deal when you sign-up but five years later it could be expensive by industry comparison.
</li>
<li>
Understand the loan term: shorter loan terms usually mean you pay less interest and pay the debt faster. Let’s say you a have $350,000 mortgage at 4.94%, and you opt for a 25-year loan rather than a 30-year: you’d pay 19% less in interest, saving you $61,626. Shifting to a 20-year term will save you $120,199.20.
</li>
<li>
Repayment frequency is key: the higher the frequency of payment, the slower the interest accrues and the faster you pay off the mortgage. If you pay half the monthly repayment amount fortnightly, rather than monthly, or a quarter of the monthly payment weekly, this means you end up paying the equivalent of an extra month’s payment each year. Consider an average mortgage of around $350,000 and a 30 year term at 4.94%. You’d save around four years and eight months off your loan term and over $56,000 in interest, by paying the monthly repayment weekly or fortnightly.
</li>
<li>
Put windfalls into your home loan: Tax refunds, Medicare rebates and work bonuses should go into the home loan, reducing interest and speeding repayment.
</li>
<li>
Have the right loan: ensure your mortgage allows you to put in lump sum amounts. Many fixed rate loans don’t allow this. If you’re offered an offset mortgage that lets you put your income directly into the loan, make sure this suits you. It requires discipline.
</li>
<li>
Do it early: increasing your repayments and putting in lump sums is most effective when you do it early in the term of the loan.
</li>
<li>
Know your fees: the headline repayment figure in your mortgage agreement is not the only number you should look at. Lenders charge different fees, so be cognisant of any incidentals that may not be captured in the comparison rate.
</li>
<li>
Beware of interest only: don’t select an interest-only loan if you want to repay it quickly. Always opt for principal + interest.
</li>
</ol>
When borrowers ‘set and forget’ their mortgage, they usually pay too much interest and have the debt longer than they should. Get focused and save yourself a lot of money.
<hr>
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank" rel="nofollow">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a href="https://twitter.com/markbouris" target="_blank" rel="nofollow">Twitter</a>.
 
 
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Top 10 tips to save money on your home loan

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First time mortgage borrowers are tiring of being told that these are the cheapest interest rates they’ll ever see. More important is how to ensure you get a loan. Here are my top tips:
<ol>
<li>
Have a clear goal: Use online calculators to see what you need to save and how much the repayments will be.
</li>
<li>
Have a budget and a plan: you need a deposit and to reduce your weekly outgoings. You need to do this for at least six months.
</li>
<li>
Save a deposit: bigger is better.
</li>
<li>
Show consistent savings: lenders want to see evidence of good financial management, rather than windfalls. Use a separate savings account to make regular deposits and few withdraws.
</li>
<li>
Have stable and consistent income: lenders are generally less comfortable lending to someone who has had numerous jobs or long gaps between employment.
</li>
<li>
If you do change jobs, stay in the same field and show increased income. Apply for your mortgage before changing employers or starting a business.
</li>
<li>
Understand your budget: lenders will want to know your gross income, and your financial and living expenses to gauge your disposable income.
</li>
<li>
Know that most lenders credit-score you to get an idea of how much risk you pose. So you must minimise credit enquiries, job changes and changes of address. Next year Australia gets a credit reporting system where creditors disclose late payments, not just defaults.
</li>
<li>
Have a stable rental history and minimise moving houses or apartments.
</li>
<li>
Lower your limits on credit cards: every $1 of credit card limit stops you borrowing up to $5 of home loan. Reduce credit cards to one, and reduce that card’s limit to what you use. Pay-off and cancel the credit card if you can.
</li>
<li>
Stop applying for credit/store cards: it suggests you live outside your means.
</li>
<li>
Don’t take ‘interest free period’ store finance.
</li>
<li>
Ensure your bank accounts are in order. No late payments, over-limits, or overdraws. Lenders generally check or require account statements for the last three to six months when assessing your loan application.
</li>
<li>
Know your credit report: most lenders credit-score you on the Veda system which shows your current and past credit activity. You can buy your Veda credit file at <a href="https://www.mycreditfile.com.au/" target="_blank">www.mycreditfile.com.au</a>.
</li>
<li>
If you’re self-employed, get your taxes done before applying and make sure there’s no tax owing on your ATO account.
</li>
<li>
Reduce overheads: fancy car leases, big smart phone plans and cable TV charges can reduce your net income and affect your serviceability.
</li>
<li>
Move in with mum and dad if you can, but only if you’re going to save!
</li>
<li>
Talk to a broker: if you’re worried about your credit score and serviceability, a broker can get you prepared pre-application.
</li>
<li>
Don’t apply for too many mortgages. This affects your credit scoring.
</li>
<li>
Don’t lie to lenders, especially about other loans or credit cards.
</li>
</ol>
<ol start="8"></ol>
The basics always apply to mortgages. You need a deposit big enough to have 20% equity, and cover stamp duty and conveyancing. And you need to show you can service the loan. This is a 25-year debt, so take your time and get your preparation right.

<hr>
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a rel="nofollow" href="https://twitter.com/markbouris" target="_blank">Twitter</a>.
 
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The 20 tips to ensure you get your loan

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One of the most unpopular topics in personal finance is the insurance known as ‘life products’.
I suppose they’re unpopular because of what they insure against: death, permanent disability and injury. No one wants to dwell on injury or death.
However, look at it this way: life products are financial protection for your greatest asset.
Ask about someone’s greatest asset and they’ll say their house, their share portfolio, their superannuation. But for most people, their greatest asset is actually their ability to generate income. And income is usually closely tied to wellbeing.
So life products hedge against the risk that you’ll lose the wellbeing to generate income.
Life products include:
<ul>
<li>
life insurance (a lump sum paid to your estate if you die);
</li>
<li>
income continuance insurance (up to 75% of your income paid if injury or illness keeps you out of work for an extended period of time);
</li>
<li>
total and permanent disability (aka TPD), which pays a lump sum if you can no longer work due to disablement);
</li>
<li>
critical illness insurance, (aka ‘trauma’) which pays a lump sum if you’re unable to work. The diseases covered will vary according to the insurer, but all policies cover for what they call ‘seven core diseases’: cancer, stroke, multiple sclerosis, kidney failure, major organ transplant, coronary artery bypass and heart attack.
</li>
</ul>
There are three main categories of people who should at least look at these insurances: breadwinners with kids and a mortgage; tradies; and business owners.
Once you think about these insurances as financial risk rather than medical emergency, it becomes apparent why people take them out. If you can’t work, who will generate the income for your family? If you die – leaving a mortgage and kids –what does your spouse do about the loan and all the other debts and obligations?
A lot of tradies think they can rely on workers comp, and other workers claim to be covered by private health insurance. Many Australians think their employer will look after them and others assume there’s a benefit at Centrelink.
I suggest anyone relying on this sort of barbecue chatter seek out real information about the financial consequences of death, illness and injury. And remember you need to replace the income you’re accustomed to – a large mortgage can’t be paid on a disability pension and workers comp is very tightly defined.
I suggest you investigate your options, using experts when you need them.
Premiums, for the same product, are never the same. Policies contain different inclusions and exclusions. Superannuation fund members can get cheaper life products by buying them from their fund, but what are the inclusions and exclusions? How do they compare?
There are other ways to buy life products: industry associations build good products for their members, insurance brokers are a popular way for business owners to get the cover they need without paying too much, and some Australians get their life products through a financial adviser as part of their planning.
If you’re still confused, ask yourself this: If I insure my car for $20,000, what’s my income worth?
Good luck.
 
<hr>
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a rel="nofollow" href="https://twitter.com/markbouris" target="_blank">Twitter</a>.
 
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Life insurance is an important hedge against a loss of income: Mark Bouris

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

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Mark Bouris

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