<p>A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.</p>

<p>Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.</p>

<p>Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374005]</p>

<p>The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.</p>

<p>Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.</p>

<p>Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374010]</p>

<p>Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.</p>

<p>The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.</p>

<p>“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374002]</p>

<p>“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”</p>

<p>The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.</p>

<p>[smartcode_project_cta:default project_id=150999]</p>


Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.</p>

<p data-end="717" data-start="537">The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.</p>

<p data-end="918" data-start="719">The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.</p>

<p data-end="1131" data-start="920">PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.</p>

<p data-end="1131" data-start="920"><img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" /></p>

<p data-end="1318" data-start="1133">Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.</p>

<p data-end="1433" data-start="1320">The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" /></p>

<p data-end="2191" data-start="2013">The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.</p>

<p data-end="2365" data-start="2193">PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”</p>

<p data-end="2943" data-start="2777">The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


PDG secures approval for $1.5bn Southbank apartment development, The One

<p>Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.</p>

<p>The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.</p>

<p>That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.</p>

<p>The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.</p>

<p>A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.</p>

<p>&nbsp;</p>

<p>Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.</p>

<p>Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.</p>

<p>While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;</p>

<p>Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.</p>


First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

<p><strong>IN BRIEF</strong></p>

<ul>
	<li>
	<p>Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.</p>
	</li>
	<li>
	<p>Construction on The Waterline is complete, with the first residents expected to move in from mid-October.</p>
	</li>
	<li>
	<p>Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.</p>
	</li>
</ul>

<hr />
<p>Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.</p>

<p>Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.</p>

<p>[smartcode_project:default project_id=113271 project_image_fid=366708]</p>

<p>Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.</p>

<p>“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.</p>

<p>“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.</p>

<p>“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”</p>

<p>[smartcode_project:default project_id=113271 project_image_fid=366709]</p>

<p>The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.</p>

<p>The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.</p>

<p>Each residence also has three secure basement car spaces and additional storage.</p>

<p>“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.</p>

<p>“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”</p>

<p><img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" /></p>

<p>Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.</p>

<p>Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.</p>

<p>Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.</p>

<p>“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.</p>

<p>“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.</p>

<p>“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”</p>

<p>Sky Homes are priced from $3.65 million.</p>

<p>Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.</p>

<p>Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.</p>

<p>Harbour Shores is being marketed by Colliers International.</p>

<p data-end="555" data-start="341">[smartcode_project_cta:default project_id=113271]</p>


Lewis Land opens sky home display as The Waterline completes at Harbour Shores

<p data-end="387" data-start="97">St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.</p>

<p data-end="697" data-start="389">The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.</p>

<p data-end="925" data-start="699">Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.</p>

<p data-end="1217" data-start="927">It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.</p>

<p data-end="1217" data-start="927"><img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" /></p>

<p data-end="1538" data-start="1219">The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.</p>

<p data-end="1723" data-start="1540">The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.</p>

<p data-end="2063" data-start="1725">The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.</p>

<p data-end="2063" data-start="1725"><img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" /></p>

<p data-end="2205" data-start="2065">Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.</p>

<p data-end="4244" data-start="4087">The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.</p>

<p data-end="4598" data-start="4246">The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.</p>

<p data-end="4798" data-start="4600">Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.</p>

<p data-end="4798" data-start="4600">The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.</p>

<p data-end="5032" data-start="4800"><img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" /></p>

<p data-end="5486" data-start="5211">&nbsp;</p>

<p data-end="2205" data-start="2065">The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.</p>

<p data-end="2375" data-start="2207">Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.</p>

<p data-end="2712" data-start="2377">Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.</p>

<p data-end="2751" data-start="2714"><em><a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a></em></p>

<p data-end="2865" data-start="2753">Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.</p>

<p data-end="3067" data-start="2867">Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.</p>

<p data-end="3379" data-start="3069">Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.</p>

<p data-end="3379" data-start="3069"><a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station"><em>First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</em></a></p>

<p data-end="3883" data-start="3659">&nbsp;</p>


First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.</p>

<p>The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).</p>

<p>Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.</p>

<p>Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.</p>

<p>The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.</p>

<p>There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

<p>While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

<p>The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.</p>

<p>While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.</p>

<p>It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.</em></p>


Every First Home Owner Grant for new property by state

<p>In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.</p>

<h2>What is NatHERS?</h2>

<p>NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.</p>

<h2>How NatHERS Ratings Work</h2>

<p>NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.</p>

<p>The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;</p>

<p>Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.</p>

<p><strong>Cost Savings:</strong> Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.</p>

<p><strong>Environmental Impact:</strong> Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.</p>

<p><strong>Improved Comfort: </strong>Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.</p>

<p><strong>Market Value and Desirability:</strong> Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.</p>

<p><strong>Compliance with Building Codes:</strong> NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.</p>


The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.</p>

<h3>Convenience and accessibility</h3>

<p>Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.</p>

<h3>Vibrant lifestyle and community</h3>

<p>One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.</p>

<h3>Enhanced security and maintenance</h3>

<p>Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.</p>

<h3>Live-work-play balance</h3>

<p>One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.</p>

<p>The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.</p>


alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe></p>

<h2>Who pays Stamp Duty?</h2>

<p>In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.</p>

<p>You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

<p style="line-height:1.38">Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.</p>


Ellen Walker

Off-the-plan property explained: What is stamp duty?

<p>National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.</p>

<p>NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.</p>

<p>Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.</p>

<p>NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.</p>

<p>"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.</p>

<p>They added that the cadence of the cuts may be faster than its central profile.</p>

<p>"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.</p>

<p>NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;</p>

<p>CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.</p>

<h2><strong>What would a rate cut in February look like for borrowers?</strong></h2>

<p>According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;</p>

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			<p><strong>Impact of 0.25% pt cut in February 2025</strong></p>
			</td>
		</tr>
		<tr>
			<td>
			<p><strong>Current loan size</strong></p>
			</td>
			<td>
			<p><strong>Drop in monthly repayment</strong></p>
			</td>
			<td>
			<p><strong>New monthly repayment</strong></p>
			</td>
		</tr>
		<tr>
			<td>
			<p>$600,000</p>
			</td>
			<td>
			<p>-$92</p>
			</td>
			<td>
			<p>$3,907</p>
			</td>
		</tr>
		<tr>
			<td>
			<p>$750,000</p>
			</td>
			<td>
			<p>-$114</p>
			</td>
			<td>
			<p>$4,884</p>
			</td>
		</tr>
		<tr>
			<td>
			<p>$1M</p>
			</td>
			<td>
			<p>-$153</p>
			</td>
			<td>
			<p>$6,512</p>
			</td>
		</tr>
		<tr>
			<td colspan="3">
			<p>Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.</p>
			</td>
		</tr>
	</tbody>
</table>

<p>Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.</p>

<p>“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.</p>

<p>“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."</p>

<p>&nbsp;</p>


Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

<html><body>
<p><span style="line-height: 1.3em;">Mortgage broker John Symond says he is worried that the APRA investor home loan lending crackdown will have unintended consequences given the huge increase in non-Australian residents buying property.</span></p>
<p><span style="line-height: 1.3em;">"I am just worried that there is not going to be unintended consequences here because you might find these foreign investors have even a bigger go because regular Australians are going to find it tougher to get through the hoops to be able to borrow money to buy an investment property, in most cases their future nest egg" </span><span style="line-height: 1.3em;">John Symond, the founder and chairman of Aussie Home Loans said.</span></p>
<p><span style="line-height: 1.3em;">"I lot of these people are bringing money from China,"</span><span style="line-height: 1.3em;"> he told Ross Greenwood on the </span><em style="line-height: 1.3em;">2GB Money News</em><span style="line-height: 1.3em;"> program last night.</span></p>
<p><span style="line-height: 1.3em;"> "Without picking on the Chinese, they have had a huge spike on new housing something like $12 billion in last 12 months - now this doesn't come under APRA as a lot bring money from China. </span></p>
<p><span style="line-height: 1.3em;">"They are certainly help driving the pricing up and driving the shortage of properties available for first home buyers and people looking to buy their home in Australia.</span></p>
<p><span style="line-height: 1.3em;">"It is not just the Chinese there are other foreign investors who love Australia," he said.</span></p>
<p><span style="line-height: 1.3em;">The latest lending </span><span style="line-height: 1.3em;">data</span><span style="line-height: 1.3em;"> suggests lenders are generally meeting the 10% growth restraint sought by APRA, though some still to sufficiently rein in the pace of investor loans.</span></p>
<p>It has been suggested more than 82% of investor lending remains within APRA’s macro prudential growth target (not materially above 10%).</p>
<p>While a number of lenders are comfortably below this range (around 12% of market share) and have scope to increase their exposure to housing investors, some lenders are tracking well above APRA’s macro prudential target growth range. </p>
<p>The 10 per cent benchmark is not a hard limit, but is a key risk indicator for supervisors in the current environment. </p>
<p>The benchmark has been established after advice from members of the Council of Financial Regulators, taking into account a range of factors including income growth and recent market trends.</p>
<p>ADIs with greater than $1 billion of residential term loans held 98.4% of all residential term loans as at 31 March 2015. These ADIs reported 5.3 million loans totalling $1.28 trillion.</p>
<p>Of these loans: the average loan size was approximately $243,000, compared to $235,000 as at 31 March 2014; $479.1 billion (37.4%) were interest-only loans; and $30.1 billion (2.3%) were low-documentation loans.</p>
<p> </p>
</body></html>

jchancellor-FAypfDUnLy

Chinese buyers to benefit from APRA crackdown on local borrowers: John Symond

<html><body>
<p>Non-bank lenders are set to be flooded with interest from investor borrowers as loans from the Big 4 dry up in response to pressure from APRA, the loan comparison website, Mozo forecast. </p>
<p><span style="line-height: 1.3em;">“Non-bank lenders are likely to reap the rewards of investors being turned away by the big banks,” said Mozo home loan expert, Steve Jovcevski. </span></p>
<p><span style="line-height: 1.3em;">“Some investors are having applications rejected, resulting in a flurry of panicked refinancers flooding the market, especially those settling on properties as early as this week.”</span></p>
<p><span style="line-height: 1.3em;">“In particular, those who have bought properties off the plan will get a rude shock when it comes to financing their purchases,” he said.</span></p>
<p><span style="line-height: 1.3em;">"Mozo’s advice for investors is to look beyond the big four to non-bank lenders to secure an investor loan.  </span></p>
<p><span style="line-height: 1.3em;">"Out of 83 lenders on Mozo, 48 are non-bank lenders and not strictly under regulation by APRA," he said. </span></p>
<p><span style="line-height: 1.3em;">The average Big 4 variable rate is 4.69% while the top rate from a non-bank lender is a low 3.98%.</span><span style="line-height: 1.3em;"> </span></p>
<p><strong>Top 5 non-bank loan rates:</strong></p>
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="133">
<p><strong>Lender</strong></p>
</td>
<td valign="top" width="85">
<p><strong>Rate</strong></p>
</td>
<td valign="top" width="99">
<p><strong>Comparison rate</strong></p>
</td>
<td valign="top" width="99">
<p><strong>Max LVR </strong></p>
</td>
</tr>
<tr>
<td valign="top" width="133">
<p>Homestar</p>
</td>
<td valign="top" width="85">
<p>3.98%</p>
</td>
<td valign="top" width="99">
<p>4.01%</p>
</td>
<td valign="top" width="99">
<p>95%</p>
</td>
</tr>
<tr>
<td valign="top" width="133">
<p>Loans.com.au</p>
</td>
<td valign="top" width="85">
<p>3.98%</p>
</td>
<td valign="top" width="99">
<p>4.00%</p>
</td>
<td valign="top" width="99">
<p>90%</p>
</td>
</tr>
<tr>
<td valign="top" width="133">
<p>iMortgage</p>
</td>
<td valign="top" width="85">
<p>4.04%</p>
</td>
<td valign="top" width="99">
<p>4.08%</p>
</td>
<td valign="top" width="99">
<p>90%</p>
</td>
</tr>
<tr>
<td valign="top" width="133">
<p>Newcastle Permanent</p>
</td>
<td valign="top" width="85">
<p>4.09%</p>
</td>
<td valign="top" width="99">
<p>4.45%</p>
</td>
<td valign="top" width="99">
<p>80%</p>
</td>
</tr>
<tr>
<td valign="top" width="133">
<p>State Custodians</p>
</td>
<td valign="top" width="85">
<p>4.09%</p>
</td>
<td valign="top" width="99">
<p>4.42%</p>
</td>
<td valign="top" width="99">
<p>80%</p>
</td>
</tr>
<tr>
<td colspan="4" valign="top" width="417">
<p>Based on a $300k loan amount. Loans available to investors and owner occupiers.</p>
<p align="right"><strong><em>Source: Mozo.com.au as at 22/5/15</em></strong></p>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">“Not being strictly regulated by APRA doesn’t mean it will be a walk in the park, these lenders will still be cautious as a result of the actions of the majors,” said Jovcevski.</span></p>
<p>“If you were looking to buy as an investment, it might mean a trip back to the drawing board to save more.”</p>
<p><span style="line-height: 1.3em;">“Across the board, serviceability measures will be more stringent so it’s even more important to have a solid savings history and a good payment record. Worst case scenario you may need to lower your purchase budget in order to borrow with an 80% LVR,” said Jovcevski. </span></p>
<p><span style="line-height: 1.3em;"><strong>For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the</strong><strong> free <em>Property Observer</em> eBook, <em>Get loan-savvy – tips for a first time, investment or refinancing loan</em>, which helps you decide on a home loan that meets your requirements.</strong></span></p>
</body></html>

Mozo forecast non-bank lenders to reap shocked off the plan borrowers in APRA crackdown

<html><body>
<div>The Bank of Queensland (BoQ) has been ordered to improve its home lending practices after the Australian Securities and Investments Commission (ASIC) found they were not consistent with the National Credit Act.</div>
<div> </div>
<div>ASIC was concerned that BoQ was using a benchmark figure, the Henderson Poverty Index (HPI), to estimate the living expenses of consumers applying for home loans, instead of asking them about their actual expenses, when assessing loan suitability.<br><br>"In ASIC's view, the lack of enquiry about actual expenses, and sole reliance on HPI, was not consistent with responsible lending obligations imposed by the National Credit Act," the regulator said.<br><br>"Bank of Queensland has updated its home loan application forms to obtain more information about a customer's living expenses."</div>
<div> </div>
<div>From this year, the bank has also been using the higher of the customer’s supplied figure or that new benchmark, BoQ’s chief risk officer Peter Deans wrote on the bank’s website.</div>
<div class="article_body">
<p>“We have also been examining customer’s declared expenses more closely to determine the loan repayments they can afford,” he wrote.</p>
<p>ASIC acknowledged the co-operation of Bank of Queensland in resolving this issue.</p>
<p>ASIC notes that the bank will continue to review the circumstances of borrowers who go into hardship or default to ensure that they have not been disadvantaged by a loan provided prior to the change in policy.</p>
<p>ASIC Deputy Chairman Peter Kell said the outcome was part of ASIC’s ongoing focus on the lending industry’s compliance with responsible lending laws. </p>
<p>"Lenders must carry out inquiries to determine whether a credit contract will be unsuitable for a consumer," Peter Kell said.</p>
<p>In November 2014, ASIC updated Regulatory Guide 209 Credit licensing: Responsible lending conduct (RG 209) to clarify that credit licensees cannot rely solely on benchmark living expense figures, and must also make inquiries about the borrowers’ actual living expenses.</p>
<p> </p>
</div>
</body></html>

BoQ told to tighten home lending practices

<html><body><div class="page" title="Page 6">
<div class="layoutArea">
<div class="column">
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">As at 31 March 2015, the total of residential term loans to households held by all authorised lenders was $1.30 trillion, according to the latex March quarter 2015 APRA figures.</span></p>
<p><span>This is an increase of $23.9 billion (1.9%) on 31 December 2014 and an increase of $107.1 billion (9%) on 31 March 2014. </span></p>
<p><span> Owner-occupied loans accounted for 65.4% of residential term loans to households.</span></p>
<p><span>Owner- occupied loans were $852 billion, an increase of $12.7 billion (1.5% on 31 December 2014) and  $57.3 billion (7.2% on 31 March 2014). </span></p>
<p><span>Investment loans accounted for 34.6% of residential term loans. Investment loans were $450.2 billion, an increase of $11.2 billion (2.6%) on 31 December 2014 and $49.8 billion (12.4%) on 31 March 2014. </span></p>
<p><span><img src="/images/2015/05/26/apra1.jpg" alt=""></span></p>
<p><span style="line-height: 1.3em;">The latest lending </span>data<span style="line-height: 1.3em;"> suggests lenders are generally meeting the 10% growth restraint sought by APRA, though some still to sufficiently rein in the pace of investor loans.</span></p>
<p>It has been suggested more than 82% of investor lending remains within APRA’s macro prudential growth target (not materially above 10%).</p>
<p>While a number of lenders are comfortably below this range (around 12% of market share) and have scope to increase their exposure to housing investors, some lenders are tracking well above APRA’s macro prudential target growth range.<span> </span></p>
<p><span><span>The 10 per cent benchmark is not a hard limit, but is a key risk indicator for supervisors in the current environment. </span></span></p>
<p><span><span>The benchmark has been established after advice from members of the Council of Financial Regulators, taking into account a range of factors including income growth and recent market trends.</span></span></p>
<p><span>ADIs with greater than $1 billion of residential term loans held 98.4% of all residential term loans as at 31 March 2015. These ADIs reported 5.3 million loans totalling $1.28 trillion.</span></p>
<p><span>Of these loans: the average loan size was approximately $243,000, compared to $235,000 as at 31 March 2014; $479.1 billion (37.4%) were interest-only loans; and $30.1 billion (2.3%) were low-documentation loans.</span></p>
<p><span>New housing loan approvals with ADIs with greater than $1 billion of residential term loans saw approval of $82.3 billion of new loans in the quarter ending 31 March 2015. This is a decrease of $10.9 billion (11.7%) on the quarter ending 31 December 2014 and an increase of $8.5 billion (11.5% on the quarter ending 31 March 2014.</span></p>
<p><span style="line-height: 1.3em;">Of the new loan approvals $51.9 billion (63.0%) were for owner-occupied loans, a decrease of $6.5 billion (11.2%) from the quarter ending 31 December 2014; $30.4 billion (37.0%) were for investment loans, a decrease of $4.4 billion (12.6% from the quarter ending 31 December 2014; $34.8 billion (42.3%) were interest-only loans; $9.1 billion (11.1% had a loan-to-valuation ratio greater than or equal to 90%; and $0.6 billion (0.7%) were low-documentation loans. </span></p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/05/26/apra2.jpg" alt=""></span></p>
<p> </p>
<p>It was December 9 last year when tt<span style="line-height: 1.3em;">he Australian Prudential Regulation Authority (APRA) wrote to authorised deposit-taking institutions (ADIs) outlining further steps it plans to take to reinforce sound residential mortgage lending practices. </span></p>
<p><span style="line-height: 1.3em;">These steps have been developed following discussions with other members of the Council of Financial Regulators.</span></p>
<p>In the context of historically low interest rates, high levels of household debt, strong competition in the housing market and accelerating credit growth, APRA has indicated it will be further increasing the level of supervisory oversight on mortgage lending in the period ahead.</p>
<p>Las December APRA advised it did not propose to introduce across-the-board increases in capital requirements, or caps on particular types of loans, to address current risks in the housing sector.</p>
<p>However, APRA flagged to ADIs that it will be paying particular attention to specific areas of prudential concern.</p>
<p>These included:</p>
<ul>
<li>higher risk mortgage lending — for example, high loan-to-income loans, high loan-to-valuation (LVR) loans, interest-only loans to owner occupiers, and loans with very long terms;</li>
<li>strong growth in lending to property investors — portfolio growth materially above a threshold of 10 per cent will be an important risk indicator for APRA supervisors in considering the need for further action;</li>
<li>loan affordability tests for new borrowers — in APRA’s view, these should incorporate an interest rate buffer of at least 2 per cent above the loan product rate, and a floor lending rate of at least 7 per cent, when assessing borrowers’ ability to service their loans. Good practice would be to maintain a buffer and floor rate comfortably above these levels.</li>
</ul>
<p>In the first quarter of 2015, APRA supervisors indicated they would be reviewing ADIs’ lending practices and, where an ADI is not maintaining a prudent approach, may institute further supervisory action.</p>
<p>This could include increases in the level of capital that those individual ADIs are required to hold.</p>
<p>APRA Chairman Wayne Byres noted that while in many cases ADIs already operate in line with these expectations, the steps announced last December would "help guard" against a relaxation of lending standards and, where relevant, prompt some ADIs to adopt a more prudent approach in the current environment.</p>
<p>‘This is a measured and targeted response to emerging pressures in the housing market. These steps represent a dialling up in the intensity of APRA’s supervision, proportionate to the current level of risk and targeted at specific higher risk lending practices in individual ADIs’ he said.</p>
<p>‘There are other steps open to APRA, should risks intensify or lending standards weaken and, in conjunction with other members of the Council of Financial Regulators, we will continue to keep these under active review.’</p>
<p>The steps announced today build on the enhanced monitoring and supervisory oversight of residential mortgage lending risks that APRA has put in place over the past year, which has included a major stress test of the banking industry, targeted reviews of ADIs’ residential mortgage lending and the release of detailed guidance to ADIs on sound residential mortgage lending practices.</p>
<p>APRA’s heightened supervisory focus on lending standards is being conducted in conjunction with the review of interest-only lending announced by the Australian Securities and Investments Commission (ASIC).</p>
</div>
</div>
</div></body></html>

Property investor lending running at 12.4% annual growth: APRA

<html><body>
<p>The past few weeks have seen banks tighten up lending conditions for property investors – either charging higher interest rates or imposing lower loan to valuation ratios or both.</p>
<p>This is in response to increasing pressure from the banking regulator APRA (ie the Australian Prudential Regulation Authority) demanding that the 10% cap on property investor lending growth that it announced last December be adhered to. </p>
<p>Those who have been around for a while might wonder what is going on. Isn’t this what used to happen in the dim dark days before the enlightenment of financial regulation in the 1980s. The answer is yes and the term “macro prudential regulation” – in reference to using prudential controls on lending to influence the economic cycle - is just a fancy term for what went on in the past. </p>
<p>So why has it made a comeback? And will it work?</p>
<p>The focus on varying prudential controls to achieve macro-economic outcomes was quite common up until the early 1980s but went the way of the dodo when it was concluded that it was only leading to distortions in the financial system, as people found a way around them.</p>
<p>So while financial system regulators, like APRA, continued to ensure that prudential standards were met, from the mid 1980s varying interest rates to control the housing and economic cycle became the norm. And this worked reasonably well.</p>
<p>The last major boom in Australian property prices ended around 2004. This was a cracker and saw average home prices around Australia rise an average of nearly 15% per annum over the five years to the end of 2003; a massive surge in housing related credit with property lending growing 21% and property investor lending growing 30% in 2003; this in part was fuelled by property spruikers running property investment seminars on a grand scale; and there was little doubt that house price gains were being extrapolated off into the future in investors’ minds and that this in turn was driving more investment.</p>
<p><img src="/images/2015/05/26/oliver1.jpg" alt=""></p>
<p>(<em>Source: CoreLogic RP Data, AMP Capital)</em></p>
<p>The surge into 2003 took the property price to household income ratio from around three times to around five to six times and saw real property prices go from well below trend to well above.</p>
<p>As a result concern about a property bubble and poor housing affordability came to the fore. It was “cooled down”, not by prudential controls but by a combination of “jawboning” by then RBA Governor Ian Macfarlane warning against the dangers of property speculation and then the start of an interest rate tightening cycle as the economy improved. The collapse of a high profile property spruiker’s business and poor home affordability also helped. </p>
<p>But while the prudential regulator made sure that lending standards were being maintained, prudential controls were not varied to achieve macro-economic outcomes.</p>
<p>This time is a bit different for several reasons. </p>
<ul>
<li>First, property price gains are nowhere near as strong – over the last five years average capital city home prices have risen at just 3.5% pa. For Sydney it’s just 6.5% pa. </li>
<li>Second, the gains are not broad based – while Sydney home prices are up 14.5% over the year to April, for the other capital cities the gain is just 1.7%. </li>
<li>Third, credit growth is running at a fraction of what was seen in 2003 with total housing related credit up 7.3% over the year to March and investor credit up 10.4%.</li>
<li>Finally, unlike in 2003 and 2004 the economy is much weaker. Back then growth had been picking up after a soft patch and was being helped by a super low $A, households happy to take on more debt – remember the line about households having an ATM in their living room - and the start of the mining boom. Now the economy has been sub-par for several years as the mining boom is unwinding. In fact, the rest of the economy needs very low interest rates.</li>
</ul>
<p>But of course its never that simple as the RBA and regulators are aware that expressed relative to household income both home prices and household debt levels are already very high – having never really unwound from the surge into 2003-04. And so they are fearful of letting low interest rates drive them much higher given the risk to the financial system and economy should they then fall sharply.</p>
<p>So to balance all these cross currents there has been a return to using macro prudential controls in order to allow the low interest rates that the economy as a whole needs but at the same time to keep a lid on the property market.</p>
<p>Will it work? Only time will tell on this one. APRA is pretty adamant that it wants to see growth in property investment lending slow into the second half of the year and if lenders don’t tow the line then tougher action is likely. So my feeling is that it probably will work and we should expect to see a slowing in the availability of credit for property investors and as a result some slowing in home price growth in Sydney (maybe back to around 8% pa) and to a lesser degree Melbourne over the next year. However, a downturn in property prices will likely have to await the start of interest rate hikes maybe late next year or in 2017.</p>
<p>However, there are several risks around this. APRA’s 10% “cap” on property investor lending growth could prove too lax and on the other side its hard to know when such regulatory tightening has gone too far in which case the property market could slow more than expected. There is also a danger that it hits cities that are weak anyway (basically all the capital cities except Sydney and Melbourne). And longer term, lenders and borrowers may try to find a way around such prudential controls. </p>
<p>But hopefully by then the economy will have returned to normal and we can go back to relying on interest rates to control the property cycle.</p>
<p><span style="line-height: 1.3em;"><em><span><a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a></span> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.</em> </span></p>
</body></html>

soliver-smf6LQXgW9

Back to the past to control the property cycle: Shane Oliver

<html><body>
<p>Melbourne buyers agent Ian James expects the<span style="line-height: 1.3em;"> Victorian state government foreign nationals stamp duty tax "may well be the straw that breaks the camel’s back."</span></p>
<p>Noting the vast majority of foreign nationals buying investment properties are buying apartments off the plan, Ian James says f<span style="line-height: 1.3em;">or the most part a foreign national purchaser buys in Melbourne because their kids are going to school here or they are waiting to get permanent residency and further to that, citizenship. </span></p>
<p><span style="line-height: 1.3em;">"These are the people who will be your future neighbours, your children’s friends at the local school," Mr James said.</span></p>
<p><span style="line-height: 1.3em;">"We need to increase our population as quickly as possible and whilst the Government looks for more ways to waste our money, I think there are better ways to collect it."</span></p>
<p><span style="line-height: 1.3em;">He said the foreign national investors who buy land and develop townhouses, villas or homes to live in create jobs here in Australia. </span></p>
<p><span style="line-height: 1.3em;">"The foreign nationals spend money to build homes, and furnish them spending money locally in shops.</span></p>
<p><span style="line-height: 1.3em;">"A local buyer can purchase an older home, rent it out for several years until the land appreciates enough to get a further loan to build or redevelop the land. </span></p>
<p><span style="line-height: 1.3em;">"This means, no extra work for builders, no cabinet makers or furniture manufacturers."</span></p>
<p><span style="line-height: 1.3em;">But the JPP Buyer Advocates founder says many of the</span><span style="line-height: 1.3em;"> off the plan properties being sold to them are "overpriced by usually 20%+ and are very difficult to lease out. </span></p>
<p><span style="line-height: 1.3em;">"They are quite often inner city or on the fringe in Docklands and Southbank. </span></p>
<p><span style="line-height: 1.3em;">"Foreigners hold them for 3-5 years and then they sometimes sell them at a break-even or even a loss. </span></p>
<p><span style="line-height: 1.3em;">"The Victorian state government wants to stop foreign nationals buying in Victoria by increasing the stamp duty they must pay. </span></p>
<p><span style="line-height: 1.3em;">"This new 3% tax may well be the straw that breaks the camel’s back. </span></p>
<p><span style="line-height: 1.3em;">"And for all those high rise developments in the pipeline – good luck!!!," he recently blogged at </span><a href="https://www.jpp.com.au/market-comment/market-forces/foreign-investment-and-a-xenophobic-money-grabbing-government/" target="_blank" style="line-height: 1.3em;">JPP Buyer Advocates</a>.<span style="line-height: 1.3em;"> </span></p>
</body></html>

New Victorian foreigners tax the straw to break the camel's back: Ian James

<html><body>
<p>If APRA enforce’s the assessment of a new mortgage holder’s ability to pay down their mortgage obligations the right way, it would cause a heavy blow to the Australian economy. The base assumption is that mortgage stress starts when more than 30% of household income is used to pay down the mortgage. Most households with new financing are already experiencing this stress at record low rates.</p>
<p>In Australia’s instance, and based on after tax income, households would only be able to borrow 3.64x the household income (unless the household already has other debt commitments) if the 7% servicability rule was to be property enforced. The only way to safely assure that new mortgage holders would be able to absorb 7% interest on a new mortgage is if it is based on the ability of the mortgage holder to manage 7% interest rates <em>after income tax and all other debts taken into considerations have been factored in</em>….unless you allow for dodgy measurements which Australian lenders are good at using.</p>
<p><img src="/images/2015/05/25/lf_economics.jpg" alt=""><span style="line-height: 1.3em;">As the above figure illustrated, this would mean one heck of deleveraging event in Australia if new borrowers borrow significantly less than the previous borrowers which would break down Australia’s Ponzi household lending business. Had the RBA not taken abnormal measures to save the housing market now on two occasions in the last seven years, Australia would not be in this problem so far down the road. Until then, hardly a shred of chance APRA will act tough. Like it’s associates at the RBA, talk is talk and data is data. And both have been managing a bubble, not an economy. That’s what the data tells us.</span></p>
<p><em>Lindsay David is the author of </em><a href="https://www.amazon.com.au/Australia-Australian-Credit-Property-Bubble-ebook/dp/B00JJ7UW0S/ref=sr_1_1?ie=UTF8&amp;qid=1410612321&amp;sr=8-1&amp;keywords=australia+boom+to+bust" target="_blank"><span class="s1"><em>Australia: Boom to Bust</em></span></a><em> and </em><a href="https://www.amazon.com/Print-Central-Bankers-Lindsay-David-ebook/dp/B00TMHEDBY/ref=sr_1_1?ie=UTF8&amp;qid=1423979661&amp;sr=8-1&amp;keywords=print+the+central+bankers+bubble" target="_blank"><span class="s1"><em>Print: The Central Bankers Bubble</em></span></a><em>. David recently founded </em><a href="https://www.lfeconomics.com" target="_blank"><span class="s1"><em>LF Economics</em></span></a><em> and holds an MBA from IMD Business School. He blogs at <a href="https://blog.australiaboomtobust.com" target="_blank">Australia Boom to Bust.</a></em></p>
</body></html>

LindsayDavid-WEhfyLvNJJ

APRA won't act tough, just talk on property investor lending: Lindsay David

<html><body>
<div>People seem to love the idea of "macro-prudential" measures. </div>
<div> </div>
<div>It all sounds new and rather exciting, but in truth the term simply refers to financial regulation and approaches to managing systemic risks.<br><br>
</div>
<div>In respect of the housing market, the more popular ideas tend to include caps on loan-to-value ratios or restrictions on the level of debt that can be taken on by a borrower expressed as a multiple of income.</div>
<div> </div>
<div>The Reserve Bank of New Zealand (RBNZ) has taken the approach of limiting lending to investors in Auckland, while investor loans will attract additional capital charges.</div>
<div> </div>
<div>While such a targeted approach has seemed unlikely to date in Australia, lenders do already use similar methods to weed out high-risk loans, for example through restrictions on lending in mining towns, or on certain property types which are perceived to be of higher risk.</div>
<div> </div>
<div>The Reserve Bank of Australia (RBA) has announced on multiple occasions that it is working with APRA in order to monitor lending standards, with APRA already having indicated an advisory 10 per cent cap on the growth of investment mortgage lending books.</div>
<div> </div>
<div>Some banks are now insisting on 20 per cent deposits for investment loans. Others are tweaking borrowing rates, and others still have banned mortgage lending against property investments in self-managed superannuation funds (SMSFs).</div>
<div> </div>
<div>Eventually these measures will begin to take hold of Australia's property markets, even if through perception alone. </div>
<div> </div>
<div>Whether or not more robust measures are taken to target specifically the rampant Sydney market remains to be seen.</div>
<div> </div>
<div>Let's take a look in three parts at the termination of the last Sydney housing market boom in 2003/4 to see what we can learn.<br><br>
</div>
<p><strong><span style="text-decoration: underline;">1 - The "double tap"</span></strong><br><br></p>
<div>Just as has been the case lately in this cycle, APRA began to discuss privately and publicly its concerns with the Sydney housing market through 2003.</div>
<div> </div>
<div>The regulator also took additional steps to collect data on mortgage lenders in order to identify the outliers, and held discussions with boards in order to seek assurance that prudent lending standards were being maintained.</div>
<div> </div>
<div>This alone did not have the desired effect, and APRA consequently ramped up capital requirements and adjustments to mortgage insurance in order to moderate the market.</div>
<div> </div>
<div>Arguably, however, a bigger factor in snapping off the Sydney boom of just over a decade ago was the "double tap" on the brakes applied by the Reserve Bank, hiking rates from 4.75 per cent to 5.25 per cent through two rapid-fire tightening shots in November and December 2003.</div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-pgA6kSfQOLQ/VV8GFNlad7I/AAAAAAAAVjo/EKsxZSpHm1s/s1600/jc1.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-pgA6kSfQOLQ/VV8GFNlad7I/AAAAAAAAVjo/EKsxZSpHm1s/s640/jc1.jpg" width="640" height="274"></a></div>
<p><span style="line-height: 1.3em;">Click to enlarge all charts</span></p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><span style="line-height: 1.3em;">Given that Sydney dwelling price growth was all but cooked within the next quarter, this was arguably the most important factor, with the standard variable mortgage rate (SVR) thereafter remaining above 7 per cent all the way through until the financial crisis.</span></p>
<div> </div>
<div>One troubling matter for the regulator this time around is that the odds of standard variable rates heading to 7 per cent again any time soon are nil, while new borrowers are able to fix borrowing rates at levels close to 4 per cent.</div>
<div> </div>
<div>Futures markets are pricing an inverted yield curve for the remainder of this calendar year, and no rate hikes are priced for 2016 either, with the cash rate expected to remain at historic lows for at least the next 18 months.</div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-R30idufUauE/VV8GGE8h5KI/AAAAAAAAVj8/42KD_MqTwKk/s1600/jc2.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-R30idufUauE/VV8GGE8h5KI/AAAAAAAAVj8/42KD_MqTwKk/s640/jc2.jpg" width="640" height="260"></a></div>
<p><br><span>Ergo, higher lending rates will not be the dampener.</span><br><br><strong><span style="text-decoration: underline;">Part 2 - Supply and underlying demand</span></strong><br><br></p>
<div>Another factor which will be different through this Sydney cycle is interstate migration.<br><br>In the year to September 2003, nearly 33,000 persons fled New South Wales for pastures new.<br><br>As you can see from my chart below, the mirror image movement in the line denoting Queensland in 2003 shows you that they were heading for a cheaper lifestyle in the Sunshine State.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-PMeyYwjJH_E/VV8OQGujGAI/AAAAAAAAVk0/gDyBlT9ayf8/s1600/JC9.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-PMeyYwjJH_E/VV8OQGujGAI/AAAAAAAAVk0/gDyBlT9ayf8/s640/JC9.jpg" width="640" height="262"></a></div>
<p><br><span>However, interstate migration is not going to be a factor to slow the Sydney market in 2015.</span></p>
<p><span style="line-height: 1.3em;">In fact, interstate migration from New South Wales has fallen to its lowest level on record, and is set to decline yet further in the months ahead as Sydneysiders stay put for the superior employment prospects.</span></p>
<p><span style="line-height: 1.3em;">This is putting intense pressure on the Sydney property market, its rail, roads, public transport and infrastructure.</span></p>
<p><span style="line-height: 1.3em;">The below chart says it all. We are constructing far fewer houses than in decades gone by with the supply of shovel-ready land in Sydney falling to almost zero, but population growth in New South Wales has exploded higher.</span></p>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-LvQKaqLVW6Y/VV8GGBbmiUI/AAAAAAAAVkE/0NpsNRJCW3M/s1600/jc3.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-LvQKaqLVW6Y/VV8GGBbmiUI/AAAAAAAAVkE/0NpsNRJCW3M/s640/jc3.jpg" width="640" height="268"></a></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>My <a href="https://petewargent.blogspot.com.au/2015/05/construction-boom-to-break-all-manner" target="_blank">chart packs</a> have shown that rolling annual apartment approvals have ramped up to around 27,000 in Greater Sydney, which is a start, but is hardly going to be enough in itself to pull up the property boom.</div>
<div> </div>
<div>The Real Estate Institute of New South Wales (REINSW) figures showed that at the end of the 2003/4 property boom Sydney had a vacancy rate of 4.4 per cent, and 5.3 per cent on the outer.</div>
<div> </div>
<div>If a property market "in equilibrium" is said to have a vacancy rate of 3 per cent, then Sydney has got some building to do before we get back to that level, at least in the suburbs I visit, which are largely close to the city.</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-03guB3XyK8M/VV8GFR2giGI/AAAAAAAAVjs/d3qOL8mNbP4/s1600/JC5.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-03guB3XyK8M/VV8GFR2giGI/AAAAAAAAVjs/d3qOL8mNbP4/s640/JC5.jpg" width="640" height="278"></a></div>
<p><span style="line-height: 1.3em;">A handful of urban precincts are starting to become "well supplied", particularly to the north of the famous coat-hanger, but as I've shown here previously, the new supply is predominantly of the high rise unit variety.</span></p>
<div class="separator"><a href="https://3.bp.blogspot.com/-ms2EMUJ1vDk/VV8GFL8VBTI/AAAAAAAAVjw/yzDxHUzND2U/s1600/JC6.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-ms2EMUJ1vDk/VV8GFL8VBTI/AAAAAAAAVjw/yzDxHUzND2U/s640/JC6.jpg" width="640" height="272"></a></div>
<p><span style="line-height: 1.3em;">With population growth in New South Wales tracking at above 105,000 per annum, there is a huge and growing demand for property in the harbour city.</span></p>
<p><br><strong><span style="text-decoration: underline;">Part 3 - The pipeline</span></strong><br><br></p>
<div>One final point is that there is an enormous volume of pent-up buyers in the pipeline already, with record loan volumes written prior to the newly-announced lending measures.</div>
<div> </div>
<div>In March, there were $5.9 billion of investor loans written in NSW, the highest figure ever recorded in Australia.</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-0a3mBnK3X4g/VV8HM4KJ-sI/AAAAAAAAVkc/1JzdeXswOBg/s1600/JC7.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-0a3mBnK3X4g/VV8HM4KJ-sI/AAAAAAAAVkc/1JzdeXswOBg/s640/JC7.jpg" width="640" height="270"></a></div>
<p><span style="line-height: 1.3em;">The clincher for mine, though, is that now this has become by no means an investor boom alone - owner-occupiers are piling into the market too, for fear of missing out.</span></p>
<div>Rolling annual lending to owner-occupiers in New South Wales has leapt to its highest ever level at more than $70 billion...and rising fast.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-I3Ldgsooyyw/VV8HM55JMPI/AAAAAAAAVkg/kpA8FUgbqCA/s1600/JC8.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-I3Ldgsooyyw/VV8HM55JMPI/AAAAAAAAVkg/kpA8FUgbqCA/s640/JC8.jpg" width="640" height="276"></a></div>
<p><span style="line-height: 1.3em;">I note that some commentators have called "fading demand" in Sydney based on transaction volumes. I can see why you might think that if you haven't actually been here lately, or attended any viewings, or auctions, but this is to be wrong-footed by the data.</span></p>
<p><span style="line-height: 1.3em;">The principal reason for the diminished number of transactions is that vendors have held back in anticipation of higher prices.</span></p>
<p><span style="line-height: 1.3em;">The level of stock on market in Sydney is almost unthinkably low at the present time, and until this changes the number of buyers will continue to massively outweigh available stock, and prices will continue to rise, confounding the critics.</span></p>
<p><br><a href="https://1.bp.blogspot.com/-wkeCVDQ5tRI/VV8GGJdUvMI/AAAAAAAAVkA/34hWNZwdNWI/s1600/jc4.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-wkeCVDQ5tRI/VV8GGJdUvMI/AAAAAAAAVkA/34hWNZwdNWI/s640/jc4.jpg" width="640" height="276"></a><br><br></p>
<div>If you stop to do the numbers, you will see what I mean. In March 2015 $12.5 billion of mortgage finance was written in the state (as compared to less than $7.5 billion in March 2013). And there is hardly anything listed for sale; at least not for very long.</div>
<div> </div>
<div>And this is before we begin to account for the impact of foreign capital, which every single auction I have attended this year leads me to believe is material, if not game-changing.</div>
<div> </div>
<div>I have no doubt that macro-prudential measures will serve to slow the market eventually - and there may be many more tools deployed that we have not been made aware of - but not before Sydney's median house price has been pushed up towards $1 million and investors have bid gross apartment yields all the way down into the mid 3 per cent range.</div>
<div> </div>
<div>
<em style="line-height: 1.3em;"><strong>PETE WARGENT</strong> is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br><p><em>His book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.</em></p>
</div>
</body></html>

pwargent-M4siyDbqQY

Sydney still heading to $1 million median and 3% rental yields despite macro prudential: Pete Wargent

<html><body>
<div><strong>GUEST OBSERVER</strong></div>
<div> </div>
<div>So what's going on with APRA currently?</div>
<div> </div>
<div>Firstly, the changes are not targetted at homeloans taken to purchase your homes. Rather, there is pressure on the lenders to tighten their policies for lending against, and to buy, investment properties.</div>
<div> </div>
<div>Lending to property investors is way past the speed limit, particularly in Sydney &amp; Melbourne. APRA have made it clear that the banks need to be more careful.</div>
<div>The capital aqequacy ratio's for the banks will also increase. What this effectively does it make it more expensive for banks to lend to investors.</div>
<div> </div>
<div>NAB, CBA &amp; Westpac have already announced to us that investors will not be offered discounts better that is what is published. As you know, us brokers often get discounts 30 or 40 points better than what the banks advertise. Thankfully, we expect our capacity to get much better-than-published rates will still apply to home loans for places you will live in.</div>
<div> </div>
<div>St George is one of my favorite banks, in large part due to their flexibility for investors. They have pre-warned iChoice of forthcoming changes too. For those of you wanting to land a better rate on your investment loan, or perhaps to unlock some equity, these are probably things you should be considering to do immediately, like right now. And the $1,250 Refinance Rebate is still alive. The mortgage industry is ready for a few busy weeks ahead.</div>
<div> </div>
<div>Once all the changes have been implemented, we will see stricter servicing calculations and pressure to reduce interest-only loans and 'cash-out' (equity unlocking). Also, several lenders have already ceased exceeding 80% LVR for investment property loans. On that note, it is important for anyone you know that may have a pre-approval in place for an investment property. Pre-approvals arent always what they seem to be.</div>
<div> </div>
<div>It's being branded a 'mini-GFC' but at the end of the day, it seems like we are simply going back to the old days, where speculative investment loans are harder to get and are not priced the same as your owner-occupied home loan.</div>
<div> </div>
<div>At the end of the day, the concerns held by APRA are to protect our system should we in fact be at 12 o'clock on the property cycle. You can be assured that we at iChoice are on our front foot with all changes and will kep you posted, and are more than happy to advise based on your individual goals and circumstances.</div>
<div> </div>
<div><em>Jason Khoury is the principal at iChoice. He can be contacted <a href="mailto:jason@ichoice.com.au" target="_blank">here</a>.</em></div>
</body></html>

Concerned over getting an investment property loan?: iChoice's Jason Khoury

<html><body>
<p>Ramping up its supervision after the surge in property prices to the investor driven east coast property markets, Australian Prudential Regulation Authority chairman Wayne Byres has indicated the authority was aware of lending <span style="line-height: 1.3em;">examples that were less than prudent.</span></p>
<p>“So there is no confusion, let me be clear that Australian ADIs (authorised deposit-taking institutions) are thankfully well away from the types of subprime lending that have caused so many problems elsewhere (for example, lending with an loan-to-value ratios in excess of 100 per cent, at teaser rates, to borrowers with no real capacity to repay),” he said.</p>
<p>“Nevertheless, our overall conclusion from this hypothetical borrower exercise was that there were clearly examples of practice that were less than prudent,” he told the recent<span style="line-height: 1.3em;"> Customer Owned Banking Association event, which was not open to media, but reported by The Australian.</span></p>
<p><span style="line-height: 1.3em;"><span>“Authorised deposit-taking institutions with more aggressive practices should fully expect to find APRA increasingly at their doorstep," he said.</span></span></p>
<p><span>Meanwhile major lenders have been withdrawing discount offers extended to brokers on property investment loans. </span></p>
<p><span>The </span><em>Australian Broker </em><span>website revealed today that two major banks have amended pricing discounts available to standard variable rate and fixed rate investment loans.</span></p>
<p>It is all part of t<span style="line-height: 1.3em;">he Australian Prudential and Regulatory Authority clamp down on current high lending levels of property investor loans.</span></p>
<p><span style="line-height: 1.3em;">National Australia Bank has also flagged a reduction in the discounts offered to property investor loans following the APRA request to keep investor loan growth below 10% per annum.</span></p>
<p>Available funds will be cut back "by at least a third" within weeks, <span>John Symond, the founder and chairman of Aussie Home Loans believes as banks react to the regulatory authorities.</span></p>
<p>"Banks are going to be knocking back a lot of investor applications," <a href="/expert-insights/investing/tougher-apra-set-to-restrict-property-investor-lending-by-at-least-a-third-john-symond">he told Ross Greenwood on the <em>2GB Money News</em> program this week</a>.</p>
<p>The Commonwealth Bank has reviewed its $1,000 Investment Home Loan Rebate Offer.<br><br>“We will honour the offer for all Investment Home Loan applications, created by close of business on Friday 15 May,” the email read.<br><br>The CBA announced reduced pricing discounts offered on investor loans, while stressing "heavier discounts very much remain available for Owner Occupied lending”.<br><br>The ANZ head of third party relationship channels, Kieran Evans advised ANZ is carefully managing its home loan business to ensure its portfolio grows in a balanced way.<br><br>“As a result, we will be introducing a range of changes to how we manage investor lending effective immediately,” he said.<br><br>For customers with investor only lending, ANZ will only offer advertised rates – discretionary pricing will be not be available, the major said.</p>
<p><span>However, for customers with existing owner occupier lending with </span>ANZ<span>, the major will offer discretionary pricing on investor loans.</span><br><br><span>Further, to offset the removal of investor switching discretions, Evans said </span>ANZ<span> have increased the owner occupier discretion to $1,200 and have reduced the eligibility to greater than $500,000.</span></p>
<p>Bankwest has made it harder for investors to secure loans, as APRA’s campaign on lending standards is taking effect.</p>
<p>Bankwest will now apply a maximum LVR of 80% for investment purposes, including property and shares, a departure from the bank well known for accepting investor loans up to 98% LVR.</p>
<p>The value of home loans written in March jumped 3.8 per cent to $31.3 billion, up 11.7 per cent over the year.</p>
<p>The March rise was principally by investor lending, up 6.4 per cent.</p>
<p>On an annual basis, investor loans were up 20.9 per cent rate, which was more than double the 10 per cent speed limit identified by APRA regulators earlier this year.</p>
<p><span>Banks hav</span>e also been re-assessing the rental income levels that they are calculating when taking into account overall income of investors.</p>
<p>And making it tougher Westpac also foreshadowed changes which will impact investors’ serviceability with the bank removing negative gearing benefits from its servicing calculator.</p>
<p><span>FOR INFORMATION ON PROPERTY LOANS, RATES AND MORE, VISIT MOZO.COM.AU OR <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">CLICK HERE</a> FOR THE</span><span> FREE <em>PROPERTY OBSERVER</em> EBOOK, <em>GET LOAN-SAVVY – TIPS FOR A FIRST TIME, INVESTMENT OR REFINANCING LOAN</em>, WHICH HELPS YOU DECIDE ON A HOME LOAN THAT MEETS YOUR REQUIREMENTS.</span> </p>
</body></html>

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News