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

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The low interest rate environment has been good for home buyers and those wanting to refinance, while not being so good for those who live on their savings. Another group of people displeased with the falling cash rate has been those who fixed their home loans around two years ago.
Back then – in 2011, when the cash rate was 4.75% – banks were offering three-year fixed rate mortgages around 6.3%, and many borrowers did better than that.
Who was to know the Reserve Bank would get to the end of 2011 and almost half the cash rate over the next two years?
People with three-year fixed rate mortgages taken in 2011 are still paying 6.3% to be fixed, while variable rate mortgages are around 4.8%.
On a 350,000 home loan, that’s a monthly repayment difference of more than $300.
Even the lucky ones who got in on the 5.99% fixed rates are now paying a full 1% over the variable rate.
So should people with eight or 10 months left to run on their fixed-rate mortgages bail out and take a variable rate instead?
In the financial services industry, we call this a ‘break’.
Banks tie their fixed rates to the bond and ‘swap’ markets. And these markets are run on terms of debt: 30-day, 90-day, one year, three years etc.
If you want to stop paying your fixed rate mortgage before your three-year term is up, someone has to pay for that ‘break’, and it won’t be the bank.
Fixed rate mortgages include a page dedicated to the ‘break fee’. This is a number formulated on the size of the fixed loan, the term left on the loan and the profit the lender loses having to close-out your loan and accept lower rates in the market.
Your first job is to have the bank give you this number.
Then you must calculate the size of the break fee versus what you can save by moving to a variable interest rate.
There are a couple of tips I can give: firstly, always negotiate with the lender when thinking about breaking a fixed loan. All lenders are different and some will give you concessions on the break fee if you’re rolling over into a loan at the same institution.
Secondly, most lenders will allow you to roll your break fee into your refinanced loan, so long as you have the equity. This might suit you for short-term cash-flow reasons but remember that if you do this you’ll be paying interest on your break cost for years to come! So, this leads to my third point: if you do break and go to a lower cost loan, think about keeping your repayments the same. It’s a great way to speed your repayment of the loan and wipe that break fee.
As with everything financial, ensure you have accurate market and technical information. An expert adviser such as a mortgage broker could be a good place to start.

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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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Switching from a fixed rate to a variable rate: Mark Bouris

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The Reserve Bank kept official rates on hold this week, which means we have another month at the historically low rate of 2.50%.
However, commentary from economists suggests an imminent rise in official rates. So how do you take advantage of interest rates on home loans, while they’re still low? Think about some of these steps:
Know where you are: don’t get in a panic about interest rates without accurate information. Develop a picture of exactly how much your debt is costing you – if you can’t readily find the information, get it in writing from your lender. If you’re going to reduce your costs you have to know your starting point.
Know the market: how does your current loan compare to your neighbours’? Start on the comparison sites and see the state of the market.
Here’s a tip: when it comes to variable rate mortgages only use sites that allow you to rank the ‘comparison rate’, because this is the rate formulated by law with all the variables included and amortised. Many borrowers take mortgages that start at a low rate designed to catch their attention, only to find that the loan reverts to a higher rate after a year. Start with accurate market knowledge.
Know what works for you: getting your home loan costs down can include basic things like paying fortnightly rather than monthly, or paying extra amounts into the account. These methods typically accelerate paying-out the loan which means you pay less in the long run. But you’ll only do this if you have the right account – so find out.
Know your limitations: if you don’t have a well-informed view on where the economy and interest rates are going, you could look at fixed rate mortgages which allow you to lock-in the low rates for a period of time.
There are many lenders with three-year fixed home loans well below 5% which represents low-cost certainty for many Australians. Fixed rate mortgages can also be a good way for property investors to plan their costs. Be aware that banks rarely have fixed rates that allow borrowers to ‘beat’ the market, but don’t forget that you can also split a mortgage – half fixed, half variable – if you’re still unsure. 
Action: if you’re going to take advantage of the current low rates, you’ll need to take some action. You either get a better deal from your current lender or you go to a lender who has a better offer. And people do, over one million customers have left their financial institutions in the last year.
Either way, you’ll have to do something. In my experience, most lenders are prepared to find a better deal for the customers who are informed and business-like in their approach. If you can’t get a better deal from them, then you must be prepared to switch and when you this, you must have accurate information and realistic expectations.
Finally, the cost of money fluctuates in our economic system. Your job is simple: to reduce your costs by never paying too much.
Good luck.

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Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. 
You can contact Mark on <a target="_blank" href="https://twitter.com/markbouris" rel="nofollow">Twitter</a>.
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How to take advantage of low interest rates on your home loan: Mark Bouris

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The Coalition’s new paid parental leave (PPL) scheme – starting from July 1 2015 - will pay a replacement wage up to an annual salary of $150,000, funded by a levy on the 3,000 biggest employers.
No policy is perfect, and the Coalition’s PPL scheme is no exception, but I think this is a good move for a number of reasons.
Firstly, we need women to be involved in our economy where possible and we need our policy settings to encourage and support that. The good news is that female participation in the labour force is rising – from 60.3% in 2000, to 65.3% in 2011. That’s a 5% rise in just 11 years while the male participation rate was flat.
The problems for women are many: as the cost of living increases, they are compelled to work; when working women have children and stop working, it puts stress on household finances; when they do go back to work, women still absorb most of the home duties meaning their extra income often goes on child care costs; when women take time off to have children, they usually lose their superannuation contributions; and when women with kids do go back into the workforce their preference for part time and casual work reduces their income and their superannuation.
Therefore we are faced with this conundrum: women earn less than men during their working lives, meaning they have less superannuation. Yet women live longer and therefore have longer retirements to fund.
The government needs to be congratulated for ensuring that the new PPL scheme will keep the superannuation guarantee contributions going during the paid leave.
More still needs to be done to lift the average super balances of women to parity with men’s – in 2010 the average female super balance was around $40,400, compared to the average male balance of $71,600. But allowing women to take 26 weeks off to care for their baby, with no discontinuation of their super, is a really good start.
Small business owners are also going to benefit from the PPL scheme. Many women choose to work at large companies or government departments, attracted to maternity policies and benefits.
With paid parental leave being funded from Canberra, smaller business owners will be on a more level playing field with the big employers, because they’ll be able to attract and retain female employees of child-bearing age.
And women will be able to make employment decisions based on criteria other than maternity benefits.
In the end, superannuation could be the crucial part of this policy. But also watch women of child bearing age giving up long commutes to the CBD as they realise that working for a small business does not penalise them for having a baby.
 
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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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Superannuation will be a crucial part of the paid parental leave scheme:Mark Bouris 

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

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The election is finally out of the way and the government has a big agenda ahead of it. Right out of the gates it has announced a tax review, a financial services review, a competition review, and a review of government spending.
Importantly, the government has said that it will consult with and wants to hear from the people of Australia. This is a smart move - the expectation of a Coalition victory last week was cause in itself for improvements in confidence, and when confidence is lifted, so is spending and other factors that bolster economic activity.
So this new government brings the promise of change, but how, when, and where will they start?  I wonder which changes the general public would put through. I’m talking about the plumber in Parramatta working 12 hours a day six days a week, or the retired couple in Frankston who has seen their superannuation wither away. What would these people urge on the new government if they had the access and influence? What would you say to our new Treasurer, Joe Hockey, if you could spend the next month as his adviser?
Firstly, I wouldn’t assume Joe wouldn’t listen: he grew up in a family of small business owners and understands the plights of the average Australian well. This understanding is already evident in the Coalition’s commitment to reducing company tax rate by 1.5% and cutting regulatory burden on business.
So where would you start if you had the opportunity to speak up about the issues that matter to you?
I did a quick survey on Twitter and found that taxes were indeed at the forefront of most people’s minds. Simply put, most people think there’s too many of them and that they’re too high.
But which ones would you reduce, which would you scrap and which part of the system would you reform?
Most people understand that the political stability and regulatory structure we operate doesn’t come free. That means the tax system has to raise requisite amounts of cash before it concerns itself with fairness or efficiency. It’s a balancing act.
It’s the same with red tape. We all want an easier way of operating our businesses and creating the best possible opportunities for our families, but what red tape do we advise Joe Hockey to cut? What regulation actually makes sense and where are we tied up in unnecessary bureaucracy? When you start cutting the red tape, where do you stop?
Competition is another agenda item that affects us all. Market dominance by large conglomerates can hurt smaller businesses, which generally means that prices rise and choice reduces. This affects both business owners and consumers in industries from banking to manufacturing to supermarkets. So how we can bolster competition to create a more even playing field?
As we move past all negativity and criticism that comes with campaigning and into the command of a new government with fresh policies, now is a good time to speak up.  I worked with the Treasurer when he was Minister for Financial Services and I can tell you that this guy is not only smart and experienced, he listens.
This is probably the time to speak up. I’d love to hear your ideas.

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Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a target="_blank" href="https://twitter.com/markbouris">Twitter</a>.
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Confidence in new government a great start: Mark Bouris

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After another week of official interest rate decisions and rebounding house markets, it’s time to put property into perspective.
Most of what we read about property prices and values is of a short term nature – it allows us to track a market by sales.
In the latest release, RP Data-Rismark’s August home value index shows that Sydney house prices rebounded 5.4% in the three months to August, and in Melbourne they’d gained 4.8% over the same rolling quarter.
The average of the eight capital cities was 4.0% gain in house value over the quarter.
However, property is a long term investment so I look at property numbers that reflect deeper value and take in metrics other than price. For instance, RP Data’s total gross return. This is a number that shows property value not in averaged sale prices, but as rental income plus capital gain.
Total gross returns are crucial for landlords, investors and for self-managed super fund members, however it’s a measure that everyone should look at prior to entering the property market.
In the RP Data Index for August the best total gross return of residential property over the year to August was 14.5% in Perth followed by Sydney on 11.7%. Melbourne – in spite of some weak property results in the past two years – managed a yield of 8.3% on residential property in the year to August.
RP Data says the total gross return on residential property in the year to August, across the eight capital cities, was 9.9%. This is a solid result for property.
There are reasons to look at property yields.
Firstly, yields are a less volatile measure of a market than prices. When house values are low, rental income can reinforce the investment, and when the market is roaring – pushing housing supply into the market – lower rental income can be compensated by capital gain.
The second reason to look at gross yields is that it reflects a true measure of value. House prices show you what the market was prepared to pay in a given month. But capital gain plus income is a more sustainable measure of your expected returns over time.
RP Data’s Cameron Kusher has interesting figures in terms of house prices versus total gross return: in October 2010, Australia’s housing market peaked. But when it eased off, house values dropped until May 2012, and have not returned to peak levels.
But when total gross returns peaked in October 2010, they simply went flat until May 2012, and have been climbing ever since. Total gross return acknowledges a small hedging effect against price fluctuation – it shows deeper value.
And remember, even if you live in your house, it still has a rental value – it’s just a value you take in kind, not in cash.
So, when investigating a house market, start with prices but keep your eye on gross total returns.


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Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Keep your eye on gross rental returns: Mark Bouris

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Ever since I realised there was a ‘Generation Y’ I’ve been reading how educated, fickle, lazy and entitled they are.
I came to expect that anyone aged 15 to 30 would prefer a laptop to a car and would prefer the flexibility of cool employment to the stability of owning a home.
So it was strange over the past week to find news to the contrary.
A survey from Western Australia – the Financial Fitness Index – found that Generation Y had become more careful with their money than any of the other generations surveyed, with 56% becoming more conservative in the previous year.
In another survey conducted by the Co-Op Bookstore, they found that 94% of 17 – 29 year olds were planning to buy a home in the next five years, with average weekly savings of $150.
This hardly builds an image of complacency. However, watching this big cohort start to chase the Australian dream has made me wonder if the financial system is properly prepared for them.
One of the things we notice about Generation Y is their preparedness to change jobs, with the ABS labour mobility data showing that 20 – 24 year olds are three times more likely to change jobs in a year than 45 – 54 year olds.
Gen Ys also have ready acceptance of contract and project employment, with many of these skills-based projects being conducted with no entitlements.
Earlier generations found it hard to get a mortgage when they were hopping between employers and relying on contracts.
The discrepancy between how Gen Ys want to work and how the financial services industry operates doesn’t stop at mortgages. Our superannuation system is predicated on time spent in pay-as-you-go employment.
How is the generation currently in their twenties going to make this system work for them when their earnings come from contract employment, which usually excludes super?
The solution is not something we can put on the backburner: with an ageing population and with the oldest Gen Ys about to move into their high income years, there are ramifications for our national economy in terms of how financially stable we allow these people to be.
Home ownership is a huge part of financial stability in this country and I believe this generation will, to a certain extent, just have to knuckle down. Simply showing a savings history is not enough – lenders typically look for either full-time employees or long term written contracts.
But as the Gen Ys becomes more conservative, mortgage lenders will have to think about meeting them halfway.
There’s no point in creating an economy filled with contract employment if we then attempt to shut these workers out of the housing market.
So how are we going to make this work? Will Gen Y fake it and go into stable employment long enough to get a mortgage? Or will lenders become realistic about how the labour market works for twenty-somethings?
I’d love to hear what you think. <a target="_blank" rel="nofollow" href="https://twitter.com/markbouris" style="font-size: 14px;">Talk to me on Twitter</a>.
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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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Gen Y has a different approach to saving than we presume: Mark Bouris

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It concerns me that many mortgage holders are not responding to the very low official interest rate.
In the 1990s the official interest rate set by the Reserve Bank never went below 4.75%. During the 2000s, the lowest official rate was 3.0%, for only six months at the end of the decade.
Now we’re at 2.50% and the challenge for mortgage holders is ensuring they get the best out of this scenario, because it won’t last forever.
The starting point for any reviews on finance should always be information: ensuring you have accurate information, that the information is current, and that you understand it well enough to compare apples with apples.
While this makes sense, you might be surprised at the discrepancy between what people think they know and what they really know.
Yellow Brick Road has just completed a survey of mortgage attitudes and the results were an eye-opener.
The first number that grabbed my attention was the 62% of respondents who had not even looked at how their home loan compared to others in the past 12 months. And 35% had not considered refinancing to get a better mortgage deal.
The RBA’s cash rate has dropped by 2.25 percentage points in the past two years, to historically low levels. That so many mortgage borrowers are not even investigating how they could get a better deal is quite extraordinary.
There was a strong streak of inertia portrayed in this survey.
For instance, 56% of respondents said they had a home loan from one of the major four banks, yet 66% of respondents surveyed believed a competitive home loan rate is 4.9% or less. But hang on: none of the major four banks advertise a variable rate in the sub-4.9% range.
The discrepancy is jarring and it says something about attitude versus behaviour.
There was also a large number who didn’t really know what a good deal looked like, such as the 27% who said they believed a competitive mortgage rate would be 5.0 – 5.4%.
These information gaps and inconsistencies are hardly academic. A person who believes a good mortgage deal is over 5%, could be paying way too much – and that’s money that could be used or invested elsewhere.
By way of example, the savings on a rate of 5% compared to 5.25% on an average 30 year, $350,000 loan would be approximately $20,000. Anyone can go to an online mortgage calculator and work out the savings on their own home loan.
Australia’s current low rates are a bonus for those who are motivated. But it starts with you knowing the market. And a low interest rate environment is no time to be complacent.
I leave readers with this challenge: are you paying what you should for your mortgage?
What do you think?<a target="_blank" href="https://twitter.com/markbouris"> Talk to me on Twitter</a>. 
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Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
Photo courtesy of commons/flickr.
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Are you paying what you should for your mortgage? Mark Bouris

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The reduction of official interest rates to 2.50% is an historic event which raises a number of questions: how slow is the economy?
Have we reached the bottom of the interest rate cycle?
How are savers coping with the low returns?
I’ve had a lot of correspondence about saving this year, and I thought I’d make some observations about how to get the best out of your cash in such a low interest rate environment.
1. Know your goal:
This should be your starting point.
If you’re saving for a house or to go overseas, you might want different product features than if you’re planning to live on the yield from your existing lump sum.
So set your saving goals and ensure you’re looking at the right options for your money.
2. Shop around:
When looking for the best deal on your cash, you must be prepared to deposit somewhere other than your usual bank.
When the cash rate is so low, a difference of .05% can be important and you’ll only be aware of the difference if you stay informed.
Use the financial comparison sites on the internet.
3. Spread the money:
People trying to save a lump sum should consolidate into one high interest account, so they pay only one set of fees.
But if your lump sum has to pay you an income, I suggest having the cash in at least two places so you can offset poor performance in one, with the solid performance of another.
Have the bulk of your savings in a high interest cash account, but think about diversifying into term deposits and funds where your cash is invested in a mix of cash and bonds.
4. Understand your actions:
The pursuit of yields can lead people into depositing money in a product that only pays interest quarterly, or that locks away their capital for an inconvenient duration.
Or, you find a great return on your money only to discover that the high interest rate finishes after six months and then reverts to a much lower rate.
If your primary concern is security, remember that cash deposits in banks, building societies and credit unions (and other ADIs) are guaranteed by the government, up to $250,000.
5. Don’t cheat yourself:
The yields for term deposits are typically between 3.75 and 4% right now.
That spread can cost you several thousand dollars a year on large balances, so make sure you’re closer to the high end of the interest rate spread.
Also, if your cash earns 4% in an online saver, and you have a well-used credit card that charges you 15% and fees, you are cheating yourself by not making that credit card payment a priority.
And never forget inflation – your cash deposits must be at least ahead of inflation, or your gains are largely illusory.
Finally, try to be level headed.
Avoid panic and exuberance – they both lead to poor decisions.
Better to let the facts guide you towards good judgement.
 
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 Image courtesy of Sal Falko/flickr.
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Five tips to get the most out of a low interest rate environment: 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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