IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
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.

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.

[smartcode_project:default project_id=113271 project_image_fid=366708]

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.

“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.

“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.

“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.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

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.

Each residence also has three secure basement car spaces and additional storage.

“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.

“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.”

<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" />

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.

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.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“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.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

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.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Joel Robinson

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

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.

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.

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.

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.

<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" />

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.

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.

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.

<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" />

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.

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.

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.

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.

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.

<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" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

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.

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.

<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>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

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.

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.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

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

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Abadeen unveils penthouse at Park Residences in Cremorne

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

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;

<h2>What is the Help to Buy Scheme?</h2>

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.

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).

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.

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.

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.

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.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<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>

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.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

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

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.

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.

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.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: 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.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: 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.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: 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.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: 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.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: 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.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

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.

Every First Home Owner Grant for new property by state

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.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

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.

<h2>What is NatHERS?</h2>

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;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

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.

<h2>How NatHERS Ratings Work</h2>

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.

The tools can model complex effects of building mass, insulation, window size, and other elements.

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.

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;

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.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: 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.

Cost Savings: 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.

Environmental Impact: 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.

Improved Comfort: 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.

Market Value and Desirability: 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.

Compliance with Building Codes: 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.

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?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

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.

<h3>Convenience and accessibility</h3>

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.

[smartcode_project:default project_id=114215 project_image_fid=204874]

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.

<h3>Vibrant lifestyle and community</h3>

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.

[smartcode_project:default project_id=107714 project_image_fid=214122]

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.

<h3>Potential for higher rental yields and property value appreciation</h3>

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.

[smartcode_project:default project_id=139989 project_image_fid=212887]

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.

<h3>Enhanced security and maintenance</h3>

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.

[smartcode_project:default project_id=108019 project_image_fid=212658]

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.

<h3>Live-work-play balance</h3>

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.

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.

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<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>

<h2>Who pays Stamp Duty?</h2>

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.

<h2>How much does Stamp Duty cost?</h2>

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.

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!

Overall, the stamp duty you need to pay will depend on:

<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>

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.

Ellen Walker

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

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

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.

"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.

They added that the cadence of the cuts may be faster than its central profile.

"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.

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;

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.

<h2>What would a rate cut in February look like for borrowers?</h2>

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;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			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.
			</td>
		</tr>
	</tbody>
</table>

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.

“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.

“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."

&nbsp;

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>
Mortgage rates below 5% are widely available given the cash rate has remained constant at a record low 2.5%.
Loans.com.au, for example, is offering a mortgage with a comparison rate of just 4.58%, according to RateCity.com.au. BankMecu is offering home loans at 4.7% and State Custodians has a mortgage with a comparison rate of 4.74%.
Such low interest rates, along with slowing property price appreciation, have made housing more affordable at a national level than it has been for more than a decade, according to the March 2014 quarter HIA-CBA Housing Affordability Index, released last week.
The index showed that across the country affordability was at its most favourable level since March 2002.
Affordability improved during the quarter in Sydney, Perth and the Australian Capital Territory, while it remained unchanged in Melbourne. Affordability also improved in regional markets in Western Australia, New South Wales and South Australia.
Properties in Adelaide, Hobart and Brisbane, as well as regional areas of Tasmania, Queensland and Victoria became less affordable, the index showed.
In its affordability calculations, the index uses the Reserve Bank of Australia’s indicator lending rate for the discounted variable rate of all bank loans available to homeowners.
The interest rate used in the March quarter was 5.1%. At that interest rate, monthly repayments on a $350,000 mortgage taken over 25 years are just $2,067, according to RateCity.com.au’s home loan calculator.
While most economists agree there’s little chance of an interest rate rise in the near term, many expect rates to be lifted at some point within the next 18 months.
Variable rate loans are still the most popular type, despite the increasing take up of fixed rate mortgages. This means most people who take out a home loan are fully exposed to fluctuations in lenders’ mortgage rates.
The probability that rates will rise means it is important for borrowers to consider higher interest rates in future when taking out a mortgage.
In the March quarter of 2013, the indicator lending rate was 5.67% and the year before that it was 6.67%.
The same $350,000 mortgage, over 25 years at a 5.67% interest rate would cost $2,185 a month – $118 more than the indicator rate in March 2014.
If rates go back up to 6.67%, as they were two years ago when the official cash rate was 4.25%, monthly repayments would rise to $2401 – $334 a month above current levels.
Over a 25 year period, interest rates will change dramatically. Between mid-1989 and early 1990, banks were charging an average of 17% on standard variable owner-occupied mortgages, according to the Australian Bureau of Statistics. Some commentators say there has been a structural shift in interest rate movements that would prevent rates from reaching those levels again, but higher rates than the existing levels are considered more normal.
As recently as mid-2008, the indicator lending rate for bank discounted variable rates was at 8.95%. Repayments on the $350,000 loan back then would have been $2,925 a month. That’s $858 a month more than the cost at current prevailing interest rates, which could cause significant affordability problems for borrowers who have not planned ahead.
Housing affordability index
<img src="/images/2014/06/02/zoe-june-2-one.jpg" alt="">
* Annualised
Source: HIA-Commonwealth Bank Housing Affordability Index* Annualised
</body></html>

zfielding-GvX3Uq9KTa

Thanks to low interest rates, affordability at highest level for over a decade: HIA-CBA index

<html><body>
The regulator that oversees Australian banks and other deposit-taking institutions has released for consultation a draft guide to sound risk management practices for residential mortgage lending.
The paper comes amid warnings that banks’ bad debts are at “unsustainably low levels” and are likely to rise when interest rates are lifted.
The Australian Prudential Regulation Authority’s (APRA) draft prudential practice guide notes that while Australian lenders have experienced low default and loss rates on home mortgages, the strong economy, low interest rates and rising house prices could lead to complacency among lenders.
Residential mortgages account for about half of the assets of the four major banks, the Reserve Bank of Australia estimated in its submission to the Financial Services Inquiry in March.
Each of the major banks reported low levels of bad debts during the recent reporting season.
Morningstar head of Australian banking research David Ellis said the big four banks had been performing strongly and could continue to do so through to the 2015-16 financial year. However, he warned the banks’ bad debts were at “unsustainably low levels”.
“I can’t see that bad debt level declining much further ... it can only go up from here,” he told Property Observer.
Rising interest rates would be the catalyst for increasing default levels in lenders’ mortgage books, Ellis said.
APRA’s draft guide suggests residential mortgage lenders should have policies in place that address their risk appetite and risk management strategies for loans.
It says they should ensure they can identify and control risks in their residential mortgage lending portfolios. It also sets out suggestions for managing loan origination, including assessing the borrower’s capacity to service the debt, verifying income, living expenses and other debt commitments.
The paper outlines good practices for remunerating mortgage brokers that would allow the lender to end or claw back commissions where there were high levels of delinquency. It also suggested lenders should set up systems to prevent brokers from pursuing loans with inadequate or false verification, marginal serviceability, excessive leverage or unsuitable terms for the borrower.
Ellis said that while rising mortgage rates would increase bad debts to banks, it was unlikely that their businesses would harmed overall.
“Higher interest rates mean a stronger economy and a stronger economy means more banking activity which means more profit [for the banks],” Ellis said. “While bad debts will increase, headline profits will also improve.”
Many borrowers are ahead on their mortgage repayments at present. Commonwealth Bank reported recently that 78% of its loan customers had paid in advance by an average of seven months, while Westpac reported around 70% of its loan customers were ahead of their required payment schedules.
APRA has called for comment on its draft guide by July 21, 2014. 
</body></html>

Banking regulator suggests mortgage lenders must address risk management strategies

<html><body>
A survey of 16 economists and experts undertaken by Finder.com.au has found that the Reserve Bank of Australia is unlikely to change their rates in their June meeting tomorrow.
Of course, the question remains as to when the rate will next be increased – with the majority of experts believing we have reached the bottom of the rate cycle.
According to those surveyed, nine forecast an increase next year. This included AMP, ANZ, Bank of Sydney, ING Direct, RAMS, UBS, Heritage Bank, Moody’s Analystics and ME Bank.
Meanwhile, five respondents, from Commonwealth Bank, Commsec, Urbis, HSBC and St George Bank, pointed to a cash rate increase this year.
Of the experts, 10 believed that reactions to the federal budget cuts will delay any change. Nine noted that more stability needs to be seen in the economy before any changes.
Results from Finder survey:
<table style="width: 460px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="215">
Economist/expert, organisation
</td>
<td valign="top" width="426">
Snap shot of comments
</td>
</tr>
<tr>
<td valign="top" width="215">
Shane Oliver, AMP
</td>
<td valign="top" width="426">
“...Nothing's really happened. The Reserve Bank has cut interest rates to these record lows, and that has had an impact on the economy...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Warren Hogan, ANZ
</td>
<td valign="top" width="426">
“...There’s no inflation pressure on the economy just yet so they can keep the rates low, and there's no need to cut them...”
</td>
</tr>
<tr>
<td valign="top" width="215">
John Symond, Aussie
</td>
<td valign="top" width="426">
"...We don't think there will be a change to rates, as the economy continues to send out mixed signals..."
</td>
</tr>
<tr>
<td valign="top" width="215">
Steven Pambris, Bank of Sydney
</td>
<td valign="top" width="426">
“...The current record low interest rates will have to continue for some time...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Michael Blythe, CBA
</td>
<td valign="top" width="426">
“...What will be interesting to see is how the budget's reception will impact household consumption...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Craig James, Commsec
</td>
<td valign="top" width="426">
“...There's been a lot of huffing and puffing about the budget, but really it's people's perception. There's no reason for the reserve Bank to be cutting rates...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Paul Williams, Heritage Bank
</td>
<td valign="top" width="426">
“...The rba will be keeping an eye on the trends in unemployment, developments in key offshore economies, inflation levels and rising tensions in south east asia and europe...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Paul Bloxham, HSBC
</td>
<td valign="top" width="426">
“...The economy is showing signs of rebalancing but inflation is fairly contained at this stage...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Michael Witts, ING Direct
</td>
<td valign="top" width="426">
“...Although consumers appear to reacted adversely to the measures announced in the budget it is too early tell what the lasting impact will be...”
</td>
</tr>
<tr>
<td valign="top" width="215">
John Caelli, ME Bank
</td>
<td valign="top" width="426">
“...Inflation is within the target zone so the RBA can afford to wait and see the recovery unfold…”
</td>
</tr>
<tr>
<td valign="top" width="215">
Glenn Levine, Moody’s Analytics
</td>
<td valign="top" width="426">
“...The RBA will leave interest rates on hold, but this competing dynamic between a below-trend economy and a warming housing market will shape monetary policy in the next 12 months...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Jonathan Chancellor, Property Observer
</td>
<td valign="top" width="426">
“...Other than the post-budget consumer blues, there's little reason for the RBA board to do anything but issues their monthly minutes this June...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Nathan McMullen, RAMS
</td>
<td valign="top" width="426">
“...Monetary policy settings remain mildly expansionary relative to long run averages and are appropriate given the current outlook...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Hans Kunnen, St. George Bank
</td>
<td valign="top" width="426">
“...The economic recovery isn't deep enough for them to be raising money this soon...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Scott Haslem, UBS
</td>
<td valign="top" width="426">
“...It's pretty clear the RBA is expecting the economy to only slowly improve over the next couple of years...”
</td>
</tr>
<tr>
<td valign="top" width="215">
Nicki Hutley, Urbis
</td>
<td valign="top" width="426">
“...Consumers opened their wallets a little wider in the first few months of the year and the housing cycle is in full swing...”
</td>
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</tbody></table>
Property Observer’s editor at large, Jonathan Chancellor, who took part in the survey, noted that <a href="/expert-insights/finance/last-months-price-growth-dip-the-first-since-may-2013-so-rba-will-be-content">the RBA will be interested that national house values have fallen in May</a>, as they have in each of the past three May months.
“But May's fall is the first monthly fall in values since May 2013.
“Meanwhile construction is coming along nicely, with NSW taking the rightful crown from Victoria as the national's busiest new home market. That means, other than the post-budget consumer blues, there's little reason for the RBA board to do anything but issues their monthly minutes this June.”
Last week, Property Observer reported that the <a href="/news/no-australian-housing-bubble-but-negative-gearing-induced-affordability-issues-former-rba-governor-ian-macfarlane">RBA's former governor Ian Macfarlane noted that there is no housing bubble</a>, but that affordability is an issue. Part of the affordability issue, he said, is negative gearing's effect.
For more predictions of when the next rate increase will be, you can see <a href="/expert-insights/finance/what-will-happen-to-interest-rates-next-week-and-when-will-the-next-increase-be">a summary of economists' thoughts here</a>.
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16 experts predict “no change” from RBA tomorrow

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The RBA will be interested that national house values have fallen in May, as they have in each of the past three Mays.
But May's fall is the first monthly fall in values since May 2013. It was down by 1.9% in May – the biggest fall since December 2008.
Meanwhile construction is coming along nicely, with <a href="/news/victoria-loses-residential-building-crown-to-nsw-hia">NSW taking the crown from Victoria as the national's busiest new home market</a>.
That means, other than the post-budget consumer blues, there's little reason for the RBA board to do anything but issue their monthly minutes this June.
But Luci Ellis, the head of the RBA's financial stability department, was spot on when she told the CITI Residential Housing Conference last month that there will be more periods where prices are falling a little in absolute terms in future property market cycles.
<a href="https://www.finder.com.au/rba-cash-rate" target="_blank">My RBA cash rate forecast</a> gets published every month on finder.com.au.
Today's RP Data Rismark Index indicated a national fall in combined capital city dwelling values by 1.9% over the month. Only Darwin and Canberra went up in May.
<img src="/images/2014/06/02/rp-data-june-2-one.gif" alt="">
According to RP Data research director Tim Lawless, the dip can likely be attributed to both seasonality and more moderate housing market conditions.
Across most of the individual capital cities, dwelling values were also down over the month, led by Melbourne with a 3.6% reduction in values.
Sydney, which has been the stand-out performer, experienced a 1.1% fall in prices in May. Prices were up 2.2% over the past quarter.
Since the market low of May 2012, Sydney’s values have climbed 21.1%.
Over the past three months national capital city dwelling values are up 0.7% the lowest rolling quarterly rate of dwelling value appreciation since the three months ending June 2013.
In the May quarter Darwin was the strongest performer, up 5.5%. Melbourne was the weakest over the quarter. Brisbane prices were down 1.7% for the month but rose 2.2% in the quarter.
Prices in Perth and Canberra prices remain flat with little change over the May quarter.
<img src="/images/2014/06/02/rp-data-june-2-two.gif" alt="">
CommSec chief economist Craig James said after the latest data that "house prices couldn’t lift forever."
"At some point there had to be a correction and it seems the Federal Budget caused people to pause and take stock. 
"But the Reserve Bank will take the latest data on home prices in its stride. 
"Auction clearance rates were still healthy over the weekend, so the drop in home prices may just be the pause that refreshes. 
"In addition interest rates are low and there is evidence that the job market is improving. 
"The Reserve Bank can still afford to stay on the interest rate sidelines – perhaps to late 2014 or early 2015," James said
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jchancellor-FAypfDUnLy

Last month's price growth dip the first since May 2013, so RBA will be content

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The Reserve Bank will meet again on Tuesday to decide the fate of the official cash rate, and the predictions are rolling in.
Property Observer has compiled some of the predictions that are being shared by major institutions. Although it appears no one is expecting a change at the upcoming meeting, the point of contention remains the timing of when the next increase will occur.
While nearing the end of 2013, <a href="/expert-insights/buying/crystal-ball-gazing-property-market-predictions-for-2014">many were split over whether interest rates would fall further</a>, now it seems most are looking to rises.
In March, it was reported that some <a href="/expert-insights/finance/economists-predict-interest-rates-will-hit-4-25-by-end-of-2015-but-are-these-projections-likely">economists were expecting interest rates to hit 4.25% by the end of 2015, with some expecting a smaller increase to be more likely</a>.
HSBC Global Research chief economist Australia and New Zealand - Paul Bloxham 
<ul>
<li>NO CHANGE EXPECTED 
</li>
<li>NEXT UPWARDS MOVEMENT MAY BE BEFORE END OF 2014</li>
</ul>
“We expect the RBA to remain on hold next week, at 2.50%. With momentum having slowed a bit, we expect the RBA to repeat that it sees rates as likely to be on hold for 'some time'.
"We still expect the next move to be up, although our view that this occurs before year-end 2014 relies on a further lift in local employment and a pick-up in China.”
ANZ Research’s Morning Note
<ul>
<li>NO CHANGE EXPECTED</li>
</ul>
"Yesterday in Australia, firms’ second estimate for 2014-15 capital expenditure intentions were stronger than market expectations, with non-mining investment expectations upgraded modestly.
"Nonetheless, these data continue to point to only a gradual upswing in non-mining business investment in 2014-15, which supports our view that the RBA is likely to remain on hold for an extended period of time.
"After adjusting for the typical bias in firms’ investment intentions, the survey suggests that total capital expenditure is likely to fall by 5.8% y/y in 2014-15 in year average terms. Actual capital expenditure in Q1 was weaker-than-expected at -4.2% q/q (mkt: -1.5% q/q; ANZ: -0.5% q/q)."
ME Bank general manager markets John Caelli
<ul>
<li>NO CHANGE EXPECTED 
</li>
<li>NEXT UPWARDS MOVEMENT IN Q1 2015</li>
</ul>
“We don’t expect the RBA to change rates in June. Inflation is within the target zone so the RBA can afford to wait and see the recovery unfold, noting economic growth continues to be below average, the transition to non-mining economic activity has further to go, and there will be some fiscal contraction from the budget.
"We don’t see rates increasing until at least the first quarter of 2015.”
Commsec economist Savanth Sebastian
<ul>
<li>NO CHANGE EXPECTED</li>
</ul>
"On Tuesday the Reserve Bank Board hands down its latest monetary policy decision. Since the last rate decision there is unlikely be any significant angst about how the economic recovery is panning out.
"Activity levels have been healthy and the Aussie dollar has barely budged, holding around US92-93c. It will be interestingly to see if there is any discussion by Board members on the ongoing negativity surrounding the Federal Budget and the resulting sharp pullback in consumer confidence.
:We expect the Reserve Bank to stay on the interest rate sidelines and attempt to gauge how the economy tracks over coming months."
In March, Smartline Personal Mortgage Advisors’ <a href="/expert-insights/finance/interest-rates-to-stay-low-for-12-months-smartline">Joe Sirianni said that they do not expect an increase until February 2015</a>.
“Even if rates do rise in early 2015, predictions are that this will be only a 0.25% increase, which will still mean rates will be at some of the lowest levels ever seen,” said Sirianni.
In February, the majority of those <a href="/expert-insights/finance/februarys-rba-rate-decision-the-experts-make-their-predictions">questioned by Property Observer in this exclusive about rates</a>, said that the next movement is likely to be the end of 2014. Whether it will be this year or next, time will tell.
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What will happen to interest rates next week – and when will the next increase be?

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Earlier this week the Australian Bureau of Statistics (ABS) released data which revealed that 46.4% of state and local government taxation revenue over the 2012-13 financial year came from property related taxes.
The data showed that over the year, state and local governments collected a record $35.931 billion in taxes from property related sources.  
In comparison, they collected $20.752 million in taxes from employers, $11,089 million in taxes from the provision of goods and services and $9.638 million in taxes on the use of goods and performance of activities.  As this shows, at a state and local government level property taxes are the largest source of revenue.
<img class="aligncenter size-full wp-image-3293" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Chart-13.jpg" alt="Chart 1">
Source: RP Data, ABS.
The total value of property related taxes increased by 7.2% over the most recent financial year.  In comparison, taxes on employer’s payroll and labour force rose by 5.1%, taxes on the provision of goods and services rose 2.4% and taxes on the use of goods and performance of activities rose 8.6%.
With home values nationally beginning to rise in June 2012, it is clear that state and local government are a major benefactor. With higher home values, taxes such as land tax, municipal rates and stamp duty on conveyances all increase.
<img class="aligncenter size-full wp-image-3294" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Chart-23.jpg" alt="Chart 2" width="500" height="501">
Source: RP Data, ABS.
Of the $35.931 billion in property related tax revenue collected in 2012-13, 40% came from municipal rates and 36% came from stamp duties on conveyances.  Land tax was the only other sizeable contributor to property related tax accounting for 17% of revenue.  Over the year the most significant increase in property related taxes came from stamp duty, up by 16.9%.  The amount of tax revenue collected from municipal rates increased by 6.8%, and land taxes increased by 1.5%.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
Property related tax revenue is only collected by those who own properties. Ultimately every property is owned by someone, some as an owner occupier and some as an investor. 
The taxes levied against property are typically only payable by the owner of the property.  Given this, those who choose to rent rather than own property pay no tax on property.  Not to mention the fact that the cost of renting is typically much lower than the cost of owning, it is no surprise more people are choosing to rent rather than own property.
State and local governments have clearly experienced a significant revenue boost via the improvement in the residential housing market over the year.  Stamp duty in particular has seen a significant rise.  With sales volumes and property values rising there have been more sales to receive stamp duty from and at a higher price which also increases the stamp duty collected. 
Of course, the issue with stamp duty is that it is a tax only collected across those properties which sell.  From a residential perspective this is just 5% to 7% of the total housing stock over a given year.  Stamp duty also acts as a disincentive for home owners to transact property on a more regular basis because it is a tax paid on a new purchase.
Many people have called for the removal of stamp duties which would be a positive move to encourage greater mobility of residents.  Of course state and local governments would lose 36% of their property related tax revenue and 17% of their total taxation revenue. 
Many have called for replacing stamp duty with a blanket land tax, another tax would likely be very unpopular and you’d have to consider how equitable that would be particularly for those who have recently paid stamp duty. 
To put a blanket land tax into perspective to cover the $12.841 billion in stamp duty revenue over the 2012-13 financial year, each residential dwelling would have to pay $1,391.69 based on the ABS estimate of 9,226,900 residential dwellings as at June 2013.  Keep in mind that stamp duty isn’t just payable on residential property transactions.
<img class="aligncenter size-full wp-image-3295" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Chart-33.jpg" alt="Chart 3" width="500" height="163">
Source: RP Data, ABS.
Over the year, stamp duty revenue was higher in each state except for Victoria (-1.4%), Queensland (-6.7%) and the Australian Capital Territory (-3.3%).  New South Wales (21.4%), Western Australia (33.0%) and the Northern Territory (35.5%) recorded the greatest rises in stamp duty revenue. 
According to the RP Data-Rismark Home Value Index, Sydney home values rose by 5.6% over the year, Perth values were 6.0% higher and Darwin values were 6.1% higher.  Conversely, Melbourne home values were 3.4% higher, Brisbane values were just 0.6% higher and Canberra value were 1.1% higher.  Clearly home value rises have a positive effect on stamp duty revenues.
The data highlighted shows that property is the most important source of revenue for state and local governments, accounting for 46.4% of their total taxation revenue.  The issue of course is that these levels of government are looking to constantly grow their revenues. 
The two main sources of property related revenue are rates and stamp duty.  Rates can be grown by encouraging a greater number of ratepayers into a region (create more housing) and stamp duty can only be lifted by changing the rates or encouraging higher prices and/or more sales. 
In certain regions increasing the supply of ratepayers is not possible so it is clear that stamp duty is an extremely important source of revenue. With the housing market recording significant value growth and much higher sales volumes throughout the 2013-14 financial year, no doubt stamp duty revenue will be much higher again. 
The question is can governments continue to rely on property being a one-way bet?  Particularly when the Reserve Bank has repeatedly warned of late that it is not.
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ckusher-ujnxiKuFQs

Can governments continue to rely on property being a one-way bet?

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A Melbourne man who claimed to be a financial planner faced the Magistrates’ Court this week, charged over his involvement in a <a href="https://www.smartcompany.com.au/legal/42108-business-group-swindled-out-of-800-000-through-fraud" target="_blank">fraud</a> scheme said to be worth $100 million over 10 years.
<a href="https://www.theage.com.au/victoria/poker-pro-faces-142-charges-over-100m-fraud-20140528-394ev" target="_blank">Fairfax reports</a> Bill Jordanou, 55, faces 142 charges relating to 40 incidents between 2004 and 2013, including more than 100 charges of “obtaining a financial advantage”, often in the form of home loans and electronic transfers into home loan accounts.
Jordanou is also facing charges related to obtaining property by deception, conspiring to defraud the Commonwealth Bank, ANZ Bank, Bankwest, Bank of Melbourne and Bank of Queensland, conspiring to pervert the course of justice, and the theft of a Mercedes-Benz.
Prosecutor Luke Excell told Fairfax Jordanou is “alleged to have drawn funds using false client approvals and invoices … then used it across various property developments as well as maintaining a lifestyle.”
Excell said Victoria Police became aware of Jordanou’s activities, and those of his associates, when the Commonwealth Bank discovered a number of loan applications lodged on behalf of Jordanou’s clients were supported by false documents, including ATO documents, letters of employment and financial statements.
The bank lodged complaints against accounting firm Zaia Arthur &amp; Associates, where Jordanou was working as a “financial adviser” at the time.
SmartCompany attempted to contact Zaia Arthur &amp; Associates this morning but the phone number listed for the firm has been disconnected.
Jordanou’s lawyer, George Defteros, told Fairfax his client has “been waiting for these charges for two-and-a-half years … and we welcome these charges because Mr Jordanou wants to get on with his life”.
Mark Rantall, chief executive of the Financial Planning Association of Australia told SmartCompany there are a number of rules individual investors and small business owners should follow to safeguard themselves against unsound financial advice.
Rantall says the "golden rule" is to always check the qualifications of the person giving the advice and to make sure they are a member of the FPA, which is the national professional association for financial planners.
“The second golden rule is that if something sounds too good to be true, it usually is,” says Rantall. “If you are being offered a get-rich-quick scheme, the risk associated with that scheme will be extraordinarily high.”
“The third rule is that your financial planner should spend more time talking about you and your investments, than themselves and the products they may be offering,” says Rantall.
Rantall says it is also important to make sure your financial plan matches your own personal risk profile, and that your investments are diversified across different products and different asset categories.
“The final thing would be to make sure you keep you to date with your portfolio and that you always feel comfortable with the investments being recommended,” says Rantall. 
A spokesperson for the FPA told SmartCompany individuals and business owners who are concerned about receiving sound financial advice can use the <a href="https://fpa.com.au/find-a-planner" target="_blank">“Find a Financial Planner” function</a> of the FPA’s website to find an expert, as FPA members are held to higher professional standards. 
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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ekeating-PWvazjYE25

Melbourne financial planner faces court over $100 million fraud charge

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The end of the financial year is almost here, so it’s time to do your tax return. Or perhaps undertake some strategies that save on the tax payable.
Apart from the usual receipts and items claimable by property investors, there are deeper tips and reminders suggested by tax advisors in advice to their private clients. 
<ol>
<li>
Now might be the right time to consider refinancing your home. Do this before the end of the financial year, and the cost and saving could affect the tax payable. But be aware a clear accounting link between the initial mortgage to acquire the property, and the refinanced amount, must be maintained if you wish to offset the interest paid on the investment mortgage. Best be wary of refinancing and including home and investment properties under one mortgage, which may cause ATO red flags, so best check with your accountant before any refinancing.
</li>
<li>Capital losses incurred in any financial year are available to be carried forward to future financial years for an indefinite period if there are insufficient gains to absorb it in the same year. Capital losses cannot be offset against other income such as business trading income if you've made a capital gain. With just a month to go, it might be too late to review your property portfolio to see whether it is worth realising a capital loss to offset the gain. You can't carry losses back.</li>
<li>The 50% discount on capital gains is available where an asset is held for longer than 12 months. Remember the relevant date for calculating capital gains is the contract date, not the eventual date of property settlement.</li>
<li>If you have a geared investment it is worth considering pre-paying next year's bank interest to gain an immediate tax deduction benefit in the 2013-2014 year.</li>
<li>Get a deduction now by pre-paying next year's income protection insurance premiums.</li>
<li>Bring forward expenditure to before 30 June, if you are planning on repairs on your property, though note care should be taken in determining whether a maintenance or repair is deductible or if it is considered a renovation or of a capital nature.</li>
<li>Check on the depreciation claim of the property and its fittings, any repairs or maintenance you have undertaken, any management fees or rental losses throughout the financial year, all taken into consideration in calculating your tax deduction. </li>
<li>Use debt recycling strategies, pooling much of your cashflow through an financial institution offset account to reduce your total annual interest payable. </li>
</ol>
Obtaining sound financial, taxation and investment advice is highly recommended in order to implement any of the above strategies. 
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Eight tax tips for end of financial year property investment planning

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An ASIC investigation and subsequent District Court conviction has found New South Wales-based former mortgage broker, Moustafa “Muzi” Dandachli, of Georges Hall, guilty of falsifying loan application documents.
These documents were in applications for 10 people that included loans ranging from $196,000 to $640,000, and saw home loans totalling almost $3.8 million over a six month period.
Dandachli pleaded guilty in 2013.
Income and employment documents were those that contained false or misleading documents, and he admitted to submitting these knowing that they were untrue.
A number of penalties were handed down by the District Court, including a nine month sentence in jail and then a two year good behaviour bond.
His remorse for acting dishonestly, cooperation with ASIC, and good prospects for rehabilitation were considered by the court.
He had been authorised to provide credit services from 23 December 2010 until 27 February 2012, <a href="/news/former-bankstown-mortgage-broker-pleads-guilty-to-submitting-false-loan-applications-worth-3-8-million">upon which time his employer terminated his authorisation, Property Observer previously reported</a>. He supplied the false applications to two banks from July 2011 to January 2012. The maximum penalty he could have been given would have been two years imprisonment, or $11,000, for each charge, or both.
Deputy chairman for ASIC Peter Kell said that loan fraud is unacceptable. “ASIC’s campaign to identify and crackdown on loan fraud is continuing,” he said. ASIC has banned Dandachli from providing credit activities in the future.
Dandachli operated under Prolink Finance Solutions as Senior Finance Executive, as well as working as a finance consultant with The Finance group in 2012. He was a 2011 finalist for Vow Financial's Altitude Award Broker Partner of the Year (Rising Star). In December 2011, Broker News reported that he was looking to recruit loan writers in a particularly busy market, even putting off his holidays until January due to the rush, with the RBA having chopped rates.
The MFAA had expelled Dandachli from membership in 27 August 2012, having been suspended on 6 July 2012 pending further investigations.
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Former NSW broker convicted of falsifying loan applications

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When interest rates are decreasing, property owners paying variable rates are among those who begin to feel a little bit more relaxed about their repayments.
However, the verdict from most economists is that the <a href="/expert-insights/finance/borrowers-warned-of-interest-rate-hikes-by-late-2014">next interest rate movement will be an increase from today’s record lows</a>. While it’s not time to panic quite yet – the general consensus is also that we will have a period of stability – it’s certainly time to put into place some measures if you haven’t thought about the impact of an interest rate increase.
In fact, ME Bank’s latest Household Financial Comfort Report, which noted that a “wait and see” approach is indeed likely from the Reserve Bank, saw 19% of people note that they had not budgeted for any rate increase.
ME Bank’s general manager for asset products Luke Easton told Property Observer that awareness of potential changes is crucial, and then those with mortgages must be allowing for changes.
So, what can you do?
Fixing your home loan
The first thing that jumps to everyone’s minds is fixing your loan while rates are low. While this may be a good solution for some, it can leave you locked in and unable to be as flexible as you may need with your loan.
Easton suggests that splitting your loan into part-fixed and part-variable might actually be a better plan. However, he notes: “Everyone is different. People should be doing what suits their own situation.”
This is good advice – not every investor and home owner will want to fix. While a fixed rate will ensure you have a low rate for a period of time, and regular repayments, it does tend to be higher than the variable rates you can currently achieve. If rates did fall further, you’d be left paying more.
Break costs, such as early repayment penalties, may come into play if you aren’t completely aware of what you’re signing up for with a fixed rate loan.
USEFUL READING: <a href="/expert-insights/finance/analysis-is-it-worth-fixing-your-home-loan">Analysis: Is it worth fixing your home loan?</a>
Creating a buffer
Paying off more now, while you have the opportunity, is a great way to give yourself some breathing space for if rates do suddenly increase, said Easton.
If you put in some extra, then if you suddenly struggle to keep up you will have some space on the other end. Those who pay off the minimum are not necessarily putting themselves in the best situation.
Recently, Smartline suggested that <a href="/expert-insights/finance/now-is-the-time-to-aggressively-make-mortgage-repayments-smartline">now is the best environment in which to be aggressively making mortgage repayments</a> as reduced interest expenses mean you can pay off your principal quickly.
Practice repaying at a higher rate
Consider what might happen to your loan if the interest rate increased. Look to be putting this amount in for each repayment and see how you manage. If you’re struggling, then you need to be looking to solutions quickly – sometimes a visit to your lender, or a financial planner, can assist.
There are also other features you can consider to help you with your home loan – such as offset accounts. There’s an <a href="/expert-insights/finance/how-to-turn-bad-debt-into-good">interesting explanation here as to how offset accounts can be beneficial</a>.
If you’re looking to get a home loan today, then make sure you factor these aspects in to your own personal exploration around what you can afford. At the end of the day, there’s <a href="/expert-insights/finance/theres-more-to-home-loans-than-interest-rates">more to your mortgage than the interest rate</a>.
Timeless mortgage information:
<a href="/expert-insights/finance/10-tips-to-paying-off-your-home-loan-quicker">10 tips for paying off your mortgage quicker</a>
<a href="/expert-insights/finance/using-comparison-websites-to-find-the-lowest-interest-rates">Using comparison websites to find the lowest interest rates</a>
<a href="/expert-insights/one-in-10-happy-to-borrow-close-to-100-loan-market">One in 10 happy to borrow close to 100%</a>: Loan Market
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