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.

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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]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

&nbsp;

Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

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>
Reserve Bank Governor Glenn Stevens has again weighed in on the value of the Australian dollar, <a target="_blank" href="https://www.rba.gov.au/speeches/2013/sp-gov-211113">telling</a> a group of economists the bank is open to the idea of intervening to bring its value down.

With the Australian dollar having been plus or minus 10 cents from parity with the US dollar for most of the past six years, many of us may have forgotten that only a decade ago Australians were complaining about how stubbornly low it was.
At that time the exchange rate was only a little above 50 cents, and some pundits were predicting worse was to come. Imported goods and holidays were expensive, but of course the beneficiaries of this low exchange rate were exporters of goods, as well as service exporters in the education and tourism sectors in particular.
Movements in the Australian dollar since the floating of the exchange rate in 1983 have been volatile and unpredictable, so that there is in fact nothing particularly unusual about the past decade, as the chart below shows.
<img style="font-size: 0.8em;" width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/35280/width668/byzdphds-1384405044.jpg">
Data: Reserve Bank of Australia
Most Australian companies now know how to deal with exchange rate volatility through using hedging, which allows companies to deal with uncertainty about future exchange rates. While volatility might seem to be undesirable, there is remarkably little empirical evidence that the kind of volatility in the exchange rate that we suffer in Australia has significant costs.
Despite this, the majority of economists, including those within the Reserve Bank and the Treasury view the current exchange rate as too high. My view is a fair value for the Australian dollar would be in the range of 70 to 80 US cents, and there has been little to suggest that this range has moved in the past decade. This range would enable the competitiveness required for an even balance of trade over a long period.
In the early 2000s I was arguing that the Australian dollar was significantly undervalued, and today the exchange rate is overvalued to the tune of at least 15%. However, the undervaluation of the Australian dollar lasted for several years, and the current overvaluation is likely to continue for at least the next year or two.
There is no doubt that exchange rates can be misaligned, sometimes for very long periods of time. The exchange rate is an asset price, and as with other asset prices there is reasonable debate about what constitutes fair value, and how to estimate this value.
Misalignments can be driven by a number of factors. The recent overvaluation of the Australian dollar has been largely to do with loose monetary policy in the United States, and also Europe and Japan. With Australia’s economy being relatively strong, and our interest rates remaining above those in the rest of the West, money has flowed into Australia and kept our exchange rate strong.
What can we do about it?
At the moment there are a number of countries that have floating exchange rates that are suffering from similar problems with overvaluation to those facing Australia. These include emerging economies such as Brazil, middle income countries such as South Korea, and richer countries such as Switzerland. Some of these countries have tried to stop appreciation of the exchange rate, with mixed success.
The first means of addressing an overvalued exchange rate is to fix the exchange rate. We could for example, ask the RBA to fix the exchange rate at 75 US cents.
This would require the RBA to buy and sell as many Asutralian dollars as the market required at this fixed rate. At the moment that would have the RBA dramatically increasing its holdings of US dollars, as the supply of US dollars to buy Australian dollars at that price would greatly exceed market demand. Many economists argue that fixed exchange rates are too inflexible and should not be considered.
My view is that fixing the exchange rate should not be completely ruled out, but the problem is that this limits flexibility at times when this is required, and in the case of Australia, why would we fix to the US dollar, when that currency is clearly in such a decline?
At the moment such a peg would require ultra low Australian interest rates, which would no doubt lead to problems such as further overheating in property and other asset markets.
A less extreme form of intervention by central banks involves them buying and selling currency to try to limit exchange rate movements. The RBA for example, sometimes “leans against” big movements in either direction of the Australian dollar. The problem with these interventions is that there is limited evidence of their effectiveness in having a lasting effect on the exchange rate. The reason for this is that the size of the foreign exchange market is huge, even relative to the size of central bank asset holdings.
In the latest survey, turnover in the Australian dollar averages around US$180 billion per day, a very large amount even for central banks to create a dent in. For example, the central bank in Switzerland began intervening to try to limit Swiss Franc appreciation in 2009, and in the subsequent four years these interventions had at best a minimal impact on the exchange rate.
Many countries have tried to limit exchange rate movements by imposing “capital controls.” These controls can take various forms, but the idea is to tax or put some other kind of constraint on foreign money coming into a country, with the aim being to reduce the value of a currency. China has had capital controls as part of its managed exchange rate system, and Chile and Malaysia have also imposed capital controls in recent years.
As with central bank intervention, the evidence on the effectiveness of capital controls in managing exchange rates is mixed. Capital controls can work in a strong economy, but in a country such as Australia that requires significant capital inflow each year, putting costs on these inflows runs the risk of putting off foreign investors. At a minimum that is likely to lead to much higher interest rates, along with running a risk of recession as a result.
Another way to try to limit exchange rate overvaluation is to loosen monetary policy. The Reserve Bank long ago decided that the prime objective for monetary policy was to keep inflation low and stable. Other objectives should be secondary, and should not interfere with this inflation focus. I would agree with this focus, and to cut interest rates to weaken the exchange rate at the current time would not be appropriate.
Are there other options? The IMF lists six types of exchange rate regimes, and classifies countries accordingly. Aside from floating exchange rate systems such as Australia’s, all of the other regimes involve forms of intervention or controls such as those above.
There is only one other possibility. We could of course apply for admission to the Euro, so as to give that system a boost, or adopt the US dollar. Currency unions are not always a bad idea, though they seem to be a bit out of fashion, and in the case of Australia the big question is who should we form a union with? The Europeans? The Americans? Maybe we should cosy up to the Kiwis?
There is no doubt that our overvalued exchange rate is costly. When the US, Japan and Europe unwind their unusually loose monetary policy there is little doubt that the AUD will weaken. Unfortunately in the meantime the best we can do is hope that those days come sooner rather than later.

<hr>
Mark Crosby is associate professor of economics at <a target="_blank" href="https://www.mbs.edu/Pages/Default.aspx">Melbourne Business School</a>
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/intervene-or-wait-the-rba-faces-tricky-path-to-a-lower-dollar-20091">original article</a>.
 
<img width="1" src="https://counter.theconversation.edu.au/content/20091/count.gif" height="1" alt="The Conversation">
</body></html>

jake-cSmGT7VXVf

To intervene, or not to intervene? The RBA's dollar dilemma

<html><body>
About half of all four- and five-year fixed rate home loans - and more than a third of three-year fixed rate home loans - have had their rates adjusted upwards in the past two months, according to financial comparison website RateCity.  
“The fact that a growing number of institutions are increasing their rates on fixed home loans shows where they think the market might be heading,’’ CEO Alex Parsons says.  
He points out that:  
<ul>
<li>
Since early September, 188 fixed home loans have had rate hikes – including 88 in the past fortnight - by a maximum of 0.55%.
</li>
<li>
The trend is for longer fixed rates drifting up.
</li>
<li>
Competition remains high among one- and two-year fixed home loans, with rates starting from 4.29% fixed for one year.
</li>
</ul>
The news has prompted RateCity to urge borrowers to prepare now for higher rates.
“Movements in fixed rates are common and based on a number of variables, but the trend is definitely to longer term rates drifting up,” Parsons said.  
In comparison, shorter term fixed rates remain largely unchanged, or even fell slightly in recent weeks, with one-year fixed rates as low as 4.29%.  
“We have seen a lot of competition in the shorter term fixed rates. While they are also subject to the same market forces as longer terms, they’re a lower-risk way for institutions to offer hot rates to attract new customers,” he said.  
Fixing can be an attractive option for borrowers because it offers repayment security, making it easier to budget. But they aren’t as flexible, which can be a drawback. Also, some lenders make it harder for borrowers to make extra repayments as a way of building a repayment buffer. And others charge big fees for exiting the loan before the end of the fixed term.
Another key area to watch out for is the interest rate to which fixed loans revert once the set period is over, said Parsons.  
“Most fixed rates revert to a variable rate option at the end of the fixed period, which, depending on the rate cycle, could be more than 1% higher,’’ he said. “This can mean having to fork out thousands of dollars more per year to service the same loan.  
“Borrowers should prepare for the eventuality of higher interest rates in the future and make sure they can comfortably afford to service the loan if rates increase to the historical average of around 7% or even higher.”  
For example, a 0.25% rate rise would increase the first 12 months’ repayments by $540 (or $45 per month) for a borrower with a $300,000 home loan and paying the basic variable rate of 5.19%.  
But, if rates were to return to their historical average of 7%, the same borrower would have to find an extra $333 a month, or $3996 a year.  
“If borrowers aren’t sure whether they want to fix or not, they do have the option of splitting their loan between fixed and variable – so they have the best of both worlds.”    
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
</body></html>

staylor-63KgDrKwoY

Fixed rates set to rise further in November: Rate City

<html><body>
While fixed interest rates seem to have at last passed their nadir, the market still can't quite seem to get its head around the next movement in interest rates being up.
The implied yield curve at close of business this Tuesday was pretty much there, yet still suggested that on balance the cash rate may well be staying somewhere close to exactly where it is throughout the next calendar year.
<img width="470" src="https://3.bp.blogspot.com/-k0weKQVxMV0/UowjPpQikpI/AAAAAAAAK2k/HU_6ZgjcM74/s400/Low+interest+rates+for+2014.jpg" height="301">
Source: ASX
Whether or not the next move does prove to be an upwards adjustment, we are perhaps unlikely to see the first hike until the uptrend in unemployment is broken, however long that takes. Having spent too much of the last decade preparing ABS figures, one thing that I can warn you to expect from employment data is volatility, but we are hoping to see improving jobs data in 2014.
More cuts?
Views differ a little on the outlook for interest rates. NAB believes that there will be a cut in the official cash rate (OCR) to 2.25% in the middle of next year, while Westpac believes that the OCR will be cut twice in 2014 to just 2.00%.
What gives? The short answer is that falling mining investment is likely to represent a headwind for economic growth, and thus the Reserve Bank (RBA) may need to cut rates in order to stimulate. The expected level of total capital expenditure according to the ABS is now beginning to slide and is forecast to fall further as we head in 2014/15 after a booming decade.
<img width="470" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/1ecf42b5ec12e8bcca2573460014f2df/Body/0.1300!OpenElement&amp;FieldElemFormat=gif" height="179" alt="Chart: Financial year actual and expected expenditure- Total Capital Expenditure">
Source: ABS
The RBA forecasts below-trend economic growth next year before stimulatory interest rates beginning to push GDP upwards into 2015.
<a imageanchor="1" href="https://3.bp.blogspot.com/-v6GJ0NH9UDw/UowkgrqXthI/AAAAAAAAK2w/W_Q8oKlp_PA/s1600/RBA+GDP+forecast.jpg"><img width="470" src="https://3.bp.blogspot.com/-v6GJ0NH9UDw/UowkgrqXthI/AAAAAAAAK2w/W_Q8oKlp_PA/s400/RBA+GDP+forecast.jpg" height="429"></a>
Delayed effect
Interest rates tend to have a delayed impact on spending patterns. There are the first signs that the mortgage affordability dividend delivered by interest rate cuts totalling a non-trivial 225bps over the past two years are resulting in increasing consumer spending.
The major concern for many is that low interest rates will also result in resurgent housing markets. Interestingly, in 2011 there were a spate of blunt news articles stating in no uncertain terms that dwelling prices would not be turned upwards by lower borrowing rates.
The effects of an altered monetary policy stance are not evident overnight. Interest rates take time to impact levels of business and construction activity (anyone who is in inner Sydney, must surely  by now be aware of the increased levels of construction activity), and they take time to impact housing market sentiment too. Some easing cycles, of course, will have more impact than others.
By the time 2013 is out dwelling prices across Australia may have appreciated by ~10% for the calendar year, with the usual varying fortunes between cities and states. Here is how the RBA is seeing dwelling prices across Australia in its latest chart pack, the data of which runs to 31 October.
<img src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6bl-dwelpri-small.gif?accessed=2013-11-20-13-50-26" alt="Dwelling Prices graph" width="470">
The evidence suggests that the housing market in Sydney is in the middle of a strong upswing, after a sloppy few years post-2003. Other markets such as Brisbane and Adelaide (and possibly Hobart) are only just beginning to respond in any meaningful manner to low interest rates by moving upwards.
For months now there has been a lot of sifting through the RBA tea-leaves in order to find supposed references - coded or otherwise - to a housing market intervention. I'm not seeing it, but if you have your proverbial magnifying glass to hand, you can do your own sleuth work, for here is what the latest <a target="_blank" href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2013/05112013">RBA minutes of monetary policy</a> had to say on the matter:"Members noted that conditions in the housing market continued to strengthen. Nationally, dwelling prices were above their late 2010 peak, with prices over the three months to October increasing significantly in Sydney.
Housing turnover and loan approvals had picked up noticeably. Improved conditions in the established housing market were providing an impetus to dwelling investment, with residential building approvals increasing over the year.
Approvals increased notably in September, driven by a pick-up in high-density approvals, which tend to be quite volatile from one month to the next. In discussion, members observed that developments in the established housing market and the increase in new dwelling activity seen to date were among the expected effects of the low level of interest rates."
Macroprudential measures?
The RBA has duly noted the price action in Sydney but the use of turns of phrase such as "expected effects" doesn't suggest a particularly excited board to me, rather a watchful one. Note that were macroprudential measures to be introduced in Australia, they would spawned via the Australian Prudential Regulation Authority - more commonly known as APRA - rather than the Reserve Bank.
APRA is the agency which retains the power to act to change the behaviour and balance sheets of entities in order to achieve macroprudential outcomes. APRA will have noted that <a target="_blank" href="https://www.apra.gov.au/adi/Publications/Documents/Quarterly-ADI-Property-Exposures-June-2013.pdf">more than 38% of housing loan approvals in the June 2013</a> quarter were for interest only products. This suggests a high level of speculative investor activity and will be one point of concern.

<hr>
Pete Wargent 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>.
His new 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>' was released on 1 September 2013.
 
 
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pwargent-M4siyDbqQY

It's going to be a low interest rates 2014, but will the RBA cut rates further?

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Under the GST law, a person or a business can claim input tax credits (ITCs) for acquiring things for a creditable purpose. A taxpayer acquires a thing for a “creditable purpose” to the extent he or she acquires it in carrying on his or her enterprise.
However, the GST law provides that a taxpayer does not acquire a thing for creditable purpose to the extent the acquisition is of a private or domestic nature.
Seems relatively straightforward – if that can ever be said about taxation matters! But, spending money on acquiring things of a private or domestic nature can be an area that confuses many.
In a recent AAT case, the Tribunal upheld GST and penalty assessments against a taxpayer concerning incorrect claims for ITCs.
The taxpayer carried on a computer repair business. Following an audit of the taxpayer's BASs for the period March 31, 2007 to February 28, 2011, the ATO issued GST net amount assessments, penalty assessments and cancelled the taxpayer's GST registration.
The Tax Commissioner disallowed many (although not all) of the taxpayer's ITC claims on the basis that he did not consider the taxpayer was carrying on an enterprise during the relevant tax periods, that the expenses on which the ITC claims were based appeared to be private in nature (e.g. certain legal and health expenses) and were considered not to have any obvious links to commercial activity, and that the taxpayer did not provide tax invoices for the expenses as claimed creditable acquisitions.
In an along-the-way win for the taxpayer, the Tribunal noted that the Commissioner reconsidered the matter in light of additional information since provided by the taxpayer, and now accepted that the taxpayer was carrying on an enterprise during the relevant tax periods and that the decision to cancel his GST registration should be set aside. For this reason, the Commissioner also accepted that some (but not all) of the input tax credits claimed were properly allowable.
In the taxpayer's case, the Tribunal said the reasons for the relevant supplies (ie made to him) not being taxable included that either it had not been established that the person making the supplies was registered or required to be registered and/or that the supplies by that person were GST-free or input taxed.
The Tribunal said the taxpayer claimed an ITC in respect of his purchase of a second-hand motor vehicle pursuant to a "private sale". No invoice was produced for this transaction. As no GST liability would have been incurred by the seller, the taxpayer was not entitled to any input tax credit.
The taxpayer also claimed a number of items for "occupancy expenses". The AAT said the Commissioner understood those expenses related to the taxpayer's personal accommodation, particularly in a private home in Perth. He did not accept the expenses were "creditable acquisitions". The Tribunal said no invoices were provided by the taxpayer in respect of the claims, so it had not been established that any GST was paid or incurred by the person that supplied the accommodation to the taxpayer.
The Tribunal worked through a number of other ITC claims that had been made by the taxpayer, finding that most were not allowable. It worked through the taxpayer's exercise book ledgers in the process. These included:
<ul>
<li>
Running expenses – the AAT said there was no evidence that any GST was incurred by the relevant supplier of those expenses.
</li>
<li>
Legal expenses – understood to relate to expenses connected to an assault the taxpayer suffered at a hotel. The AAT saw no connection with the taxpayer's business activity.
</li>
<li>
Health expenses, including gym expenses – the AAT considered that the items claimed are clearly private or domestic in nature and were insufficiently connected to the taxpayer's business.
</li>
<li>
Finance expenses – the Tax Commissioner said he was unable to match most of those items to invoices so that he could not be sure exactly what they relate to. In addition, some items related to cash advances made to the taxpayer but the AAT said the documents relating to these made no reference to any GST payable by anyone.
</li>
<li>
Electronic goods – again, the Tax Commissioner said he was unable to match most of those items to documentary evidence.
</li>
<li>
Reference magazines – the Commissioner accepted that the taxpayer's purchases of relevant information technology magazines were sufficiently related to his enterprise to be properly regarded as creditable acquisitions for GST purposes. But the same could not be said of other magazines the taxpayer purchased.
</li>
<li>
Event "hosting" - The items claimed under this characterisation related to functions held by the taxpayer in his room at the house for friends and/or clients. The Tax Commissioner's understanding was that attendance at these functions was by invitation only and was not open to the public generally. If that is the case, then these expenses cannot be creditable acquisitions because they are excluded by a specific provision in the GST Act.
</li>
<li>
Imported items - The taxpayer made a number of claims for imported items described as "reference-magazine" or "reference-book" and so on. The relevant invoices in each case showed that the relevant item was imported and do not record any GST component. The AAT said that, as stated, each acquisition was “A non-taxable importation” pursuant to the GST Act and the Customs Tariff Act 1995 – essentially because the value of the goods imported did not exceed $1000. Any such importation will not be a “creditable importation” pursuant to the GST Act. As such, there is no entitlement to an input tax credit for that importation.
</li>
</ul>
The Tax Commissioner allowed part of the taxpayer's claims concerning travel and telephone expenses.
After reviewing the case, the Tribunal considered that the GST net amount assessments in relation to each of the 48 individual monthly tax periods ended March 31, 2007 to February 28, 2011 inclusive were not open to review.
The AAT said it accepted that the inference from the evidence and the taxpayer's conduct throughout was that it showed a disregard of or indifference to a risk foreseeable by a reasonable person. The Tribunal saw no basis to counter the Commissioner's submission that the taxpayer's behaviour was reckless in that he claimed input tax credits for items clearly private or personal in nature and/or not acquired in the carrying on of the enterprise.
Taxpayers in business can validly claim input tax credits for many expenses they incur that relate to the business. However, it must be proved that GST was incurred or paid by the supplier of the goods/services and that they relate to carrying on an enterprise. The taxpayer in the above AAT case was not able to prove this to the satisfaction of the Tribunal in regard to many of the expenses he claimed. SMEs should take note.
For those interested in knowing more about how the GST system operates, the Thomson Reuters Australian GST Handbook 2013-14 contains an excellent explanation of the GST system, covering all aspects of the GST legislation – simply <a href="https://www.propertyobserver.com.au/https://www.thomsonreuters.com.au/australian-gst-handbook-2013-14-book/productdetail/120389">visit our website for details</a>.

<hr>
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions. Featured product is the 2013-14 edition of "The Essential SMSF Guide", written by Tony Negline – see details <a href="https://www.propertyobserver.com.au/https://www.thomsonreuters.com.au/the-essential-smsf-guide-2013-14/productdetail/120644?utm_source=smartcompany&amp;utm_medium=webpage&amp;utm_campaign=smsf">here</a>.
This article first appeared on <a href="https://SmartCompany.com.au" target="_blank">SmartCompany</a>.
 
 
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thayes-XhNcNKLNWa

Claiming GST credits can be very costly without a ‘creditable purpose'

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So, you’ve got the home loan, bought the house and are now you’re settling in ...
Well, don’t get too comfortable - nothing stays the same and a proactive approach to your borrowing arrangements over time can save you thousands.
It seems your home loan can be likened to the car you drive – just as it reflects your lifestyle, needs and goals at any stage in life, so, too, should your home loan.
"This is well illustrated by the fact that the cheap runabout you drive when you’re in your early 20s is very different to the seven-seater four-wheel-drive you’ll need in your 40s when you have three children and their friends to transport," says Smartline Personal Mortgage Advisers’ Michelle Schaafsma.
"A young couple starting out who have managed to save their deposit and are in the early stages of their careers, on entry level incomes, probably only need a basic loan with minimal fees and features that simply allows them to maximise paying every dollar off as quickly as possible.
"However, five years later they’re in a very different situation. They’ve paid off a chunk of their home loan and both are earning considerably more and perhaps saving for something significant, such as renovations or an overseas trip. They may well be better off with a home loan package that includes an offset account, redraw, a low fee credit card and a more competitive interest rate.
"Later in life, as the couple moves towards retirement, they may not want or need a complex loan or loan structure. They may well want a basic loan again that is going to allow them to quickly pay out the final amount owing on their home loan in the last few years of their working lives."
Schaafsma said a good mortgage broker would review each client’s situation annually to ensure that loan products and structures in place continue to meet their needs and goals.
She says clients who haven’t reviewed their home loan arrangements in the past three years could be getting a better deal. "The point of the review should not be to focus just on the interest rate on offer and the lender, although they are certainly key considerations, but to determine whether you need the same things out of a loan now that you did when you first took it out.
"If your lifestyle, requirements and financial situation have changed, for better or worse, then there is probably scope to investigate other options.
"Take the couple facing cash flow pressure as a result of reduced household income and/or considerably increased expenses, such as private school fees, who have diligently been making principal and interest repayments on their home loan for 10 years.
"They could probably refinance their mortgage and reset the term of their loan. This would considerably reduce their repayments and improve their household cash flow position and their whole lifestyle."
Schaafsma said the policies and criteria of the banks had changed considerably in recent years and continue to do so. "So, it might be that some forms of income (such as commissions or bonuses) that weren’t previously considered by your lender now are, or that you’re able to borrow a higher percentage of the property’s value.
"The competition in the home loan market also means banks tend to offer loans on more favourable terms to new customers, or existing customers who are prepared to ask for a discount.
"An experienced mortgage adviser will consider your current situation in depth and be able to advise of the best approach to maximise the opportunities available to you."
 
 
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Home loans need to change to reflect your lifestyle

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Without a doubt one of the overwhelming characteristics of the Mosman market was the insatiable desire of residents to trade in the market. Today, it is instinctively clear that this desire has been lost as a result of the global financial crisis (GFC) as residents re-calibrate their lifestyles and requirements. For example, in 2012 out of 52 weeks there were on 33 occasions more than 100 houses on the market. In 2013 Mosman has only broken the 100 mark on just four occasions which explains why so few houses are on the market. I did a comparison for house sales in Mosman for 2013, 2012 and 2007 (the golden market before the GFC hit.)
Bear in mind before the GFC Mosman used to trade approximately 10% of the approximate 4,800 houses – 480.
Mosman house sales January 1 2013 to November 7 2013.
<ul>
<li>
Total – 267
</li>
<li>
Average Price – $2,825,942
</li>
<li>
Private Treaty – 207
</li>
<li>
Public Auction – 60
</li>
<li>
Total Value Sold – $714,324,833
</li>
<li>
Adjusted Clearance Rate – 44%
<ul></ul>
</li>
</ul>
Mosman house sales January 1 2012 to December 31 2012.
<ul>
<li>
Total – 283
</li>
<li>
Average price – $2,852,759
</li>
<li>
Private treaty – 250
</li>
<li>
Public auction – 33
</li>
<li>
Total value sold – $788,975,000
</li>
<li>
Adjusted clearance rate – 22%
</li>
</ul>
Based on what is on the market today it would be fair to assume that 2013 Mosman house sales will go very close to reaching $1 billion as well as breaking the 300 barrier, so all in all the Mosman market is performing much better than many give credit.
Mosman house sales January 1 2007 to December 31 2007.
<ul>
<li>Total – 374</li>
<li>
Average price – $3,035,363
</li>
<li>
Private treaty – 324
</li>
<li>
Public auction – 50
</li>
<li>
Total value sold – $1,135,225,667
</li>
<li>
Adjusted clearance rate – 38%
<ul></ul>
</li>
</ul>
So that’s what the good old days looked like although I’m prepared to forecast that Mosman will go very close to $1 billion in 2013 with total value sold. Houses are in blue and apartments in purple.
<img alt="7-11-2013 1-13-12 PM" src="https://www.rwm.com.au/files/2013/11/7-11-2013-1-13-12-PM.jpg" width="470" height="243">
Of course next year is another story with <a title="surging Sydney property market could spoil RBA’s New Year " href="/news" target="_blank">surging Sydney property market could spoil RBA’s New Year </a>given on Melbourne Cup Day the Reserve Bank of Australia (RBA) left the cash rate at 2.50% so I don’t think the cash rate will be changing anytime soon. The Aussie dollar is climbing back slowly to a possible parity so should the RBA raise the cash rate this would almost certainly drive the Aussie dollar to parity and beyond.
SQM Research director Louis Christopher was reported as saying the “number of enthusiastic buyers, particularly in Sydney, was behind the shortage of housing stock on the market” compared to this time last year. He said Sydney’s stock levels were down a “staggering” 17.3% which is about right given Mosman is struggling to break 100 yet two years ago we had 175 houses on the market in November 2011.
<img alt="6-11-2013 10-17-51 AM" src="https://www.rwm.com.au/files/2013/11/6-11-2013-10-17-51-AM.jpg" width="470" height="320">
Record low interest rates have seen the Sydney property market recording yearly growth past double digits to sit at 11.4% according to the Australian Bureau of Statistics (ABS). Sydney is leading the way with the weighted average of the eight capital cities posting a more than healthy 7.6% gain for the twelve months to September 2013. Canberra and Adelaide are still lagging behind recording 1.2 and 0.6% for the quarter. Perth (0.2%), Darwin (0.4%), Brisbane (1.2%), Hobart (1.4%), Melbourne (1.9%) and Sydney posting (3.6%) so one can only imagine the conundrum facing the RBA with which direction to take the cash rate.
Unless Sydney starts cooling down it will in all probability allow certain areas to crash and burn given the rest of Australia is so far behind. The areas that will be hardest hit will be south-west Sydney which previously has always had huge price corrections and given they are recording record prices so it’s hard to see this being sustained. In 2004, south-west Sydney sustained drops of up to 55% although this time around I don’t see it being as severe given what rocked the market then was the cash rate jumping from 4.25% in February 2002 to 6.75% in December 2007.
The cash rate will go back up and as history shows there are always casualties along the way.

<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" rel="nofollow" target="_blank">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985.
He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" rel="nofollow" target="_blank">Virtual Realty News</a> since 2000.
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
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robertsimeon-hRNTwJyXkQ

Sydney property market is going to give the RBA one hell of a headache

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The Reserve Bank of Australia has signalled the possibility of further rate cuts in its November monetary statement, saying economic growth prospects for 2013 remain below trend.
On Tuesday, the cash rate was left unchanged at 2.5%.
“Overall, the outlook for the global economy is much as it was a few months ago… The prospect of a pick-up in conditions in many advanced economies is likely to see growth for the world as a whole improve from a below-average pace in 2013 to around average in 2014,” the RBA says.
“It was appropriate to hold the cash rate steady, but not to close off the possibility of reducing it further, should that be needed to support economic activity consistent with the inflation target.”

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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RBA says further cuts possible

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A surging Sydney property market could spoil the RBA’s New Year as it seeks to dampen demand for housing but not jeopardise the success of its low rates policies on the broader economy.
With this scenario comes another conundrum: If the bank does have to raise rates for this reason how will it continue its push against the unwelcome effects on exports of a high Aussie dollar?
RP Data national research director Tim Lawless told the Australian Financial Review that he expected the RBA to ‘’remain vigilant’’ – especially in regards to the Sydney and Melbourne property markets -where prices are rising faster than in other cities.
SQM Research director Louis Christopher was reported as saying the number of ‘’enthusiastic buyers, particularly in Sydney, was behind the shortage of housing stock on the market’’ compared to this time last year. He said Sydney’s stock levels were down a ‘’staggering’’ 17.3%, although traditional spring listings are belatedly coming onto the market.
‘’Will (the RBA) allow Sydney to gallop into 2014?’’ he asked. ‘’It will be interesting to see how they respond.’’
Analysts were not surprised at the central bank’s decision to hold rates at 2.5% after eight cuts in the past two years. Lawless said the low rates had had the desired effect of stimulating the housing market.
‘’Transaction numbers are close to 20% higher compared with a year ago and dwelling values across our combined capitals index have risen 7.9% over the past 12 months,’’ he told the AFR.
He said more buyers on the market were encouraging more housing construction, and that the RBA was comfortable with the level of capital gains in the housing market. ‘’The current rate of growth is well below the highs achieved over previous growth cycles and dwelling values across every capital city, apart from Sydney, remain below their previous peaks.’’
 
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Surging Sydney property market could spoil RBA's New Year

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I had a lot of mail from last week’s <a href="/expert-insights/finance/the-20-tips-to-ensure-you-get-your-loan">top 20 tips on getting a mortgage</a>. A lot of readers wanted to know how to save money when you already have a home loan. Here are some tips:
<ol start="1">
<li>
Have a plan: you should plan to own your home as fast as possible, and therefore pay as little interest as possible.
</li>
<li>
Pay attention to the rate: consider a $350,000 loan over 30 years. If you had a 5.3% mortgage and refinanced at 4.94% – maintaining the same repayments – your loan term would drop from 30 years to around 27 years and five months, saving around $60,000 in interest.
</li>
<li>
Be prepared to refinance: to save on a mortgage, you must be prepared to go to a lender with a lower interest rate than your current one. Your mortgage may be a good deal when you sign-up but five years later it could be expensive by industry comparison.
</li>
<li>
Understand the loan term: shorter loan terms usually mean you pay less interest and pay the debt faster. Let’s say you a have $350,000 mortgage at 4.94%, and you opt for a 25-year loan rather than a 30-year: you’d pay 19% less in interest, saving you $61,626. Shifting to a 20-year term will save you $120,199.20.
</li>
<li>
Repayment frequency is key: the higher the frequency of payment, the slower the interest accrues and the faster you pay off the mortgage. If you pay half the monthly repayment amount fortnightly, rather than monthly, or a quarter of the monthly payment weekly, this means you end up paying the equivalent of an extra month’s payment each year. Consider an average mortgage of around $350,000 and a 30 year term at 4.94%. You’d save around four years and eight months off your loan term and over $56,000 in interest, by paying the monthly repayment weekly or fortnightly.
</li>
<li>
Put windfalls into your home loan: Tax refunds, Medicare rebates and work bonuses should go into the home loan, reducing interest and speeding repayment.
</li>
<li>
Have the right loan: ensure your mortgage allows you to put in lump sum amounts. Many fixed rate loans don’t allow this. If you’re offered an offset mortgage that lets you put your income directly into the loan, make sure this suits you. It requires discipline.
</li>
<li>
Do it early: increasing your repayments and putting in lump sums is most effective when you do it early in the term of the loan.
</li>
<li>
Know your fees: the headline repayment figure in your mortgage agreement is not the only number you should look at. Lenders charge different fees, so be cognisant of any incidentals that may not be captured in the comparison rate.
</li>
<li>
Beware of interest only: don’t select an interest-only loan if you want to repay it quickly. Always opt for principal + interest.
</li>
</ol>
When borrowers ‘set and forget’ their mortgage, they usually pay too much interest and have the debt longer than they should. Get focused and save yourself a lot of money.
<hr>
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank" rel="nofollow">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a href="https://twitter.com/markbouris" target="_blank" rel="nofollow">Twitter</a>.
 
 
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mbouris-tauSvXGAM2

Top 10 tips to save money on your home loan

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Lower interest rates and surging property markets – particularly in Melbourne and Sydney – are helping loan providers reap rewards.
Aussie Home Loans last month reached the $2 billion milestone in home loans lodged through its three distribution channels: mortgage brokers, retail outlets and aggregator subsidiary National Mortgage Brokers (nMB). The group’s 150 retail stores broke through the $1 billion milestone for the month in loans provided to new buyers, re-financers and investors.
The $2.1 billion group result for October represents a 22.1% lift above October last year. The news was reported in Australian Broker Online.
This follows news that <a target="_blank" href="/news">more than $4 billion in home loans was processed last month by AFG</a>, Australia’s largest mortgage broker – the first time its national 1,900 brokers have collectively broken through the $4 billion mark.
The $4,057 million figure is 12% higher than the $3,624 million processed the month before, which was itself a record. The October 2013 figure is 30% higher than October last year, and 61% higher than October 2011, showing how far the mortgage market, and broader economy, has recovered over the past two years.
Aussie chairman and founder, John Symond, says the retail result is a standout, as Aussie only established a substantial retail arm following the acquisition of Wizard Home Loans in 2009.
“This result is due to the hard work of the entire Aussie Group and demonstrates that volumes are returning to a more healthy market condition as buyers take advantage of low interest rates,” he said.
On the back of the growth, Aussie is on the expansion trail with a recruitment drive for former real estate and finance executives to become mobile brokers and franchisees of new stores.
“We’ve seen substantial growth across our three distribution channels and are keen to find new brokers and franchisees to join our successful and winning team”, Symond said.
Aussie’s total loan portfolio is worth $57 billion, including aggregator nMB, which was acquired by Aussie in 2012.
“All three of our distribution channels are firing and we see no reason for our growth to slow, as interest rates continue to bump along the bottom and our operations are becoming more efficient and effective in servicing our new and existing customers.”
Meanwhile, mortgage delinquency rates in excess of 30 days in the Australian prime residential market dropped to 1.35% in August, down from 1.39% in July, according to Moody’s Investors Service’s Global Structured Finance Collateral Performance Review.
However, the August figure is up from the same time last year (1.24%), but analysts remain optimistic, says Australian Broker Online.
“Looking ahead, we expect the performance trends witnessed to date in 2013 to continue with stable delinquencies, underpinned by expected GDP growth of 2.0% to 3.0%, the current low interest rate environment, and a steady unemployment rate of 5.0% to 6.0%” says Jennifer Wu, vice president and senior credit officer at Moody’s.
The report says Australian prime 60-day-plus arrears in August, at 0.76%, also compare favourably to all economies covered in the report, except for Japan’s (0.29%).  
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NAB bring forward first RBA cut to February 2025

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