<html><body>
The Reserve Bank reduced the official cash rate to 2.5% last week, which is good news for people with a mortgage.
However, I’m concerned that this low interest rate environment has produced a very confusing borrowing market for consumers.
With rates coming down and competition heating up, lenders have had to pull out all the stops in order to attract and retain customers.
One tactic that has become popular amongst marketers is to highlight the discount rate in mortgage advertising.
Discounting isn’t new.
Back in the 90s, banks used give their high income customers preferential treatment by offering them discounts, otherwise known as professional packs, with the hope that they could reel the customer in and sell them on other products over the medium to long-term.
Now, as interest rates have dropped and margins on each loan are pressured, the discounting strategy is being used as a broader customer acquisition and retention tool. But with one key difference.
Back in 2003, the advertising of honeymoon rates became very popular, whereby the lender would promote a low introductory rate with no mention of the true long term cost of the loan.
So legislation was created to control interest rate advertising by introducing what’s called the comparison rate. 
The comparison rate is a formula that includes all the costs and fees and it factors in any potential short-term discounting to give the borrower a clear picture of the loan’s true rate, the rate they’d be paying over the long-term.
Comparison rate legislation is still in place today.
However, advertisers who are looking to get their product out to the market in the simplest and most effective way possible, have moved away from advertising the interest rate and the comparison rate in favour of advertising just the discount.
So now you’ll see ads spruiking a “1.05% p.a.” discount off for the life of the loan, but the interest rate is nowhere to be seen, leaving the consumer to dig to find the actual rate.
This makes things all the more difficult for the borrower who just wants to know the true rate that they’ll be paying on their loan.
So now that you know how it works, I urge everyone seeking a mortgage to look past the discounts and to focus on the comparison rate, the true rate that you will end up paying over the life of the loan.
This won’t always be easy because the discounts are designed to catch your attention and change your thinking.
They make you feel like you’re getting a good deal, which may be true for a pair of sneakers or a new sofa. But with interest rates, there is a lot more to the equation than just the per cent off.
So at the very least, find out how much your loan is costing you, after the discounts and deals. Go searching for your true rate, and make sure it’s competitive with what else is in the market. If it isn’t, go get a better one.
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.
</body></html>

mbouris-tauSvXGAM2

Look beyond the discount rate to find the true cost of your mortgage: Mark Bouris

<html><body>
A noticeable side effect of low-confidence economies is that businesses start to behave more like spectators than participants. They enter a limbo where they are waiting for a ‘sign’.
This is concerning in a nation like Australia where in a population of 22 million we have 2.1 million business owners.
But you can establish your own sense of the economy and decide on your own confidence. Here are five indicators you can analyse for yourself:
<img alt="numberonejuly11" height="44" width="35" src="/images/stories/2013/07/NUMBERS/numberonejuly11.jpg"> Growth: Australia’s growth in gross domestic product is currently around 2.4% per annum, which is below the 50-year average of 3% but higher than the current average of developed economies (1.6%).
Growth is a measure of how much an economy is expanding each year and is a good starting point for confidence: Australia’s GDP growth is forecast to end 2013 at 2.3% and rise to 2.8% in 2014.
<img alt="numbertwojuly11" height="41" width="35" src="/images/stories/2013/07/NUMBERS/numbertwojuly11.jpg"> Inflation: Inflation is the measure of how much the cost of good and services rises in one year.
Australia uses the Consumer Price Index which averages the prices in a basket of 11 typical consumer items.
To get the inflation figure, the RBA uses different analyses of the CPI. The one that matters is probably the ‘trimmed mean’ which takes out the anomalies.
If inflation is too low, there is not enough economic activity; if inflation is too high, there is too much activity.
The perfect zone is between 2 and 3% and the current rate is right in the middle and expected to be the same in 2014.
<img alt="numberthreejuly11" height="46" width="35" src="/images/stories/2013/07/NUMBERS/numberthreejuly11.jpg"> Employment: The rate of unemployment is important for predicting spending and confidence.
Unemployment is currently rising off a low base and expected to be close to 6% by the end of 2013.
When you consider that France has unemployment around 11% and the USA has 7.7%, Australia is not looking too bad.
Our average unemployment rate since 1978 is 6.95%.
<img alt="numberfourjuly11" height="45" width="35" src="/images/stories/2013/07/NUMBERS/numberfourjuly11.jpg"> Interest rates: The Reserve Bank can lower official interest rates to stimulate borrowing and spending, and raise rates to slow exuberance.
The current official rate is 2.75% – the lowest it has been in 50 years.
<img alt="numberfivejuly11" height="38" width="35" src="/images/stories/2013/07/NUMBERS/numberfivejuly11.jpg"> Government net debt: There are many arguments about what constitutes problematic government debt.
The real problem is that the more the government owes, the more it has to use tax revenues to repay debt.
Australia’s net government debt is around 12% of GDP. Compare this to the US on 89% and the UK on 86%.
Anyone can keep an eye on these basic economic indicators and come to their own conclusions.
The Reserve Bank of Australia and the Australian Bureau of Statistics have excellent web sites and news alerts, and we can all use them.
You can’t change economies, but you can absorb information, decide on your own levels of confidence and plan accordingly.
Be informed – take back control.
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.
 
</body></html>

5 indicators for the state of the economy

<html><body>
People confused about superannuation often ask me how they can make the right decisions about their retirement savings.
As I pointed out <a href="/news">in last week’s column</a>, there are no secret formulas for having enough investments so you can fund a comfortable retirement.
What you should be aiming for is to be able to create an income in retirement that covers around 75% of your working life income.
That’s about the only universal formula for retirement savings, and even then, the mix depends on whether you retire as a couple, retire owning your own home, and how much investment risk you can bear in retirement.
Most retirement strategies are technical and financial. And so they should be.
But retirement savers also need to get their own personalities into the strategy.
For instance, you should <a href="/news">understand your risk profile </a>– preservation, moderate, balanced, growth, aggressive – which helps you decide how much weighting to give to shares, cash, property and fixed interest investments such as bonds.
Then you need to get more personal and understand the impact of your life stage on the financial picture.
With life stages comes decisions and priorities. Here is a guide, based on age, that will help you understand what you should be paying attention to:
-          Aged 25 to 35: you’re in an accumulation phase, taking advantage of higher disposable income and fewer family-related expenses. You have a long investment life ahead of you, so you can and should tend towards ‘aggressive’ asset allocations. Why? You’re young enough to weather downturns in share markets and therefore benefit from long term gains.
-          Aged 35 to 45: you should be paying down a mortgage fast, taking advantage of low interest rates to increase home equity and get ahead of the payment schedule (home owners need less cash in retirement than renters or those with a mortgage). You should be paying more attention to your superannuation and although you’re no longer in your twenties, you should keep your investments in ‘growth’ and weighted to equities.
-          Aged 45 to 55: you should be making additional contributions to your nest egg, taking advantage of tax benefits for salary sacrificing to super. Make eliminating all debt a priority, you don’t want to carry it into retirement. If you haven’t already, meet with a financial planner to begin discussing retirement options
-          Aged 55 to 65: you should shift the majority of your investment to preservation assets – cash, fixed income – and use your last working years to increase personal contributions to super. Consider a strategy for “transition to retirement” which includes a capital preservation strategy rather than chasing growth. Focus on making the right tax decisions and decide which lifetime annuity product suits you best.
Of course, life stages are not definitive on their own. But alongside your risk profile, your goals and your savings strategy, they become useful ways of ensuring your actual life is catered for and you’re always on the right track.
Include yourself in the picture, and good luck.
</body></html>

Choosing the right risk profile for different stages of your life: Mark Bouris

<html><body>
Twenty years ago, a financial term such as ‘asset allocation’ would have been reserved for fund mangers and analysts.
But with the advent of compulsory superannuation in Australia, we have all become investors now. Even members of retail and industry super funds have to at least understand the concept of asset allocation and to make good decisions about how their retirement savings are invested.
Asset allocation is about putting the right amount of your investments to cash, bonds (fixed interest), shares and property. The idea is that when some of the asset classes are doing poorly, at least one of the classes is doing well. It’s a balancing act.
But how do you make sure you have the right asset allocation for you? The answer isn’t easy, because every person has different needs.
The two main determinants of asset allocation are your risk profile and your life stage.
Let’s start with risk profile.
Risk profile refers to the amount of risk and volatility you accept. Most people know if they are prepared to accept ups and downs in the equities markets to achieve higher returns in the long haul, or if they are prepared to accept low returns of cash and bonds for very little volatility and a high degree of certainty.
Matching an asset allocation to your risk profile is important, especially for long term investors who want to be really comfortable with how their investments are performing. The five profiles, in order by increasing risk, are: preservation, moderate, balanced, growth and aggressive. This is how fund management professionals typically match those risk profiles to asset weightings:
Preservation: 40% cash, 60% fixed interest and no allocation to other classes.
This is for investors who don’t want any volatility in returns; they want to preserve their capital and have returns slightly in front of inflation.
Moderate: 30% cash, 35% fixed interest, 15% Australian shares, 10% international shares, 10% listed property.
The emphasis on cash and fixed interest keeps this portfolio at the non-volatile end of the spectrum but also retains some growth assets to stay further above inflation.
Balanced: 15% cash, 20% fixed interest, 35% Australian shares, 20% international shares, 10% listed property.
Balanced is for people with an appetite for growth but conservative instincts. It seeks to anchor the portfolio in inflation-beating investments but gives almost two-thirds of the portfolio for potential growth.
Growth: 10% cash, 15% fixed interest, 40% Australian shares, 25% international shares, 10% listed property.
This is for people chasing growth with the chance of volatility. Only a token anchor in conservative investments.
Aggressive: 5% cash, 5% fixed interest, 45% Australian shares, 35% international shares, 10% listed property.
This allocation is for an investor who is willing to let their investments ride with the markets and is prepared to accept the volatility of that decision in order to make the greatest gains (which equities offer).
As you can see, there’s an asset allocation for everyone. Your job is to find the right one for you. And that will involve the further complicating matter of life stage.
For those unsure about this, the first step could be an adviser.
</body></html>

Determining your investment risk preparedness is important: Mark Bouris

<html><body>
The role of human sentiment in the economy is important – it creates market momentum, but the sentiment itself doesn’t always stick to the data.
In 2011 and 2012, consumer confidence was low and in most cities house prices dropped. But our unemployment was the envy of the developed world, interest rates were falling, inflation was tame and exports were booming.
The data said ‘boom’ but Australians didn’t have the confidence to buy houses.
In the most recent surveys, we’re again seeing a mismatch of sentiment and data.
Take house prices. In the June RP Data-Rismark Home Value Index, the average capital city house price rose a healthy 1.9% in the month, and recorded a financial year rise in house prices of 3.8% across the eight capital cities.
It’s not a boom, but the trend shows confidence.
In the NAB Monthly Business Survey, confidence among business owners actually rose in June so there are now as many optimists as there are pessimists.
However, while consumer and business owner confidence was fairly good in June, the business data in the survey was terrible.
In terms of forward orders, prices and unused capacity, Australian businesses went backwards in June. Business conditions were at their lowest since May 2009 and the sectors hurting the most were retail, mining and manufacturing.
In other words, sentiment was picking up while the economic data started going backwards, just as in 2011-12 sentiment was low during solid economic data.
What are households and business owners supposed to do with this clash of information?
My advice is to always control the controllable things and stay informed about the big picture, rather than be overwhelmed by it.
For instance, if you own a manufacturing business and the news is all about how energy prices and the collapsing mining boom is hurting your industry, there is not much you can do about it.
But you can cut costs in your business and use historically low interest rates to finance new technology, fund an expansion or refinance expensive debt.
In your household you may be reading about a coming period of economic pain and the recent rise in unemployment.
You can’t alter the information but you can put some savings aside, ensure security for your job and pay down debt. Work with what you’ve got, and that includes some very low fixed mortgage rates.
There’s also your attitude, which is another thing you can control: beware of the exuberance of optimism and the panic of fear. Both will lure you into bad decisions, and bad decisions will bring you undone faster than any economic data.
As I write this, the International Monetary Fund has downgraded global economic growth. At the same time, Wall Street booms: the Dow Jones Industrial Average is currently 1,000 points higher than it was at the height of the boom in 2007.
So, does human confidence hang-on in spite of economic predictions? I would love to know what you think.
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.
</body></html>

It’s not a property boom, but the trend reflects confidence: Mark Bouris

<html><body>
One of The Beatles, John Lennon, reckoned that life was what happened when we’re busy making other plans.
But sometimes it’s living that puts major plans on the backburner.
Take retirement saving. Most people understand that they’ll need to replace around 70% of their average earnings in retirement. An average couple needs in the order of $1 million to live comfortably for more than twenty years of not working.
Given the size of this goal, you’d expect a certain focus on retirement savings among working people.
But in a survey we did at Yellow Brick Road during June, we found that saving for retirement ranked 12th in priorities out of 16 financial issues.
The most important issue for our sample of 25-49 year olds was general cost of living, followed (in order) by utility bills, mortgage repayments, credit cards and the cost of raising children.
Other issues greater than saving for retirement were medical bills, saving for a holiday, personal loans, rent/board, vehicle finance, insurance costs and paying for renovations. Retirement ranked higher than saving for a wedding.
So, retirement savings isn’t really ignored, it’s just that ‘life’ gets in the way.
However, most Australians can help their retirement planning without having to find extra money.
If you’re employed, your employer must put aside 9.25% of your wages into a superannuation fund. So you’re already saving. But it’s what you do with this superannuation that makes the difference.
<ul>
<li>Start by focusing. Tell yourself: “it’s my money.”</li>
<li>Secondly, ensure your fund is not charging too much in fees. You shouldn’t pay more than 1% per annum to have your savings managed (yet many do). The difference between 1% and 2% of a $100,000 nest egg is $1000. This is money you should keep in your own savings where it can compound.</li>
<li>Thirdly, avoid trading-off potential returns in order to have ‘risk free’ savings. The difference between a ‘conservative’ option in a super fund and a ‘growth’ option can be the difference between earning 4 per cent and 9%. On a $100,000 nest egg, that’s a difference of $5000 each year. Young people especially should not be too conservative in their investment choices.</li>
<li>At the same time, avoid chasing the fund with last year’s hottest performance. You’ll find the best performing funds by looking at how they measure over a three- or five-year period.</li>
<li>Finally, save money with lower pricing on life insurances through your super fund. If you can save $500 a year in life insurance premiums, that’s more money in your retirement savings.</li>
</ul>
As with all important investments, there are no magic solutions with superannuation. The point I make is that your goals come closer to reality when you start to focus and to pay attention. Not everyone can throw more money into their super when life is getting in the way. But anyone can take an interest, compare funds and make good decisions.
Good luck.
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.
</body></html>

Five ways to improve your retirement savings: Mark Bouris

<html><body>
The biggest financial news for most Australians in the past two years has been the falling cash rate and decreasing mortgage rates.
They’ve come down so far that you can get a variable rate mortgage in the low 5% range and some lenders have 2 or 3-year fixed rate mortgages as low as 4.99%.
But it’s been more complex for small and medium sized enterprises (SMEs). The Reserve Bank, in a recent report, said fees paid in household lending fell in 2012 to $4.1 billion, while bank fees in business lending rose 7% to $7.3 billion.
In another survey, banking analysts East &amp; Partners found that 43% of the SMEs surveyed experienced rate rises on their secured loans in the last six months. Just 0.8% had a rate reduction and 56.1% had no change in their rates. The average rate rise was 5.3%.
I support the workings of a free market, but we should be concerned when official interest rates drop to historic lows while businesses have rate rises.
It’s easy to make this a fight between big corporations and small business, or between big banks and the ‘mums and dads’.
But the problem could go deeper. Australia has so many small and medium sized enterprises (SMEs) – 99.7% of all businesses – that making them pay more for debt than other borrowers will eventually hit the general economy.
If a business pays more for secured debt than the going rate, one response is to raise prices to cover costs. If this reaction gains momentum among businesses, inflation rises.
A business may not be able to raise its prices but it can cut overheads such as reducing employees or cutting back hours and overtime. Given that small and medium sized businesses employ 70% of the private sector work force, this affects employment.
Also, small businesses constrained by the cost of debt find it harder to grow, and then we lose a vital offset to the oligopoly power of corporations – an offset that we all profit from in consumer choice, service and prices.
Here’s another problem: when a small business has cut as much fat as it can in the enterprise, then the owners tighten their belts in the family home. It’s a double effect because they don’t just contract as producers – they contract as consumers.
The worrying aspect of this is that while slightly more than half of the East &amp; Partners respondents said their rates hadn’t moved for six months, the RBA has tracked rising bank fees for business lending. Which means net increases for business owners.
Overriding this issue is the traditional reluctance of SME owners to change banks.
So, are businesses being squeezed by their banks with nowhere else to go? Or, is this a time to attend to the basics of business performance and seek out truly competitive lenders?
Which way will Australian business go?
I would love to know what you think. Talk to me on Twitter.
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.
</body></html>

Residential interest rates are very attractive but business lending is more challenging: Mark Bouris

<html><body>
When official interest rates move, mortgage borrowers have decisions to make.
Broadly speaking, you can stick with a variable rate loan which means paying the best market rate in any given month. Or, you can take a fixed rate mortgage where you lock in a rate for a set number of years.
Neither approach is risk-free. If you fix for three years you risk that during that time the variable rate will become cheaper, and you’ll be paying too much on your loan.
The reverse is that you have a variable rate loan during a time when the Reserve Bank puts up the cash rate, and your mortgage goes up too.
So what should borrowers be doing now?
You should think about two perspectives: interest rates and products.
Firstly, form a view on where interest rates are going.
We can gain insight into this by looking at what the professionals think: the ones to watch are the Reserve Bank of Australia and the banks’ swap rate markets.
The Reserve Bank has been cutting the cash rate since November 2011, and it is now at the historically low 2.75%. Will they cut further?
They’re giving themselves the permission to cut again. The latest decision in June included the statement that current inflation ‘might provide some scope for further easing’.
You have to balance that against the fixed rate market. Several lenders currently have 4.99% fixed loans for three years, which is a good deal compared to the best variable loans which are around 5.3%.
The markets that underpin fixed rate mortgages are the ‘swap rates’ – in the past three weeks they slid from around 3.2% to 2.9%, which indicates banks believe the price of money is dropping.
The job for anyone who wants to fix is to look at the RBA and the swap rates and make a determination as to how low the price of money goes and for how long.
You should also look at products. While variable rate mortgages are fairly simple market-linked loans, fixed rate mortgages have potential pitfalls.
If you take a fixed rate at 4.99%, you want to get further ahead than if you took a variable rate. So you want the lender to allow lump sums on the loan so you can pay it out fast. Many fixed rate loans only allow a fixed payment.
Secondly, watch for break fees on fixed loans. If you sell your home during your three-year term and pay out the mortgage, some loans require you to make good on the income the banks otherwise would have earned.
The third point is to know yourself. Some want the certainty of fixing at a low rate while others want the best market rate in any given month. It’s a personality thing and you should understand where you’re comfortable.
As always, be aware of the forces that work on your finances and be informed. If you’re confused, ask an adviser.
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.
</body></html>

Weighing up fixed vs variable interest rates: Mark Bouris

<html><body>
I’ve been interested in the commentary about the Aussie dollar’s loss of value against the US dollar.
At the start of May, one Australian dollar could buy $1.05 American; this week it was down to buying US.93¢.
The portents have all seemed grim, but what does the Australian dollar actually mean?
For a starters, the relative value of our currency is not always a bellwether on how we are doing as a nation.
In June 1998, Australia’s economy was growing at 3.9% and John Howard called us the 'strongman' of Asia, yet the Aussie dollar could only buy US.58¢.
In mid-June 2006, the Aussie dollar traded at US.73¢ during a time when the government had surpluses, unemployment was low and we had an equities boom.
What lifted the value of Australian dollar above US$1.00 from late 2010 to May of this year was our trade performance relative to the US economy: resources were being exported in large quantities and at high prices at a time when the US economy was flat.
For most readers this phase meant significant purchasing power when traveling overseas and very good terms from online American retailers.
But life isn’t all about cheap holidays and cut-price Nikons. Our manufacturing sector suffered under a high dollar because it was cheaper for Australians to source goods overseas, while local companies found it hard to export because the exchange rate favourable to Australia made the goods expensive for the importing nations.
Over the past two years we saw a ‘two speed’ economy, where resource exporters could thrive regardless of the high Aussie dollar because what they were exporting was in high demand, while local manufacturers went backwards.
Our domestic energy consumption has flattened due in part to manufacturers operating at under-capacity or going out of business during this phase.
Now that the Aussie dollar is buying less than one American dollar perhaps we should remind ourselves why it is not so bad for our local manufacturing, hospitality and tourism.
With a weakening dollar, Australia looks like a reasonably-priced destination for international tourists and a place where Aussies will holiday rather than going overseas. This also gives the tourism ancillaries – cafes, pubs, restaurants and accommodation – a boost.
These industries are not to be trifled with: the services economy is larger than mining, contributing to around 70% of our GDP and about 75% of employment.
And with the Aussie dollar not so high, Australian manufacturers – many of whom operate at a quality and price premium compared to Asian competition – can find opportunities again where the high dollar is not a hindrance.
There is an argument that the resources boom was actually a market distortion, and that a strong dollar and repressed manufacturing was the price to pay.
Now that the resources boom is passing, perhaps the accompanying lower Aussie dollar is better for a much larger slice of the economy than the high dollar was aiding.
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.
</body></html>

A lower Aussie dollar isn't all bad news: Mark Bouris

<html><body>
I’m often asked about property: when to buy to buy, when to sell, what’s happening to the market, have we reached bottom yet?
The latest RP Data-Rismark Home Value Index reflects a mixed bag, showing capital city house prices fell by 1.2% in May – disappointing given the Reserve Bank’s rate reduction to the historically low 2.75% at the start of May.
Still, while monthly stats are informative, most of us need more perspective.
The May figures must be put beside the year-on-year house price index, which shows house prices rising in capital cities by 2.9% between May 2012 and May 2013.
A city-specific look illustrates this further. While Sydney saw a drop in house prices of 1.0% in May, it also experienced a rise of 3.9% over the previous year. Melbourne recorded a decline of 2.1% in May but saw a rise in house prices of 2.1% over the year.
Close followers of house prices are often investors who look for total return on their properties, which combines rental yield and capital appreciation. This can be a good test of overall property health.
RP Data has Sydney’s ‘total gross return’ on property at a solid 8.5%, and Melbourne at a respectable 6.0%.
These are not as high as most investors want (or as high as Perth 11.3%, Darwin 11.2% and Canberra 7.8%), but they are not low enough to dump property and move into stocks and bonds.
We also have to put house prices alongside the Bureau of Statistics’ housing approval numbers. April housing approvals were very small (0.4% growth) but the year to April saw 6.3% growth.
So, the picture for property – while divided by geography and seeming to be going backwards – is actually showing a slow recovery.
Moreover, I always urge people interested in property to take this market in five- to 10-year windows.
Take a look at RP Data’s longer series: the median dwelling price in the three months to May 2013 was $491,000.
If you compared this to the median price in 2010 - $507,446 – you’d think you’d gone backwards. But compare the current median price to May 2008 when it was $446,488. That’s a rise of $44,512, or just under 10% growth in five years – five years of global turmoil and financial crisis.
Property, in the end, is a medium/long term asset: one step back can be countered by three steps forward. But you have to be patient and strategic: your investment needs time. It can’t reach the peaks if you sell in the troughs.
So I suggest people act upon what’s under their control rather than becoming unnerved by property headlines.
This means looking at what affects you, and acting on what you can act upon. With the lowest interest rates I’ve ever seen, with unemployment low, and property prices recovering, this is a good time for smart buying.
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.
</body></html>

When is the best time to buy property? 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>

&nbsp;

&nbsp;

&nbsp;

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" />

&nbsp;

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News