Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Joel Robinson

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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>
That annoying Coles jingle “Down, down, prices are down” (was there ever more reason to shop at Woolworths?) could easily be applied to the outlook for the cash rate in 2013 with economists revising their forecasts in expectation of further rate cuts over the course of the next 12 months.
The key questions remain how many more rate cuts there are likely to be in the current cycle and perhaps more importantly, if they will have any impact on buying intentions of key market segments like first-home buyers and upgraders.
Certainly rate cuts will be welcomed by the generally financially better off investor market, where activity already appears to be on the rise based on October housing finance figures from the ABS.
These showed a 5.5% rise in the value of fixed-rate investor home loans over the month of October, compared with 0.2% decline in the value of owner-occupier mortgages.
An improvement in the new housing market is also expected, with Westpac chief economist Bill Evans noting that residential construction sector has “turned the corner and will be supported by recent lower interest rates, a shift which has greatly enhanced housing affordability” as well as from the  $15,000 first-home buyer handouts for those buying or building a new home in NSW and Queensland.
Evans quotes ABS construction figures that show that new dwelling construction advanced by 3.7% in the September quarter, partially reversing a 7% decline over the previous five quarters.
In addition, he points to the October Westpac- Melbourne Institute consumer sentiment index, where the ‘time to buy a dwelling’ sub-index showed a very positive response rising to the highest level since late 2009.
“This suggests that a housing recovery is locked-in for 2013. However, we expect the upswing in activity to be relatively gradual to emerge and that the cycle will be restrained by historical standards. The main constraint is the high starting point for household debt. Our forecast is for new dwelling construction to rise by 4.5% through 2013 and by 5.0% through 2014,” he says.
However, the evidence of a recovery is less certain for established housing, which makes up the bulk of the Australian housing market.
Concerns remain about the fragile confidence of Australian consumers, with the November Westpac consumer index recording a drop in confidence to levels last seen before the RBA began cutting the cash rate in November last year, though mortgage holder confidence rose 4.4%.
The key take-home message from the November index were concerns about the <a href="https://www.propertyobserver.com.au/economy/households-growing-concern-about-job-market-point-to-further-rate-cuts-westpac/2012121358456?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=latestnews" target="_blank">economy and job security are upper-most in the minds of consumers</a>, something a rate cut won't easily fix.
Despite 175 basis points being trimmed from the cash rate since November 2011, consumer confidence has not improved, with interest rate cuts appearing to lose their potency, a point observed by Laing+Simmons general manager Leanne Pilkington who, following the December rate cut, said they were no longer having any meaningful impact on <a href="/news">housing market activity</a>.
For the RBA, the focus will be on the job market and the non-mining sectors of the economy, including housing, taking up the slack with the 2014 mining investment peak now “confirmed”.
“Labour demand had softened, which pointed to only modest employment growth in coming months,” was arguable the key sentence in the December minutes, along with the RBA’s note that the “inflation outlook still afforded the board some scope to provide additional support to demand”.
ANZ has revised its estimates and is now tipping a further 100 basis points to be shaved off the cash rate over 2013, principally due to the slowdown in mining investment and an expected slow pick-up in non-mining sectors.
This would take the cash rate to an unprecedented 52 year low of 2% and could result in introductory variable loans being offered at around 4.4% (currently the cheapest variable loan offerings start from about 5.2%) assuming lenders pass on about 80 basis points to borrowers.
Standard variable mortgage rates would fall to around 5.6%, while the three-year fixed rate would fall well below 5%.
AMP Capital chief economist Shane Oliver is tipping at least two more rate cuts next year (in February and April), taking the cash rate to 2.5%, but warns that the cash rate could fall below 2% if the recovery in key non-mining sectors like retail, housing and tourism is slower to eventuate.
According to Oliver, in the current environment “of household and business caution post-GFC” the neutral standard variable rate has likely fallen to around 6.75%.
“In the last two easing cycles the mortgage rate had to fall to around 6.05% in 2002 and to 5.75% in 2009.
“Given the fall in the likely neutral level for mortgage rates and the current headwinds coming from the strong Australian dollar and fiscal tightening, mortgage rates will at least need to fall to these lows.
“Given ongoing issues with bank funding, to achieve a circa 6% mortgage rate the cash rate will need to fall to around 2.5%,” he says.
Oliver is quite bullish on the impact that lower rates will have on the housing market.
“Based on the assumption that the RBA cuts interest rates further and the global economy stabilizes then Australian economic growth should pick up by the end of next year.
“One should not underestimate the boost lower mortgage rates will ultimately provide. A fall in mortgage rates to 6% from the 2011 high of around 7.8% is equivalent to around $4500 pa in interest savings on a $300,000 mortgage. Ultimately some of that will be spent.
The key question remains though if lower interest rates will have enough of an impact on the housing market to spur a pick-up in activity.
Westpac’s Bill Evans anticipates one more rate cut on February 5 when the RBA next meets, but tellingly adds that “evidence to date is that low rates are not achieving traction with the hearts and minds of households or business”.
But he says the RBA is unlikely to concede that its primary policy instrument is ineffective.
However if the cash rate does fall to 2% and bank mortgage rates follow downwards but home buyers stay away, the uncomfortable question for the RBA and economists will be: where to next?
</body></html>

lschlesinger-FZcF9M3vE6

Down, down, interest rates going down in 2013, but will they make a difference?

<html><body>
An interest rate cut always sparks discussions about whether a borrower should refinance their home loan.
There is a lot of commentary after the RBA lowers the cash rate on whether home loan providers will pass on the full rate cut and how you might be able to get a better deal elsewhere. Whilst it is prudent to always know the interest rates on your home loan and that it is competitive to the market, the act of refinancing to continually chase a better rate can potentially be as damaging as it can be a benefit. If by refinancing you can clearly identify the immediate and long-terms benefits, then you owe it to yourself and your family to do so. The important thing is to be able to identify the benefits. One of the aspects of refinancing that tends to get over looked is the term of the loan. Let me explain. If you borrow $300,000 over a 30-year term at 6%, then your monthly repayments will be approximately $1,789.70 per month. By sticking to these repayments after three years your outstanding balance will be $288,252. If you are then tempted to refinance at a rate of say 5.7% and refinance the $288,252 and your loan is be written over 30 years and the monthly repayment will be $1,673.02pm. This will provide you with a nice saving of $116.68 a month, which could be a short-term benefit. However, on closer examination your home loan may now run 33 years. Let’s see how the short-term saving are reflected over time. Original loan – $300,000
30 years at $1,789.70pm  - $644,292
 
Refinance balance $288,252 loan after 3 years 
3 years at $1,789.70pm     - $64,429 30 years at $1,673.02pm   - $602,287                                                        - $666,716
By refinancing you could end up paying a further $22,424 over the life of the loan. There are a couple of important points to note when you are looking to refinance, and don’t be afraid to ask your home loan manager some questions.
<ol>
<li>What are the short term benefits and savings in refinancing?</li>
<li>How will that impact your loan in the long term?</li>
<li>Does the loan have to be written over 30 years?</li>
<li>If you continue to make the same repayments as you are now with a lower interest rate what impact will that have on the term of the loan</li>
</ol>There are some great home loan calculators you can play around with to allow you to obtain a greater insight into the short- and long-term benefits of refinancing Here is a link to the intouch –<a target="_blank" href="https://www.intouchhomeloans.com.au/calculatorsV2/remainingbalance">Remaining Balance Calculator</a> 
Paul Ryan is the founder and CEO of <a target="_blank" href="https://www.1800intouch.com.au/">intouch Finance and Property</a>.
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pryan-PBBWBcF6VT

When refinancing, borrowers often overlook the term of the loan

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The last few months of 2012 were noticeable for the manoeuvrings of arguable the three most recognisable mortgage broking brands: Aussie, Mortgage Choice and newish kid on the block, Yellow Brick Road.
All three franchise groups have taken steps to shore up their revenue-generating capabilities in what is likely to a challenging 2013 for mortgage lending and the housing market.
Each brand has adopted a different growth strategy, but the ultimate objective is the same – grow market share, increase revenues and improve profitability. The most recent media attention has been focused on John Symond selling the majority of <a href="/news">his Aussie Home Loans business to the Commonwealth Bank</a>.
Should the ACCC wave the chequered flag, Australia's biggest home lender will go from minority shareholder (33%) to owning 80% of Aussie Home Loans with the right to acquire all of the business at a later stage, should the bank deem it prudent.
It certainly is a prudent move from John Symond (apart from increasing his already substantial personal wealth), who will brush away criticisms that the once bank-bashing battler Aussie brand is now bank-owned.
Having re-positioned Aussie as a mortgage broker in 2002 rather than primarily as a non-bank lender prior to the GFC funding freeze (though it still offers Aussie-branded loans) the investment by the Commonwealth Bank  – said to be around $160 million –will ensure Aussie can continue to grow its retail stores, mortgage broker numbers and brand.
"Our feeling is it is a bigger, better Aussie with more choice and services for consumers, and that has to be good for competition,” he told Property Observer's sister publication <a href="https://www.propertyobserver.com.au/industry-news/aussie-john-symond-explains-sale-to-cba/2012121958587?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">SmartCompany.</a>
Symond’s former non-bank Wizard rival Mark Bouris has also taken a number of decisive steps in recent months aimed at ensuring his fast-expanding Yellow Brick Road franchise business has the funding it needs to provide competitive home loans and can generate enough leads to keep its 140 or so franchise stores busy and profitable.
The well-connected Bouris tied up a wholesale funding deal with <a href="/news">Macquarie Bank in November</a>, (which is itself ramping up its mortgage lending) and this month signed a reciprocal referral agreement with <a href="https://www.propertyobserver.com.au/industry-news/yellow-brick-road-and-run-property-form-property-and-financial-services-referral-alliance/2012121758542" target="_blank">property management group RUN Property</a>. Under the agreement Yellow Brick Road franchisees will offer their home loan and wealth management products and services to RUN’s 40,000 client base, many of whom are property investors.
Macquarie Group, of which Macquarie Bank is a subsidiary, cemented its ties with Yellow Brick Road by acquiring an 8.3% shareholding just ahead of the Christmas break with Yellow Brick Road strategic adviser and Australian Financial Review columnist Christopher Joye investing $1 million through Coolabah Ventures business entity.
Business Spectator's Stephen Bartholomeusz points out that in a twist of irony, Macquarie was the bank that originally funded John Symond's push into mortgage lending and is now doing something similar with his long-time rival.
 
<hr class="system-pagebreak">
 
Mortgage Choice may not have sought or garnered the headlines that Bouris and Symond have managed, but the ASX-listed franchise has also been re-jigging its business model and building on its strategy of diversifying its offering.
In December, as it celebrated its 20th anniversary, Mortgage Choice opening its first financial planning franchises in Sydney and another one in Brisbane.
The focus will be on providing risk insurance products – a natural fit to its home loan business – as well as superannuation and investment advice.
Mortgage Choice aims to have 10 financial planning stores up and running as part of a “soft launch” with a full roll-out planned from July 2013.
The franchise has ambitious plans for its financial planning business.
Looking ahead over the next two decades, Mortgage Choice CEO Michael Russell says the company has plans to “revolutionise the financial planning industry in the same way it did the home loan business”.
“We have put in place the solid foundations needed to successfully transition from a home loan specialist into the full financial services provider our customers have been asking for,” he adds.
These developments are good news for shareholders in these three businesses, but smaller mortgage broking groups could find the going a lot tougher, with further consolidation activity likely in the coming months.
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Mortgage broking big brands position themselves for challenging 2013 with diverse strategies

<html><body>
The Commonwealth Bank is set to acquire 80% of John Symond's Aussie Home Loans mortgage broking business with the right to subsequently move to 100% ownership.
The bank increasing its stake in Aussie from the current 33% (acquired in August 2008) is subject to it obtaining informal clearance from the Australian Competition and Consumer Commission (ACCC).
John Symond will remain as executive chairman and Aussie will continue to operate as a standalone mortgage broker and financial services provider, said the Commonwealth Bank in a statement.
“We recognise the strength and reputation of the Aussie brand and name in the Australian mortgage market and also the importance of broker distribution of home loans and other financial products," said Commonwealth Bank group executive Rob Jesudason.
Jesudason says that for Aussie, it will be "business as usual as it continues to provide a full range of services to brokers and lenders in the way it always has".
The financial terms of the acquisition are confidential, however the transaction is not material to the Commonwealth Bank.
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Commonwealth Bank lifts stake in Aussie Home Loans to 80%

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ANZ is forecasting the Reserve Bank to cut the cash rate by a further 100 basis points over the course of 2013 to a rate of just 2%.
This would be the lowest the cash rate has been by some margin based on <a href="/news">RBA data going back to 1959</a>. The previous low, based on RBA proxy data (official cash rate settings began in August 1990) was 2.89% in January 1960.
Last week <a target="_blank" href="https://www.propertyobserver.com.au/residential/residential-property-prices-to-rise-5-in-2013-but-shares-a-better-bet-than-property-shane-oliver/2012121258437">AMP Capital chief economist Shane Oliver</a> forecast the cash rate to fall 2.5% in the first half of 2013, but said it could fall below 2% if there is slower than expected recovery in the non-mining sectors of the economy such as housing and retailing.
"Due to the further sharp weakening in mining business conditions in recent months, the tepid improvement in the non-mining sector, the deterioration in job advertising trends and the strong Australian dollar, we now expect a further 1 percentage point cut in the cash rate over the course of 2013," says ANZ as part of Australian Monthly Chartbook released today.
"This will help limit the prospective rise in the unemployment rate that job advertising is signalling. If realised, such rate moves will provide significant further support to the non-mining sectors, including the housing market."
In the latest chartbook, ANZ says the key issue for markets and policy makers is whether the weakest sectors of the economy (e.g. retail,housing, manufacturing and non-residential investment) strengthen sufficiently to offset the anticipated slowing in mining investment.
"The RBA’s two monetary easings in recent months, suggests the central bank wants some further insurance on this front. The related policy question is what further should (and can) be done if non-mining activity does not strengthen sufficiently. Backing away from the delivery of a budget surplus would be a start, while the RBA could consider moves to offset some of the negative effects of the strong flow of capital into Australia, thereby taking some pressure off the high Australian dollar," says ANZ.
The bank also notes that the RBA recently downgraded its mining investment forecast for 2012-13 to a little above 8% of GDP from around 9% of GDP.
"While this downgrade was substantial, the latest capex data suggest this forecast is now a ‘best case’ scenario with the 'low' CAPEX estimate around half a percentage point of GDP lower.
"This creates therisk that mining investment may now peak at an even lower level than previously forecast by the RBA,meaning that non-mining activity needs to pick up more sharply than before to maintain reasonable growth."
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Cash rate to fall 100 basis points to 2% in 2013: ANZ

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In its most simplistic form, negative gearing for investment housing allows investors to deduct their losses against their personal taxable income.  These losses may occur when the investor incurs costs such as interest on a home loan as well as maintenance and other small expenses on an investment property. However, it is important to note that negative gearing is not unique to the property asset class; it also applies to businesses and shares in Australia.
The most important thing to realise about asset negative gearing is that it is fundamentally offsetting a loss.  Although you can claim that loss on your tax return, the investor must carry the cost of that loss throughout the year.  Ultimately, when investing, most purchasers would be hoping that rental rates increase over time and result in the asset moving from a loss-making one to an income-producing one.
It is also important to note that between September 1985 and September 1987, negative gearing laws were changed.  The government quarantined negative gearing interest expenses on new transactions.  As a result, investors could only claim interest expenses against rental income, not other income.
Given that negative gearing provides a benefit to investors, we look at the impact these changes had on the investment market over the two-year period.  The first component is the impact the changes had on the rental market.
According to the rental component of CPI data, rents across the capital cities rose by 21.8% over the two years to September 1987 (the period during which negative gearing laws were changed).  The increase in rents was most pronounced over the period in Sydney (26.1%) and Perth (31.1%).  As a comparison, over the two years to September 1985, rental costs rose by a lower 17%.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/rpdec17.gif"><img src="/images/stories/2012/12/rpdec17thumb.gif"></a>
The data clearly shows that rental growth was present over this period and it was greater than it was over the two-year period directly preceding it (The above chart shows the period for which the negative gearing rules were changed and are bolded black).  Here you can see that rental growth was well above average, particularly recent averages, but it was not unprecedented, with rents growing by a greater amount on an annual basis in late 1982 and early 1983.
Another important determining factor is the demand from investors over this period.  Unfortunately the Australian Bureau of Statistics does not provide information on the number of loans to investors; rather it provides the total value.  The total value of investment finance commitments in September 1987 was 41.5% higher than in September 1985.  These figures seem to suggest that at that time there was no weakness in demand for investment housing, however, a clearer outcome would be apparent based on the number of loans rather than the value.
The reason why negative gearing was reinstated in September 1987 was that it was proclaimed that rents rose sharply on the back of a fall in housing market investment.  However, it doesn’t look as if investment in the housing market dried up throughout this period. Rents clearly did rise quite sharply throughout, as demonstrated.


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Many in favour of removing negative gearing from property say that it should occur due to the fact that housing is an unproductive asset class.
My argument is that given that housing provides shelter, if investors don’t purchase these assets, it would then be the responsibility of the government to provide this shelter.  Ultimately, that would mean that anyone that pays taxes would be funding housing for those who can’t afford it themselves.
One of the arguments against negative gearing is that the tax deductions afforded to investors in the housing market reduces government revenue.  However, if investors did not provide shelter to those who can’t provide it to themselves, government revenue would already be reduced due to the fact that this responsibility would fall on the government.
If we look at the recent Australian Bureau of Statistics (ABS) dwelling approvals data, it is interesting to see just how much of the new housing supply is created by the private sector as opposed to the public (government) sector.  According to the ABS dwelling approvals series, which began in July 1983, between July 1983 and October 2012, 4,355,266 dwelling approvals have been given to the private sector compared to just 228,843 to the public sector.  Over the last 29 years (give or take a few months), public housing approvals have accounted for just 5% of all dwelling approvals.  This is less than 8,000 approvals by the public sector each year!
Over the 12 months to October 2012, 145,515 dwellings approvals were granted to the private sector (98.6%) compared with just 2,065 to the public sector (1.4%).
The most recent census data shows us that of those homes occupied, 29.6% are rented (investment properties).  Based on this data, if we assume that without the private sector building homes for investment purposes, the public sector would have to account for 29.6% of all dwelling approvals to cover those in rental accommodation.  Over the past 12 months this would have equated to 43,684 dwelling approvals.  If we also consider that the median home price across Australia as at October 2012 was $386,000, and if the government had to buy the land and build 43,684 homes, this would cost the Government of the day $16,861,900,480 based on the number of approvals and the median home price.
Of course this is a rather simplistic calculation and if the government were to build homes on its own land it would cost less, as that figure includes land and building.  Also, it is unlikely that private investment in residential housing would cease without negative gearing but I would expect that it would fall.
The most recent taxation statistics data shows that over the 2009-10 financial year, $4.81 billion in net rental deductions were claimed by taxpayers.
<img src="/images/stories/2012/12/rpdec172.gif" width="470" height="185" alt="rpdec172">
In order for the government to break even to allowable deductibles from tax returns they would have to be building those 43,684 homes at a cost of $110,100.  Based on the current median home price across the country at $386,000, they would have only been able to build 12,461 homes over the past 12 months or 8.4% of the total building approvals over the past year.  It should be noted that not all new builds are for investment purposes but if we assume that 29.6% are there is a significant shortfall.
When you look at these figures it is obvious why negative gearing is unlikely to be removed.  Whether the removal of negative gearing impacted investment or not, and whether it lead to an increase in rents is a secondary concern relative to how much it would cost the government to supply public housing for the almost 30% of Australians that don’t own their own home.
These figures are not to suggest that if in the case negative gearing was removed, there would be no investors in the market however, the appeal of negative gearing is part of what attracts many investors to the market.  Without negative gearing it is likely that there would be fewer investors and therefore less private developers delivering new homes coupled with a greater need for the public sector to provide housing.  The flow on effect may also be that there would likely be lower demand for housing credit.  Although some proclaim removing negative gearing would cause house prices to fall, I would expect that new housing supply would be even tighter as developer’s struggle to achieve pre-sales for new development, this may in-turn force prices higher than they otherwise would be.
By looking into the figures in more detail, it makes good economic sense for the government to allow housing investors to negatively gear their properties so that the significantly greater cost of providing social housing is not borne by the Government and ultimately the Australian taxpayer.
Cameron Kusher is senior research analyst at <a target="_blank" href="https://www.myrp.com.au">RP Data</a>.
 
 
 
 
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Negative gearing for property investors makes good economic sense: Cameron Kusher

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The ANZ Banking Group has followed its big bank rivals and lowered its standard variable home loan rates by 0.2 percentage points.
The bank announced today (Friday) that it would lower its standard variable home loan rates effective December 21, 2012.
The bank makes its rate decision on the second Friday of the month.
ANZ’s new standard variable mortgage rate will be 6.4%pa (6.5%pa comparison rate) with the 0.2-percentage-point reduction to save variable mortgage customers about $10 per week for the average home loan of $250,000.
The Reserve Bank of Australia cut the official cash rate by 0.25 percentage points on December 4.
It has been estimated the big banks pocket more than $6 million profit every day they don't pass on the full 25-point rate cut to home borrowers.
“This month we assessed a wide range of factors in reaching our decision including the impact of the lower cash rate on domestic funding sources, continuing competition for deposits, the international funding environment and our competitive position,” ANZ chief executive Australia Philip Chronican said.
“We believe the decision to lower our variable mortgage rate by 0.20 percentage points is the right one for our customers providing a competitive mortgage rate while also recognising the significant uncertainty associated with the fiscal situation in the United States and the political situation in Europe.”
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ANZ falls into line with 20bps cut, but takes the profit

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Negative gearing has worsened the housing crisis and cost taxpayers billions of dollars: Philip Soos
Few Australian housing policies are more <a target="_blank" href="https://www.prosper.org.au/wp-content/uploads/2012/09/Philip_Soos_Written_Off_Negative_Gearing.pdf">contentious than negative gearing</a>. Despite the publicity it has received and its popularity with government and property investors, little analysis of negative gearing can be found within easy reach, with much of it accessible only in academic journals. Only an occasional fragment is found in the mainstream media.
Australia’s policy on negative gearing is considered a sacred cow by investors and politicians, with <a target="_blank" href="https://news.domain.com.au/domain/home-investor-centre/blogs/domain-investor-centre-blog/what-housing-policy-20120621-20pcl">Prime Minister Julia Gillard</a>, <a target="_blank" href="https://www.theaustralian.com.au/national-affairs/treasury/wayne-swan-stands-by-negative-gearing/story-fn59nsif-1226321644363">Treasurer Wayne Swan</a> and <a target="_blank" href="https://www.couriermail.com.au/news/breaking-news/housing-crisis-negative-gearing-will-stay/story-e6freono-1226462610490">Federal Housing and Homelessness Minister Brendan O'Connor</a> ruling out changes to this policy. The reason for this obstinacy is that negative gearing allows a property investor to deduct losses against the investor’s personal income of the investor at their marginal tax rate (MTR), a tax minimisation strategy adopted by 1,110,922 taxpayers who vote. Property is run at a net loss when interest payments and property-related expenses like <a target="_blank" href="https://www.ato.gov.au/content/downloads/IND00270214N17290611.pdf">repairs and maintenance</a> exceed rental income.
The strong Australian economy has not experienced a recession since the early 1990s. This along with reduced personal tax burdens, real rising incomes, extensive property<a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=hsaf_ctte/report/report.pdf">subsidies</a> and <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=hsaf_ctte/report/report.pdf">tax breaks</a>, and rapid increases in property values, delivered an economic environment conducive to negative gearing. From 1996 to 2010, housing prices surged by 130%, adjusted for inflation and quality.
The present <a target="_blank" href="https://housingstressed.org.au/wp-content/uploads/2011/09/Australias_Broken_Housing_System.pdf">housing and rental affordability crisis</a> is placing tremendous <a target="_blank" href="https://housingstressed.org.au/wp-content/uploads/2011/10/Housing-costs-through-the-roof-Final-Report.pdf">financial stress</a> on many Australians as <a target="_blank" href="https://www.rba.gov.au/speeches/2008/images/sp-so-270308-graph1.gif">housing and rental prices have outpaced wages</a>, and provided the spark for the public to question the validity of subsidising investors, whether they choose to gamble on making a return by selling property at a higher price or eventually becoming cash flow positive when rents rise to exceed outgoings.
Despite the fact that negative gearing has existed for a long time, much assertion but surprisingly little evidence has been made to justify this policy across all classes of investment, whether it be shares, business, or property investment. The supporters of negative gearing provide negligible evidence to show that is it a sound policy.
Deductibility and tax minimisation under negative gearing
It is common sense that both businesses and investors should be allowed to deduct the costs directly incurred in making an income, but labour is unable to do so. A salaried employee incurs substantial costs in the course of earning a wage (for instance, accommodation, travelling to and from the workplace, and childcare) but government policy bars deduction of these costs against wages.
There is a double standard in operation here. From a distributional or equity perspective, this policy is biased towards the <a target="_blank" href="https://taxreview.treasury.gov.au/content/downloads/report/Architecture_of_Australias_Tax_and_Transfer_System_Revised.pdf">wealthy</a>, as business and investment capital <a target="_blank" href="https://www.melbourneinstitute.com/downloads/working_paper_series/wp2004n12.pdf">ownership</a>is concentrated into this class, which relies proportionately less upon wages.
The disparity between wage earners and investors is exacerbated when negative gearing is considered. The net income loss from an investment property reduces the investor’s personal tax liability, even though that loss was generated elsewhere. Earning a wage and earning income from an investment are two separate activities and should be treated as such. Business commentator Alan Kohler <a target="_blank" href="https://www.propertyobserver.com.au/https://www.smh.com.au/articles/2004/06/28/1088392603764">accurately summarised</a> the inconsistency between investment and employment:
Five years ago treasurer Peter Costello told Australians: “Work for a living and we’ll tax you at close to 50 cents in the dollar; speculate and we'll only take 25 cents. Not only that but, as a special deal – while stocks last – we’ll pay half your speculating costs.”
To sum up this line of reasoning, investors are unduly advantaged by the present taxation arrangements relative to labor. Investment capital is overwhelmingly concentrated in the wealthiest households, who deduct investments costs against income generated, have the highest personal incomes and thus MTRs, can deduct investment losses against their personal tax liability (negative gearing), can carry forward losses and lower their effective MTRs.
Clearly, the tax system is biased towards the rich in terms of cost deduction and tax liability minimisation. Some of this bias can be reduced by maintaining consistency: labour should be allowed to deduct costs against wages but disallow negative gearing for investors.
 Increasing the rental stock and lowering rents
This is the <a target="_blank" href="https://media.hia.com.au/enews/industryupdate/iss3/media/Negative_Gearing_Feb11.pdf">primary argument in favour of negative gearing</a>, that it provides an incentive to investors to purchase property for rent, thus increasing the supply of rental properties as a proportion of the total housing stock. As the reasoning goes, negative gearing holds rental prices down, benefitting tenants.
The evidence shows otherwise: <a target="_blank" href="https://www.macrobusiness.com.au/2011/04/negative-gearing-on-the-nose/">92% of residential property investment</a> is for the purchase of existing dwellings rather than those newly constructed, meaning that former owner-occupiers and tenants have to purchase or rent elsewhere, respectively, thus resulting in little to no net increase in the supply of rental dwellings.
In the long term, it makes little sense for the supply of rental properties to increase compared to the total residential stock unless there is a profound upward swing in housing prices, with investors spurred into the market on expectations of making a substantial profit through realising capital gains upon sale. Accordingly, there is little incentive when<a target="_blank" href="https://debtdeflation.com/blogs/wp-content/uploads/2010/09/KeenCLSAReportHandOfGov.pdf">long-term data</a> from Australia and other countries shows that housing prices track inflation, despite numerous and ongoing booms and busts.
Negative gearing is also <a target="_blank" href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/au/journals/DeakinLRev/2002/17">badly targeted</a> as high-income professionals and millionaires also allegedly receive lower rents along with those who do need it. If policymakers are concerned about rental affordability, there are other options to pursue. The obvious candidate is the Centrelink <a target="_blank" href="https://www.humanservices.gov.au/customer/services/centrelink/rent-assistance">Commonwealth Rent Assistance</a> (CRA) scheme, a subsidy provided to low-income tenants.
The effects of quarantining negative gearing in the 1980s
The <a target="_blank" href="https://www.theage.com.au/business/a-negative-impression-20110501-1e30g">favourite scare story</a> promulgated by the housing lobby is that when the Hawke/Keating government quarantined negative gearing during 1985-87, it caused rental prices to surge, quickly leading to its reinstatement. Fortunately, not only did the evidence refute this <a target="_blank" href="https://www.theage.com.au/business/time-to-change-the-unfair-rules-for-negative-gearing-20110424-1dsu6">urban myth</a>, it showed that negative gearing can be safely quarantined, if not abolished.
Rents rose in Perth and Sydney only, remained steady in Melbourne and Canberra, and fell in Brisbane, Adelaide, Hobart and Darwin. If the lobby was correct, quarantining should’ve adversely affected all capital city rental markets equally, not just two out of eight (even when factoring in a lagged response). There were <a target="_blank" href="https://www.asb.unsw.edu.au/research/publications/ejournaloftaxresearch/Documents/paper4_v3n1.pdf">confounding factors at work</a>: rising interest rates, introduction of capital gains tax and a stock market bubble.
Oddly enough, while the lobby claims that quarantining will increase rents, the inverse is not considered: rents have escalated from 2006 onwards while negative gearing was in effect. Perhaps they could claim that rents would’ve been higher otherwise, but this is an ad infinitum argument, that is, negative gearing is not generous enough, so by increasing the scope of tax deductibility, it can serve to further constrain rents.
How much does negative gearing cost?
ATO data provides an estimate of the cost of negative gearing: in 1993-94 it was $850 million, fluctuating around the $1 billion mark over the next several years. As investors piled into the market, the cost rapidly escalated to a peak of $3.8 billion in 2007-08 before falling to $2.9 billion in 2009-10. Over the last 17 years, negative gearing has cost taxpayers an inflation-adjusted $33.5 billion (2012 dollars).
What to do?
Policy outcomes can be enhanced by quarantining negative gearing deductions to the purchase of newly constructed properties but not for established properties. It would be even better to remove it, as it makes little sense to subsidise property investors, regardless of the reasons for investment when there are <a target="_blank" href="https://housingstressed.org.au/2012/08/30/aah-releases-a-4-point-plan-to-fix-our-housing-crisis/">better policies</a> for helping low-income tenants.
Also, the negative gearing debate presupposes the existence of income taxation, which has no justification when <a target="_blank" href="https://www.prosper.org.au/wp-content/uploads/2007/11/dwyer-tax-resources.pdf">evidence suggests that substantial amounts of tax revenue</a> can be raised from far more efficient bases. Income tax is one of <a target="_blank" href="https://www.taxreview.treasury.gov.au/content/html/Publications/papers/report/image/section_2-2.gif">125</a> <a target="_blank" href="https://taxreview.treasury.gov.au/content/html/commissioned_work/downloads/KPMG_Econtech_Efficiency%20of%20Taxes_Final_Report.pdf">burdensome taxes</a> that productive individuals and business bear the brunt of.
According to the property lobby, it’s <a target="_blank" href="https://www.smh.com.au/business/negative-gearing-is-safe-from-tax-review-treasurer-hints-20100326-r34t">too dangerous to reform negative gearing</a>, let alone abolish it. Fortunately, there’s no requirement for anyone to believe the lobby, given the weight of evidence against their assertions and the fact that they have enough conflicts of interest to fill a book.
Philip Soos is a researcher at the School of International and Political Studies at <a target="_blank" href="https://www.deakin.edu.au/">Deakin University.</a>
Property investor Melanie Stott responds on page 2
 
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Negatively geared property investors' contributions far exceed their tax breaks: Melanie Stott
 
OK, Philip Soos, I’ll bite.
Your article earlier this week on negative gearing has really ticked me off – and you can’t call me ‘the property lobby’ because I’m primarily a stay-at-home mum and a part-time journalist who used to run around after politicians for a living on the telly.
I’m a property investor too – thank goodness – but I should warn you that negative gearing on property investments all through my 20s certainly paved the way for me to spend the last seven or so years at home, raising two new little taxpayers. You’re right, what a dreadful policy, only benefiting “the rich”.
Who are these “rich” people?! Let’s find them and burn their houses down! They’re certainly the bad guys <a target="_blank" href="/news">in your article, Mr Soos.</a>
I could go on and on about the benefits of private investment in the property industry, despite your determination not to understand them. Try to think of it, if you would, as the original public-private partnership. Governments always have and always will need private citizens to invest in property, therefore providing a bigger rental pool for other private citizens. I hate to be all anti-progress about it, but there just isn’t a better way of doing it for a lazy $3 billion a year.
For this very large effort and ongoing commitment by the investors, there needs to be some sort of reward. People everywhere are great, but generally speaking in a business sense, people don’t do things for others for free.
The point of my response is not to get bogged down in policy debate. What I can tell you is what’s happening on the ground. Negative-gearing property investors are people, too. We’re workers, we’re mums and dads, we’re small business owners, and we’re taxpayers. We’re putting in the hard yards on the ground in the rental industry, and we’ve been doing it for years. Years and years.
I’ve renovated for profit every night and weekend for months, I’ve responded to tenant disasters in the middle of the night, I’ve picked up the pieces when good tenants go bad, I’ve experienced the best and worst of human nature as a self-managing lessor.
I’ve claimed losses, I’ve paid capital gains tax, I’ve put profits back into the economy and I’ve saved money to live off while our children are small. I’m also unlikely to need a pension in retirement –  here’s hoping, anyway. 
I’m far from a blight on society, Mr Soos, and I’m certainly not alone. As you’ve pointed out, there are well over a million property investors just like me. We’re a brave lot, and I firmly believe – no, I know, from experience – that our significant contribution outweighs our tax breaks.
Yes, some of us speculate, but many other taxpayers choose not to take on the associated risks and extra hard work. That’s their choice. That’s the difference.
By the way, your assertion that “a salaried employee” doesn’t get tax breaks associated with earning an income, is also wrong. Anyone who works or studies 20 hours or more per week gets 50% of their childcare costs back, paid quarterly, not annually in a tax return. I have no idea why you think “accommodation” is a legitimate work expense – it’s not. We all have to sleep somewhere, job to go to in the morning or not. That’s why it’s called a living expense.
Don’t get me started on your suggestion that perhaps negative gearing should only be applied to new property. Property investors are clever, but you won’t find many of us out and about on the weekends knocking up our own structures from scratch. Why would we want, as a nation, to hand a bigger break to the multinational building firms, which would no doubt whack a premium on top of their house-and-land or apartment package prices for investors, purely because they’d be the only products able to be negatively geared?
If you think there are any “millionaires” out there receiving low rents as a result of negative gearing, well, you’re wrong there, too. No property investor worth their salt sits down and works out the lowest rent they can charge based on what they’ll get back from negative gearing. It doesn’t work that way. It’s called market forces. I can ask $1,000 per week for a shack, but I won’t get it unless it’s comparable with other shacks on offer at the time. It’s unlikely there are any millionaire or high-income tenants paying less than market rent simply because the landlord is negative gearing.
And finally, a little more sense about the maths, please. Let’s all remember that tax refunds received as a result of negative gearing still represent a portion of the total losses on a property during a financial year. No one is investing in the hope of losing $20,000 per annum on a rental so they can get $10,000 (or less) back. They’re out of pocket by $10,000 on an investment!
Every property investor, big or small, is restricted by income. I can’t speak for the casino-owning Packers of the world, but I can confirm that while many mums and dads would like to own a whole street of rentals, most of us can’t – we couldn’t sustain the out-of-pocket repayments. Making it harder for us to be fairly small fish in the rental sea really doesn’t make sense, or good policy.
The aim of public policy should be to encourage private investment (and wealth creation for all), not whack it mercilessly and stomp on it until it’s shattered, and then wonder why government housing queues are getting longer.
I’m also not sure whether you realise that the perceived health of the property market helps determine that whole Reserve Bank interest rate decision each month? It’s pretty big. Screw with property and watch interest rates move, one way or another. With fairly limited options these days for capital growth, there’s never been a worse time to even think about dropping negative gearing.
Over a million of us would run a mile. 
Melanie Stott is a freelance journalist and regular contributor to <a href="https://www.hotspotting.com.au" target="_blank">The Ryder Report</a>. She also writes for Michael Matusik and works as a TV News producer in Brisbane. Melanie and her husband Andrew own <a href="https://www.paradiseatthepoint.com.au" target="_blank">Paradise at the Point</a>, the Gold Coast holiday house featured in 2012’s Big Brother series– and it’s positively geared.
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Room for Debate: Should negative gearing be abolished?

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The popularity of fixed-rate home loans is on the rise.
Around 22% of borrowers who arranged their loans through a Mortgage Choice broker in November chose a fixed-rate product, compared with a six-month average of 19.5%.
Currently, fixed home loan rates are offered at a significant discount to variable rate home loans.
Mortgage comparison website RateCity.com.au calculates the average three-year fixed rate at 5.54%, compared with a standard variable rate of 6.62% – a difference of 108 basis points.
At these rates, using the example of a $300,000 home loan over 25 years would mean a variable rate borrower would pay $2,048 per month while a fixed-rate borrower would pay $1,710 per month –a difference of $338.
These sorts of numbers may tempt borrowers to consider a fixed-rate home loan, but the fact that nearly 80% of borrowers still choose a variable rate home loan should be cause for caution and careful consideration.
As Mortgage Choice spokesperson Belinda Williamson points out, borrowers must carefully weigh up their options, as fixed rate loans have both “pros and cons”.
“Remember, the interest rate is not the only factor to consider, also compare any initial, recurring and break costs, the ability to make extra repayments and redraw, lender service and how long the loan will take to be approved,” she says.
It is worth stating the obvious benefit and potential shortcoming of a fixed rate home loan – that the interest rate is fixed.
If interest rates rise, fixed-rate borrowers are better off as their mortgage repayments remain unchanged, but if interest rates fall, borrowers receive none of the benefits of a lower interest rate – a situation that was illustrated by the estimated 125,000 borrowers who chose to fix their rate in 2008, just before the RBA began cutting the cash rate in big chunks.
As a result fixed-rate borrowers <a href="/news">circa September 2008</a> were paying annual interest rate of around 8.75%  on a three-year fixed loan, while variable borrowers' annual interest rates fell to as low as 5.75% by May 2009, with variable rates remaining below 8% in subsequent years.
The rate you pay, timing and the duration of your fixed-rate home loan are key factors in making a financially astute decision.
 
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While you may be able to secure a three-year fixed-rate home loan as low as 5.13% (the current refinancing fixed rate offered by UBank), borrowers may qualify for a packaged variable home loan with a rate discounts of 70 basis points (as offered by Westpac) negating much of the fixed-rate interest rate saving, while being able to benefit from all the flexibility and features of a variable rate loan.
Conservatively minded borrowers or those who want the ‘insurance’ of knowing their mortgage payments won’t change month-to-month may consider a fixed-rate mortgage a good option, but  should bear in mind  a number of restrictions that may apply.
Firstly, the government’s ban on mortgage exit fees introduced on July 1 last year, designed to make it easier for borrowers to switch mortgage providers, does not apply to fixed-rate mortgages.
Fees can run into the tens of thousands of dollars.
Lenders determine break fees based on a combination of factors: the interest rate you are locked into compared to the current market interest rate, the length of time that remains on your fixed-rate term and the loan amount you initially borrowed.
Financial products data provider Canstar estimates that the break costs on a $250,000 three-year fixed rate loan that still has two-and-a-half years to run would be around $10,300.
According to RateCity.com.au spokesperson Michelle Hutchison, other restrictions include that about half of fixed home loans don't allow for redraw facility, which is the ability to withdraw extra funds from the home loan that you added to the loan.
“This is compared to the majority (98%) of variable home loans offer redraw facility,” she says.
Another restriction is the ability to make additional repayments.
“While most fixed home loans allow for additional repayments, they usually come with restrictions on how much you can add each year during the fixed period. For instance, comparing all the three-year fixed home loans in RateCity's database, 60% of those that allow additional repayments have a limit averaging $15,000 per year,” says Hutchison.
In addition, there may be restrictions on paying the loan off early, with heavy penalties if you do so.
Borrowers also need to consider what happens when the fixed-rate term expires.
“Many borrowers may not realise that after the fixed period, your home loan reverts to a different variable home loan and it may not be the best variable rate they can receive," says Hutchison.
“It's a good idea to keep track of when your fixed period is coming to an end and use RateCity to compare home loans to make sure you get the best deal for your needs."
Fixed-rate home loans may also not have other features that come with variable rate loans, such an offset account, which reduces the interest rate on your mortgage based on the balance in this account.
Resi Mortgage CEO Lisa Montgomery advises borrowers to always read the fine print on their home loan contracts.
Borrowers can also hedge their bets, by splitting their loan with a portion of their borrowings on a fixed interest rate and another portion on a variable rate.
Splitting loans is popular at times when the direction of interest rates is uncertain.
Some lenders, such as non-bank lender eMoney, offers a lower variable rate if a borrower fixes 25% of their home loan.
 
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Fixed home loan interest rates are attractive, but beware the potential pitfalls and restrictions 

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The total number of owner-occupied housing finance commitments rose by just 0.1% over October in seasonally adjusted terms, according to new ABS figures.
This was well below market expectations of 3%, with Westpac forecasting the number of loans to owner-occupiers to rise by 3.4% in the month.
The principal cause of the poor monthly growth was poor take-up of loans commitments for the purchase of established dwellings, which fell 0.1% to 38,900.
Construction loans fell 0.3% to 4,903, while loans for the purchase of new dwellings lifted by 4.2% to 2,673.
Total loans to owner-occupiers totalled 46,477  up from an upwardly revised 46,425 in September.
On a state-by-state basis, finance to owner-occupiers increased in Queensland (1.3%), WA (1.3%) and SA (3.4%), but fell in NSW (-1.7%) and Victoria (-1.3%) partially reversed gains in September.
In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 18.7% in October 2012 from 19.4% in September 2012.
The average size of a first-home buyer loan fell $1,300 to $288,000.
The average loan size for all owner-occupied housing commitments fell $1,300 to $298,900 for the same period.
In value terms, housing finance rose by 1.8%  to $21.56 billion on a seasonally adjusted basis.
According to Westpac, the positives to come out of the October data was lending to existing owner-occupiers (upgraders) advanced 1% in the month, to be 8% higher over the year, while "investor finance, which can be volatile month to month, was up strongly, 5.5% in the month, following an 8.8% jump in Sep, to be 21% higher than a year". 
"Uptrends in lending to upgraders and investors provide confirmation that lower interest rates are providing a boost to the housing market," says Westpac. However, the bank notes that the October outcome was constrained by a dip in lending to first-home buyers (FHBs), down 2.8%, partially reversing a 4.2% rise in September. "The profile of lending to FHBs has been distorted by changes to incentive/stamp duty arrangements in some states.
"Finance to FHBs has jumped 15% since March, although is only 0.5% higher than October 2011. We anticipate that the uptrend in the FHB market evident since March will continue, as people respond to the marked improvement in housing affordability. However, this cycle is likely to be tempered by household's more prudent approach to taking on additional debt.," says Westpac.
According to JP Morgan economist Tom Kennedy, the fall in owner-occupier and first-home buyer loans suggests the RBA may need to cut the cash rate to further stimulate the housing sector  - one of the sectors the RBA is counting on to pick-up as mining investment peaks.
"The data today just reaffirms that there are numerous headwinds out there," he told AAP.
"That's another reason that really supports further rate cuts."
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