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A business owner’s failure to separate his or herself from the business entity is one of the biggest problems I see in small and medium-sized enterprises.
Total absorption in your business may feel necessary at times, but living like this affects financial performance as much as mental health.
Business owners are at their most efficient when they create and maintain a sort of critical distance from their business. Here are a few tips on how to do this:
Goals: When starting or buying a business, write down why you are doing it, what you want to get out of it and what will define “success”. You have to know the goal.
Structure: Separating the person from the business starts with structuring. Are you a company, a sole trader, a partnership, a trust? You should engage a solicitor and accountant before starting a business, and have the ramifications spelled out to you in terms of tax, equity, liability law, business sale, superannuation and a host of compliance issues.
Exit: Smart business owners don’t “love” their enterprises too much; they grow them like crops and ensure capital gain when they sell. This requires a clear division in your mind between yourself and your business. It also requires you have a system.
System: The separation of business and business owner often comes down to the creation of a system for creating revenues as opposed to simply having a hard-working owner at the helm. This not only makes your business more valuable to buyers and more reliable in the eyes of the banks, but it helps you become a more successful business owner. With systemised management structure, financial reporting, sales functions and client contracts, etc, you have the opportunity to work on the business rather than simply in it.
Liability: Separating yourself from the business requires correct structuring, so that the legal/financial liabilities of the business are not sitting on the shoulders of you and your family.
Protection: You need the right insurances not only for the business, but for you. You need insurance cover for your family, and also for your business: if you have staff, some sort of key person/business continuance cover is essential to ensure they are looked after. And if you have a family company and you’re the major shareholder, what is your continuance strategy and is it in your will?
Experts: The best way to ensure personal/business separation is to engage the right experts at the right time. External professionals focus on the issue and they chase results, which gives you – the owner – the chance to see the business through clear eyes, untainted by history, personalities or emotions.
What’s in it for me? You’re the one who works like a maniac, who loses your weekends and goes over the spreadsheets late into the night. You must have your reward. Whether you structure this as a salary, bonus or a dividend, you must be rewarded by the business. Your business doesn’t own you – you own the business.
Mark Bouris is executive chairman of <a target="_blank" 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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How (and why) entrepreneurs can separate themselves from their businesses

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Through most of 2011 and the beginning of this year, the Australian economy has been hobbled by sentiment. Sentiment is so important for key measurements such as growth and employment. But sentiment is very hard to measure or put a value on.
In my business, we get a good feel for sentiment because the people we deal with are usually making serious decisions and they talk about why they are making them. And the feeling over the past 18 months has been marked by uncertainty, caution and a reluctance to commit.
When you’re running a household or a business and you have to juggle rising costs of living with employment concerns, new taxes and constant reports of a European crisis, it’s understandable that people have lost their confidence.
The Westpac-Melbourne Institute Index of Consumer Sentiment has been running very low this year. The June Index showed Australians were 1.7% less confident last month than they were in October 2011, despite interest rate cuts since then totalling 125 basis points.
So it was with a glimmer of optimism that I saw two signs this week of perhaps a small turnaround in sentiment.
Firstly, we saw positive house value data creeping back into the numbers. Home values rebounded one percent in June, according to RP Data-Rismark. Sydney, Melbourne and Brisbane each rose 1%; Perth and Canberra boasted a 2% increase. Hobart reported the biggest rise for June at 2.7%.
It was a welcome mini-comeback for house values after the all-capital cities index fell -1.4% in May.
It suggests that the two interest rate cuts from the RBA in May and June have at least given some impetus to the genuine buyers who have been holding off.
The second sign I saw this week was from the Australian Bureau of Statistics’ building approvals for May 2012.
It showed a rebound in apartment building approvals, up 45% on approvals in May 2011. The downside was that approvals for houses had gone backwards by 7.7%.
So the fact that the RBA held the cash rate at 3.5% last week, along with the small bounce in some housing numbers, creates a sense that we might be at the bottom of this real estate market. With rates on hold after two cuts, and house values improving slightly, we could be a good time to buy.
It’s also a good time to refinance: since 1990 the official interest rate has only been lower than 3.5% between February and October 2009. So whatever is happening in China or Europe, this is a low-interest rate era of history. This is good for buyers and good for mortgage holders.
There is nothing wrong with waiting for the bottom of the market and low interest rates. But it isn’t caution I worry about – it’s inaction caused by fear.
A comeback in sentiment will start when enough people see a depressed real estate market as a good time to buy, rather than evidence of doom.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. 
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This could be the bottom of the real estate market and a good time to buy property

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These last few years have been confusing for Australians thinking about retirement: when they look at what the experts have done with their money, they see it going backwards, or growing very slowly.
The 2010-11 APRA figures over the decade to June 2011 show that the average return in large super funds was 3.8%per year. That was the overall average: retail funds earned just 2.9%. After accounting for inflation, which has averaged about 3% over the same period, savers have received little-to-no “real” return.
One of the standard “expert” remarks about investing is that you have to skew your super to higher-returning equities, or you won’t have enough to retire on. But global shares suffered 40-50% losses in 1987, 2001, and again in 2007-08.
The other extreme is to ask you to accept very low returns on your money for little or no risk.
I believe in a “middle way” solution: a portfolio comprising a mix of short-term bank accounts and term deposits combined with variable rate bonds.
By diversifying your portfolio across these investments, the risk you are taking is not much higher than cash and much lower than equities – while receiving very attractive returns.
Many big fund managers and most financial planners do not steer their clients into these products. While many offer bond-based products, when you select the ‘default’ setting in your super fund, you are normally placed in a “balanced fund”, which typically gives you a total exposure to cash and bonds of not much more than 10%.
In other words, the super option most Australians are in – “balanced” – will have you about 80% to 90% exposed to Australian shares, global shares, and “equity” risk in commercial property, private companies, and hedge funds.
Recently, one of our branch principals at Yellow Brick Road dealt with a retiree in Queensland with $800,000 in a bank account, earning less than 2% per annum. By putting his cash into a portfolio that exposed him to both institutional bank accounts and variable-rate Australian bank bonds, this retiree will now earn an extra $25,000 per annum.
Another case is a Sydney family who sold an investment property and needed to park $705,000 before they bought another home in six to 12 months’ time. This family was going to put the money in a bank’s “bonus” savings account paying 5.2% for a few months, which then dropped to a very low 3.5%.
Instead, they will now likely earn an extra $9,000 per annum by investing in a diversified portfolio of bank deposits and bonds.
The point I try to get across to those who are worried about retirement – or who are unhappily retired – is that they have to get their minds out of the approach of 100% or 100% bank accounts.
There are smarter solutions out there for you. Start by becoming informed, and always get advice before you act.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. 
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A smart savings portfolio comprises property, bonds, bank accounts and term deposits

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The end of financial year isn’t only about tax. It’s an opportunity to look at your business and make changes. Here’s my eight-part template for fine-tuning a business.
Goals: along with the financial targets – earnings, margins, market share, etc. – are goals such as how to set goals for your employees and how to define what success is within your business. And never forget about the owner’s goals: you have to know what kind of income and fulfilment you desire.
Knowledge: how good are your systems? Do they give you clear and regular reporting? Do they give you measurements against your key performance indicators? Do you use all of your enterprise system’s capability? Do you need a new system, or do you simply need to know more about the system you currently run?
Funding: it’s time to assess your debt, retained earnings and equity. Whether it’s equity or debt, capital comes at a cost, and you should look at how it’s performing and what needs to change in budgeting, dividends and cashflow discipline.
Protection: business owners often overlook basics such as insurances, disaster recovery plans and contingencies for business continuance. If you employ people, they and their families are vulnerable should anything happen to the business or to you. Your family may also rely on you. Have a plan, talk to experts.
Environment: What broader environment is the business is operating in? What is the Reserve Bank saying? Where are interest rates heading? What is happening to your competitors? Is the government talking about your industry? What foreign forces will affect your business? Every owner can start a new financial year with a brief written outline of where his or her business sits in the economy.
Structure: business owners can go for years with a structure that is wrong for the business, inefficient for tax or inflexible in terms of succession. It’s worth having an accountant or solicitor look at your structure. The law provides you with options in how you carry on a business, and you should ensure you are in the structure that best suits you and your plans.
Growth: what did you do in 2011/12 to grow the business? Did it work? This is the time to look at growth strategies. Get your people in one room and listen to ideas – often the best ideas come from the people who are never asked.
Owner: in the end, there has to be a pay-off for the owner. You need an insurance broker to ensure you have products that cover you as a director, you need advice on separate business/personal finances and you should be converting your hard work into a retirement plan with some of the superannuation exemptions and concessions available to business owners, including CGT relief and self-managed super.
A lot of these matters are overlooked in the course of doing business. Use the end of financial year to at least give them some thought.
Mark Bouris is executive chairman of <a target="_blank" 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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An eight-step guide to fine-tuning a business

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The government ensures that employers put 9% of your earnings into a qualifying superannuation fund.
But then what? Most Australians have no idea how the financial markets operate. This has been made more difficult by the global financial crisis, and in the past few years Australians in typical superannuation funds have gone backwards.
One problem I see is that most Australians select the “default” option in their industry fund, which means a member’s money is put into a ‘balanced’ fund. Balanced might suggest your fund is split into quarters of fixed interest, property, cash and equities.
But look at an Australian “balanced” fund at a big fund manager and you’ll find they have around 60% in equities, 15% in property, 10-13% in cash and 10-13% in fixed interest (government and corporate bonds).
When you have 60% of your retirement savings in equities – half of which is volatile global shares – then you’re unwittingly on a roller coaster.
Fund managers are fond of telling us that after every financial crisis, the Dow Jones Industrial Average rises again, to new heights.
However, when it comes to the GFC, the finance world might be reordering itself permanently into a more conservative outlook, and retirement plans based on annual returns of 10% are unrealistic.
Secondly, the theory of the unbeatable Dow doesn’t take account of timing. Retirees don’t get to hang on in the volatile share markets until their shares regain lost ground. They need funds to live on.
So a balanced fund should be more weighted to fixed-interest investments – at the expense of equities – because the bond markets are more stable than the equities markets and they spin off regular interest payments. Since 1980 Australian government bonds have made the same returns to investors as Aussie shares, but with nowhere near the volatility. Corporate bonds have returned more than Aussie shares.
Just so no one thinks I’m alone on this, remember that David Murray (chair of the Future Fund), Ken Henry (former treasury secretary), ASIC chair Greg Medcraft and former minister of finance Lindsay Tanner have all wondered at Australian fund managers’ lack of interest in fixed interest.
So what do you do?
My first recommendation would be to see a financial adviser and ask about fixed-interest investments. Secondly, approach your fund manager and inquire about a better risk-return equation. He or she might have a better fund for you, with a stronger weighting to fixed interest.
Thirdly, have you thought about your own self managed super fund (SMSF). You probably need $200,000 in super to make it worth it, and you need the right accountants and solicitors.
But an SMSF allows you to invest where you want, which means you select your own risk-return formula.
Whichever way you chose to take control, remember: it’s your super – it’s your retirement.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a target="_blank" href="https://twitter.com/#!/markbouris">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
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Equities are more volatile than property or fixed-interest assets in super funds

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Lower costs for mortgages, car finance and credit cards suit households, but business owners might see it differently. Sure, a lower cash rate means a lower cost of capital. But a rate reduction means the RBA is forecasting some hits to the Australian economy and is reducing the cost of money so that the economy will keep breathing when these threats materialise.
From a business owner’s viewpoint a weakening economy translates to fewer orders, less work, lower revenues and reduced business activity. A reduction in interest rates means a slowing economy.
This puts our business community in a nervous state, which is no good. I would make two points about the current situation. Firstly, while the RBA’s rate reductions of 0.75 percentage points in two months means there’s a potential slowdown on the way, the Aussie economy is actually very strong.
We have low unemployment by the standards of developed economies, our currency is strong, we have very low government debt as a percentage of GDP, and our biggest trade partners are developing nations, whose economies are forecast to grow rapidly.
Perhaps our greatest strength and weakness is our cash rate. At 3.5%, it is significantly higher than comparable economies such as Canada, US, eurozone and Japan, which have cash rates ranging from 1% to effectively zero.
Australian business owners face higher capital costs than their global counterparts. However, the strength of this higher interest rate policy is that the central bank in Australia has the room to stimulate the economy by monetary policy rather than by inflationary fiscal stimulus.
The central banks in other developed economies have already reduced their official rates to rock bottom – their only economic stimulus option is now fiscal, and some of them are simply printing money to achieve this.
The second point is that the RBA can force interest rates to go as low as it requires.
The major banks’ variable interest rates were in lock-step with the RBA during the Howard and Rudd governments, but this no longer occurs. This creates volatility, which feeds into one of the most important factors influencing business owners: sentiment.
Sentiment can turn an economy for better or worse, and business owners generally have stronger sentiment when they feel the certainty to make informed decisions. This is particularly the case when it comes to borrowing to expand, the lifeblood of economic growth.
Even when official interest rates were rising through 2010 and 2011, business owners could make a decision about capital costs based on the Reserve Bank.
It worries me that Aussie business owners will hesitate because they don’t know what official interest rates mean to banks’ rates.
Perhaps the Reserve could look at changes of 0.3 or 0.4 percentage piont, in order to shift variable rates to where they have to be?
With 2.7 million business owners in this country, the last thing we should be doing is confusing them about the cost of money.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a target="_blank" href="https://twitter.com/#!/markbouris">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
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Falling interest rates helps households but hurts business

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Last week I hosted a business seminar that allowed me to speak to people on Main Street and see the current environment through their eyes. There is understandably quite a bit of confusion and hesitation among business owners looking to grow and manage their businesses effectively, so I thought I’d go back to basics and talk a bit about strategies and setting up for success.
Firstly, have a plan: A plan can change and it can be improved as you move forward, but without it you really don’t have a sense of where you’re trying to go. You need a plan.
A plan should start with your goals. This should include a clear sense of what you want from your business – financially, professionally and personally. I have known people who have focused on simply one of these, and they’ve become demotivated. You must define how much money you want to earn from this enterprise; you must have a clear goal about what kind of professional glory you are pursuing; and you should define personal happiness before starting a business.
A plan must also include marketing plans, key employees, financial and corporate structures, protections such as insurances and a really good system that tells you if you’re succeeding.
This last one is something that many first-time business owners ignore. However, adopting key performance indicators and judging your business against them is crucial. It’s the method by which you judge whether the plan is working.
Your plan should also delineate shareholders, investors, partners and the exit strategy.
I advise business owners to think carefully about whom they take on as a partner or investor – the right partner can be the best thing you ever did because that person can be a mentor, a war buddy and someone to share the pain and the wealth with. You want a good partner, but you want to be a good partner, too. The same goes for investors – the best one may not be the one with the most money, but the best contacts and the most experience.
And then there’s exit strategy. Anyone who’s already owned a business will tell you that it’s worth thinking about your exit before you start a business. Many business ventures end in organised liquidation, trade sale or internal buy-out. And how that works is dependent on the structure and decisions about shareholding and rights, etc.
It’s worth discussing this with your accountant or solicitor before starting a business. And I always advise business owners to state in their plan what value they want to build the business to. That is to say, if a large business were to bid to buy your business, what price would you want and what kind of sale would you want?
Once you start planning for these goals, you realise that you have to make certain structural decisions before you start the business.
So I think very highly of planning. I’ve started, invested in and sold many businesses and I’ll do it all again in the future. And I don’t take any serious steps until I have a plan – a road map for success.
Lastly, let me give you a good template for a business owner’s personality: work, play, fight, love, believe.
You must want to work, you must plan for downtime away from work, you must be prepared to fight for what’s right and for your business, you must have a love or a passion for what you’re doing, and you must arise each morning with a ton of belief in what you’re doing and where you’re going.
Good luck!
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a target="_blank" href="https://twitter.com/#!/markbouris">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
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To build a successful business, know your goals and your exit strategy

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Don’t you get sick of hearing about the importance of the resources sector?
I’m looking at a different kind of gold mine: the thousands of Australians with a good idea and the desire to start a new enterprise. These are people who will put it all on the line to pursue something new and innovative, yet most of them can’t get the support they need in this country.
The excellent story by Asher Moses in the Sydney Morning Herald a little over a week ago that highlighted the number of young Australians taking their ideas to Silicon Valley because they can’t get a start here really annoyed me.
Why? Because the real “resources” sector in this country is our people. The minds of our young people is where the national wealth and economic growth of the next 50 years is going to come from.
Yes, the current minerals boom is putting wealth in our pockets. But when the stuff in the ground dries up, <country-region>Australia</country-region> will need what has always sustained the <country-region><place>US</place></country-region> economy, and that is innovation, patents, high technology, medical advances, miracle drugs, etc.
The real test of an economy that wants entrepreneurs is what they call the “commercialisation” phase.
Commercialisation must support both the entepreneur and the investor. The entrepreneur needs investment and expertise and the investor needs to manage their risk and boost their capital gains.
Entrepreneurs typically get their finance from debt or equity.
But in <country-region><place>Australia</place></country-region>, banks do not like high-risk loans or loans to people lacking in a business track record. And our equity investors typically prefer to invest in entrepreneurs who are in expansion mode rather than start-up because our tax laws do not make the risk of the start-up worth the reward.
Corporations may be interested in an innovation, but they shy from equity investment because of corporate governance issues.
This leaves the role of government which should be allowing the right taxation, banking and regulatory environment for entrepreneurs and their investors. We have to allow talented entrepreneurs to find the money, not to have governments create cash bonanzas so long as you invent what they want.
The Commonwealth Treasury, in its research paper Measuring Entrepreneurship, found that the European government emphasis on investing in R&amp;D at universities and corporations during the 1980s and 1990s had not resulted in the expected increase in economic growth. The “critical link” between R&amp;D and economic growth was entrepreneurship.
We have the talent in this country, and a new generation is finding ways to make their dreams a reality. But they need the education and the opportunity – they need advice. I’m hosting a business seminar this week, and I’ve been inundated with questions from smart young business minds who are looking for answers. So I am going to help.
<country-region><place>Australia</place></country-region> is turning out a new breed of entrepreneur that will be the future of this country and we need to do right by them… or lose them.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a target="_blank" href="https://twitter.com/#!/markbouris">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
Mark is hosting the Secrets to Business Success Seminar on Wednesday 30 May in Parramatta. For more information visit <a href="https://www.ybr.com.au/seminar">www.ybr.com.au/seminar</a>
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The real resources sector in Australia is our entrepreneurs: Mark Bouris

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Professional investors understand that you can’t outsmart the market. It’s a lesson worth remembering if you’re looking at refinancing a loan with a fixed-rate loan.
Some borrowers have legtimate reasons to want fixed costs of capital. But there are other types of borrowers who believe that they will gain an advantage by taking a fixed rate loan.
We saw this happen in March when, according to the Australian Bureau of Statistics, the number of fixed-rate mortgages soared to 14.5% of the total mortgage market, the highest ratio since May 2008.
A flat economy (in the southern and eastern states), and a pause on official interest rate movements, pushed many Australians into the “safe” option because banks were offering fixed rates about 0.5 percentage points under their variable rates.
But the large numbers of borrowers refinancing into a fixed-rate loan in March were not to know that the Reserve Bank, on May 1, would cut the cash rate by 0.5 percentage points. They didn’t gain advantage at all.
Mortgage holders are generally best served by the variable-rate system, because you are following the market price of mortgages and you can operate with the same basic information available to everyone.
To find the best deal on a variable-rate loan, go to a comparison web site and look at the “comparison rate” column.
Then, focus on the loan margins. Start with your own variable home loan rate and subtract the cash rate, which you can find at the Reserve Bank’s home page.
So, if your loan is 6.75% and the cash rate is 3.75%, the margin you are paying is 3%.
Now, look at another lender’s variable rate. If they have a loan at 6.25%, then the margin they are charging is only 2.5%.
By thinking in terms of the loan margin, you get a better feel for the market.
The best part about variable rate loans is that while a fixed rate locks you in for a term, variable rate loans are flexible; lenders cannot charge exit fees when a borrower leaves a home loan, so there is no penalty for refinancing.
Refinancing is certainly worth it. Say you have a home loan with a bank and have a current variable interest rate of 6.99% on a $350,000 loan. You look around and decide to refinance to a 5.99% loan.
The savings in that one percentage point would be $59,223 over the life of the loan. If you refinanced and kept your repayments at the same rate as your repayments in the original loan, you’d actually save $129,143.
Some people are not comfortable researching the mortgage market, and for them I recommend expert advice in the form of a mortgage broker.
It doesn’t matter how you come to refinance, the trick is be informed and to be prepared to act. In most cases, the lender you are leaving will try to reduce you interest rate to make you stay.
It’s nice to feel wanted!
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a target="_blank" href="https://twitter.com/#!/markbouris">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
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Refinancing your home loan is usually worth it

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The budget showed that the Labor government intends to win back its traditional voters by pushing money to households through tax cuts and cash bonuses for school children.
But although the budget seemed politically smart, it was built on assumptions rather than certainties.
The primary assumption is that the current government will still be the government in 2013 and beyond. Some of the accounting tricks and new revenue programs used to put the 2012-13 budget in surplus require that the government who put them in place will still have its hands on the levers.
In the current environment, that’s a hopeful assumption.
Secondly, the improved budget position is expected to come about because of cuts to government spending and an increase in tax receipts driven by next year’s expected growth rate of 3.25%.
Strong growth is going to be driven mainly by the mining sector because sectors such as retail, hospitality and manufacturing are not doing well. Yet many factors can arise to change growth forecasts and it will only take one sector of the economy to stumble – mining – and all bets are off.
Thirdly, there’s a raft of carbon tax-related initiatives that have been factored into the budget estimates but the one to watch is the so-called ‘carbon price’ of $29 a tonne.
This represents revenue to the Commonwealth, but the more I read about this carbon price the more it becomes apparent that it is not necessarily the price that will be paid by businesses. In fact, carbon emissions are currently being traded in Europe at below $10 per tonne and the momentum is for even cheaper carbon prices.
So, $29 per tonne actually being levied on Australian emitters is not a given.
Lastly is the Treasurer’s forecast that official interest rates will decrease into 2013. This will apparently stimulate the economy.
Even if the assumption on interest rates is accurate, it’s not entirely consistent with an economy growing at 3.25%.
When the economy grows at 3.25% and household consumption is growing by 3% (as forecast) the Reserve Bank will act to stop inflation. And that will mean interest rates go up.
And we should all be concerned about the 1% reduction in company tax promised to business owners that the government abandoned on budget night.
If you base the coming-right of the economy on strong growth in 2013, then you’d expect Australia’s 2.7 million small business owners, who employ 60% of the workforce, to play some part in that.
I know that the government places their faith in an ongoing resources boom but that still leaves about 85% of the economy who are flat or going backwards.
Many householders will be happy with this budget, but can I suggest that everyone who receives their schoolkids bonus spend it wisely? The world economy is going through a structural change and our best defence – along with surplus budgets – is an educated population.
Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a href="https://twitter.com/#!/markbouris" target="_blank">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
 
 
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Federal budget was politically smart but built on hopeful assumptions

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

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

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

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

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

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

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

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

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

Mark Bouris

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