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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

A who's who of Australian surfing, business and entertainment has emerged on title records following the completion of Esprit Rainbow Bay, the latest boutique beachfront apartment development by former professional surfer Paul Gedoun's S&amp;S Projects.

The completed project has attracted an enviable collection of owners, many with long-standing ties to the southern Gold Coast and the surf culture that has helped define Rainbow Bay and neighbouring Kirra for generations.

Given Gedoun's own background in surfing, it perhaps comes as little surprise that some of Australia's most recognisable surfers have chosen to buy into the development overlooking one of the country's most celebrated stretches of coastline.

Pezet Matheson directors Jayde Pezet and Todd Matheson launched the project in late 2021, and have managed the sales campaign all the way through to its sell-out and recent completion.

<img alt="Esprit" data-entity-type="file" data-entity-uuid="08fc6261-b84e-4b09-8a44-66d3067fd0d1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-29%20at%208.51.05%E2%80%AFAM.png?VersionId=4AOcb6ETZwNUnMPdTtz1B3pZAIB_jgZ2" />

Former world champion Mick Fanning, who grew up in Coolangatta, secured an apartment in 2023. He paid&nbsp;$2.07 million. Last year he sold his Bilinga home for over $16 million.

Three-time world champion Joel Parkinson also purchased in the development, alongside big wave surfer Mark Mathews. Mathews bought the most expensive apartment in the building, spending just over $4 million.

Joining them is Rip Curl founder Doug Warbrick, whose company helped shape Australia's global surfing industry over the past five decades.

The appeal of Rainbow Bay has extended well beyond the surfing community.

International DJ Paul Fisher purchased an apartment through his investment vehicle, YLB Developments, an abbreviation of his trademark phrase "You Little Beauty".

The purchase comes as Fisher and his wife Chloe are developing their own luxury apartment project further north in Palm Beach. Their boutique beachfront development, Pescado, comprises just seven apartments on Jefferson Lane, which start from just shy of $6 million. The couple intend to retain the two-level penthouse as their Australian base between international touring commitments.

Melbourne Storm coach Craig Bellamy and his wife Wendy have also invested in Esprit, purchasing two apartments after spending decades holidaying on the southern Gold Coast. They also have a luxury apartment in Joe Adsett's Rockpool, less than 400m away from Esprit.

<h2>Boutique project draws owner-occupiers</h2>

Esprit launched in 2021 and sold strongly, with buyers drawn to its boutique scale, beachfront position and contemporary design.

The completed development comprises 94 apartments across 11 levels, offering expansive floorplans designed primarily for owner-occupiers rather than the investor market.

Crowning the building is Club Esprit, pitched as being the Gold Coast's first residential rooftop wellness centre. The roof features a&nbsp;25 metre magnesium lap pool, which is surrounded by wet daybeds and poolside cabanas,&nbsp;multiple barbecue areas,&nbsp;a yoga and relaxation play lawn, and a private dining room with a kitchen scullery, bar, lounges, and an outdoor terrace.

The wellness centre is&nbsp;fully equipped with a Technogym, ice bath, infra-red sauna, steam room, thermal room, and treatment room. The roof has views spanning&nbsp;Rainbow Bay, Snapper Rocks and the Pacific Ocean.

<h2>S&amp;S Projects continues to shape Rainbow Bay</h2>

S&amp;S Projects founder Paul Gedoun has become one of the key figures behind Rainbow Bay's evolution over the past several years.

After establishing S&amp;S Projects, Gedoun has focused on delivering lifestyle-driven apartment developments designed primarily for owner-occupiers seeking a permanent coastal home.

Esprit is Gedoun's third completed project in Rainbow Bay, following Flow and Awaken, both of which achieved record prices for the suburb.

He is now delivering <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, a 38-apartment development on Boundary Street that is currently selling, and has no plans to leave the precinct anytime soon. S&amp;S Projects has also lodged plans for its fifth Rainbow Bay development, an 88-apartment project on Boundary Street featuring a strong wellness focus.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">First look: S&amp;S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street</a>

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Joel Robinson

Who's who of buyers revealed as Esprit Rainbow Bay settles

Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

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Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

Mark Bouris

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