<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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

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The announcement of the September quarter Consumer Price Index brought with it a small wave of hope that official interest rates could now be cut by the Reserve Bank on Melbourne Cup Day.
The reason? Wednesday’s CPI came in at 2% for the year, which means the underlying inflation figure should still be at the "low" end of the 2 to 3% inflation target that the RBA operates to, and there is room to cut the cash rate before Christmas.
I’ve been looking at the numbers and talking with economists since the CPI announcement, and we can not assume the Reserve Bank will rush to reduce interest rates.
I’m happy to be proved wrong, however on the balance of probability I now believe the Reserve board is likely to leave interest rates where they are and wait for the December quarter CPI figures, which means the next rate movement would be in February 2013.
Here is my thinking.
The annual CPI of 2% represented a jump from the June quarter’s 1.2%. So, inflation is rising. In the breakdown of the September CPI, electricity rose 15.3%, and ‘gas and other household fuels’ rose 14.2%.
These are extraordinary rises, and I believe the RBA will want at least two quarters of price data on power and gas before deciding where they fit into underlying inflation.
Secondly, we can see rises in cost of living basics such as vegetables (up by more than 10%), housing (4.7%), education (6.1%) and health prices, which increased 7.2% in the year to September. These are direct household cost of living pressures, and the RBA will want to ensure its next move is the right one.
There’s another reason why I think the Reserve will hold interest rates over the holidays and wait for the December CPI: economists themselves have already backed away from predicting a November rate cut. Prior to the CPI announcement, 80% of polled economists predicted a Melbourne Cup Day rate cut. Now it’s 60%.
I know that debt-laden Australians who bought property before the GFC want every rate cut they can get. However, rather than living in hope, it’s better to understand the role of the Reserve Bank: it’s an independent agency charged with issuance of currency, the operation of the financial system, the integrity of the "payments" system and oversight of gold and foreign exchange reserves.
Its broader mission concerns prices, employment and general economic prosperity, which it does by setting the cash rate to meet a medium-term inflation target.”
It is setting the cost of money in order to keep Australia’s inflation rate inside the optimal target range of 2-3%.
I believe the Reserve wants a proper view of where some of the cost of living pressures are going, and it will wait until January 23 when the December CPI is released. It could be the most important number we read about in the next 12 months.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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mbouris-tauSvXGAM2

Next RBA rate movement likely to be February: Mark Bouris

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Land tax is a state-based tax, meaning it gets charged by the individual states; therefore the rules, conditions and land tax thresholds differ from state to state.
Generally the first property bought in most states will be below their land tax threshold, such as an apartment (unless it’s a really expensive property), and subsequent properties bought in the state will be added to the first for assessment purposes. Generally by the second or third property the total land value will be pushed above that Sstate’s land tax threshold.
To eliminate paying land tax completely one could simply buy a single property where the land value is below the threshold and the second in another state and so on, which means you start fresh with a new land tax threshold in each state. 
So, effectively<a href="https://www.propertyobserver.com.au/residential/four-reasons-you-should-consider-investing-in-property-interstate-ed-chan/2012101857271" target="_parent"> you could have eight properties without paying land tax.</a>
However having said that, it's not a wise investment principle to invest solely for tax reasons. Tax reasons should never drive your investment principles.
It should be part of the consideration, but never the only consideration as there other key factors to take into account.
For example, it may be land tax effective to invest in a particular state, but that state could be at the peak of its property cycle, which makes that a poor investment.
To get an estimate of what the land value is one can look at the Valuer-General notices attached to council rates.
Land tax is self-assessed. In most states you will not receive a land tax notice from the Office of State Revenue reminding you of your obligations, and it's up to you to voluntarily self assess and lodge a land tax return.
What happens if you don't lodge a land tax return?
Well, no one will know in most of the states; however if you are unlucky you may get found out in a random audit and or when you decide to sell the property the buyer will want land tax clearance before taking possession of the property because land tax liability is transferred with the sale of the property.
In that case you will need to back pay all the land tax owed plus penalties and interest. This could be quite significant.
So it's always best to lodge a land tax return, even if you are below the land tax threshold. Lodging a land tax return gets you registered in the system and you will receive a nil assessment notice each year which will avoid the situation where you were unaware that your land value one year had climbed above the land tax threshold and you were liable to pay land tax; the non payment attracts penalties, fines and interest.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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echan-hSGJw4wwC5

The best way for property investors to avoid paying land tax: Ed Chan

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There has been a great deal of movement in fixed rates over the last three months, and for some borrowers fixing has become the "new black".  It’s easy to understand why borrowers are being tempted, particularly with some three year rates sitting well below the 5.5% mark.
Generally speaking most borrowers are motivated to fix their loan balance for one of two reasons.  To create repayment certainty and stability, or, to beat the market at a rate that will be consistently lower that their standard variable for a fixed period.
And when fixing a rate, there is no denying that timing is everything.
Those looking to beat the market often wait until they can establish that fixed rates have reached their lowest point in the current cycle – but because rates can change very quickly, they often miss out.
Over time the fixed versus variable conundrum has continued to present a challenge to borrowers curious about whether fixing will deliver a cheaper result over time, and this is most prevalent when interest rates are in a downward cycle.
The majority of borrowers, however, are generally content to remain with their standard variable arrangement, thereby retaining all the flexibility and features a fully optioned loan delivers.
Even though the average standard variable rate of the big four banks is around 6.62%, most existing standard variable rate borrowers are sitting around 20 basis points either side of the 6% mark.  And with variable rates tipped to fall further, the temptation to lock in is growing.
This is where the split loan option of part fixed, part variable becomes the popular alternative, offering the flexibility of a variable loan with the payment certainty of the fixed arrangement.
This option is fast becoming the borrower preference over 100% fixed, with most lenders offering attractive fixed/variable combinations aimed at borrowers wanting the best of both worlds.
Over time, however, traditional fixed loan arrangements have become more flexible in their own right – with additional repayments allowed for most products.  But that being said, borrowers often overlook the additional criteria that applies to breaking fixed loans during the term.
It is therefore incredibly important that borrowers read all of the terms and conditions associated with the fixed loan arrangement. Because if, for example, there is any chance that the borrower may need to sell the property or break the loan while during term, he or she might be better off to remain on a variable arrangement, as those costs can be prohibitive.
In terms of what we see happening at the moment, the most popular fixed rate period still remains the three-year option. However shorter terms are also becoming a popular choice, given rates are on a downward trend.
Only during the last week, we have seen one-, three- and five-year rates stabilise with a slight increase in some bands, so I don't believe we can assume that fixed rates have bottomed out just yet –  this will only come as they stabilise.
My suggestion therefore is that if borrowers are looking for a better deal – whether it be fixed or a split arrangement – they may want to approach their lenders first to minimise their costs of refinancing, or do their research and find the right combination for them.
But remember, a good and efficient loan arrangement is not simply just based on having a low rate.  Features, flexibility, fees and the right guidance are just as important.  You want your rate to be competitive – but above all, you want your loan to work for you.
Lisa Montgomery is CEO of <a target="_blank" href="https://www.resi.com.au/">Resi Mortgage Corporation</a>
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lmontgomery-WVTjxSibz6

Timing is everything when it comes to fixing your mortgage

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Big four bank ANZ reported a strong rise in both annual profits and mortgage lending but has warned of a tougher operating environment moving forward with funding costs rising.
The bank reported a 6% rise in annual profits to $5.7 billion with its mortgage book growing by 7% from $170 billion to $182 billion – well above system growth of under 5%.
ANZ also reported a 12 basis point drop in net interest margins over the year to September 30 for its Australian business reflecting “increased funding costs in particular from deposits", as well as asset pricing pressure in its institutional banking division.
ANZ chief executive officer Mike Smith said its Australian retail banking division (which includes mortgage lending) had “performed well across all segments”
“With the global economy softening, it’s clear that the post-GFC lower growth business environment will be with us for the foreseeable future, as will the requirement to operate with higher levels of regulatory capital and higher funding and liquidity costs.
“Although the operating environment in 2013 looks more challenging with stronger headwinds in a number of areas, our unique growth strategy and the momentum we have in adapting to the new environment means we are well placed to deliver value and performance to shareholders in 2013,” he added.
The quality of ANZ’s mortgage book remained strong with mortgage delinquencies continuing to decline across all bands (30, 60 and 90 days in arrears) “however softening economic conditions, particularly in regional Australia, drove increased provision charges”.
The bank grew its deposits base by 12% over the year with customer funding comprises 61% of total funding, with ANZ reducing its reliance on wholesale funding.
“ANZ continues to have the lowest wholesale funding requirement of its domestic peers," said Smith.
Shareholders will receive a total dividend for 2012 of $1.45 per share.
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lschlesinger-FZcF9M3vE6

ANZ reports strong mortgage growth and annual profits of $5.7 billion but warns of “stronger headwinds” in 2013

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The Reserve Bank is likely to cut the cash rate only once more – either in November or December – but that could be it for the current monetary policy easing cycle, according to HSBC chief economist Paul Bloxham.
Most economists (23 out of 27 polled by Bloomberg) are tipping a rate cut on Melbourne Cup Day.
Bloxham says the release of third-quarter CPI data shows that inflation is now trending up, giving the RBA “less room to move on rates”.
Examining yesterday's inflation data, Bloxham says it indicates that inflation has passed the low point.
Bloxham says the ABS data shows that Australia inflation jumped in the third quarter, “partly due to the introduction of the carbon tax which boosted the headline figure to 2% year-on-year” above HSBC forecasts of 1.9% and market expectations of 1.6%.
“Looking at the various measures, it appears inflation may have passed its trough and while we still expect another RBA cut by year-end, we think this could be the last this easing cycle.”
“The RBA has said it will look through the third quarter result, much like it did when the GST was introduced in 2000.
“However, with the prospects of inflation already on the up and with the RBA already having cut rates by 150 basis points we think that they may have less room to move on rates now,” says Bloxham.
Bloxham also points that in annual terms, inflationary pressures are strongest in the major categories of health (+7.2%), education (+6.1%) and housing (+4.7%), which was partly offset by declines in recreation and culture (-1.5%) and food and beverages (-1.1%).
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Rising inflation could mean just one more RBA rate cut: HSBC’s Paul Bloxham

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While many home buyers might be reluctant to pay lenders mortgage insurance (LMI) to achieve their property goals, it can be a useful tool in the current buyer’s market.
It’s not a black and white argument that LMI should always be avoided.
LMI insures your lender should you default on your home loan and is generally required if you borrow more than 80% of the value of a property. While it protects the lender if you stop making your mortgage payments, LMI also makes it possible for purchasers to buy a home with a deposit of less than 20%.
LMI involves paying a once-off fee to the lender, with the amount varying depending on the amount borrowed and the size of your deposit. You can pay the fee up-front or add it to the total loan amount.
While it’s generally preferable to have a 20% deposit for the purchase of a property, it’s not always possible to do so, particularly for first-home buyers.
It may be that LMI provides people with the ability to capitalise on some of the good buying opportunities that are currently available and get their first foot on the property ladder, rather than having to spend several more years renting and trying to save.
The key is to ensure that if you do take out LMI that you’re buying well and are prepared to stay in the property long-term to benefit from capital growth.
Take the example of a couple looking to purchase a property valued at $400,000 that last sold for $450,000 several years ago but has dropped in price due to the declining market.
To date they have saved $40,000 – $40,000 short of the $80,000 they need to have a 20% deposit and avoid paying LMI.
They are currently paying $380 a week in rent and saving an additional $200 a week. Saving $200 a week would mean it would take them just under four years to save up the additional $40,000 to have the full 20% deposit.
If they looked to purchase this property now with their current $40,000 used for the deposit and associated buying costs it would mean that they would need to borrow 94% and pay an LMI premium of $11,000.
In that same time period (four years), having bought the house now, the $580 a week in rent and savings would have seen them build up $50,000 equity in their own home (assuming a property growth rate of 3% a year).
In this scenario, while they have incurred an LMI premium of $11,000, it has allowed them to build up equity in their own home of $50,000.
This is a financially positive outcome and also has allowed them to have the satisfaction and security of buying their own home – for a good price – which they can then leverage off in the coming years to further build their wealth.
If you’re unsure whether to buy now or perhaps wait longer to save more of a deposit, an experienced mortgage adviser will be able to run the calculations for you and give you some advice based on your individual situation.
It might be that in some instances it’s better to delay your property purchasing plans for a while longer rather than buying now and paying LMI.
Talk with your mortgage adviser as a priority so they can advise you on the best course of action.
Graeme Inglis is an adviser at <a target="_blank" href="https://www.smartline.com.au/">Smartline Home Loans Group</a>
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When you should pay lenders mortgage insurance

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NAB’s customer satisfaction rating lifted 0.7 percentage points to 80.3% in September to reach the highest score for a big four bank since Roy Morgan began researching customer attitudes to the banks in 1996.

The bank’s customer satisfaction rating has improved by 3.8 percentage points over the past 12 months to be the “clear market leader” among the big four banks.

However, NAB’s rating is due to the satisfaction of its non-home loan customers ( up 5.2 percentage points over the past 12 months), whereas its home loan customers had a decline in satisfaction of 1.4 percentage points over the same period – despite NAB maintaining its promise of offering the lowest standard variable rate of the major banks.

All the major banks improved their ratings over September as customer satisfaction with the banking sector as a whole improved for the third consecutive month to 79.4%.
Despite the positive trend shown by the big four banks, they still lag far behind the satisfaction levels of their smaller rivals, with an average satisfaction rating of 77.3% compared with 84.1%.
The best performers among the smaller banks were bankmecu (93.7%), Heritage Bank (90.7%), BankSA (88.7%) and Bendigo Bank (87.6%).
Over September, the Commonwealth Bank matched NAB with a 0.7 percentage point increase to 78.5%.

Westpac recorded the biggest monthly increase of 1 percentage point to reach 75.7% to rank third of the big four, with ANZ improving by 0.5 percentage points to a satisfaction rating of 74%.

Click to enlarge
<a href="/images/stories/2012/10/roymorganoct24.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/roymorganoct24thumb.jpg"></a>
Roy Morgan says the improvement in Westpac’s customer satisfaction rating was mainly due to an improvement in September in satisfaction among its home loan customers.

Home loan customers still remain less satisfied across all of the major banks compared with non-home loan customers, presumably due to the banks' policy of not passing on full rate cuts.

“Recent reductions in home loan rates should improve satisfaction levels among borrowers but this can also be impacted by any negative perceptions if the full rate drop is not being passed on,” notes Roy Morgan.

“Continued improvement in bank customers’ perception will depend largely on the big four avoiding any further negative publicity, as we have seen that Westpac, the CBA and most recently ANZ have all suffered major setbacks in customer satisfaction following negative market announcements,” says Norman Morris, industry communications director at Roy Morgan Research.

“The big four have arguably set their satisfaction target a little low by focusing almost exclusively on how they rank against each other rather than against their smaller competitors who are perceived as performing much better in terms of customer satisfaction and have considerable combined market strength.”

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NAB customer satisfaction rating reaches record high but home loan customers not any happier: Roy Morgan

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Community First Credit Union has joined the Greater Building Society by offering a one-year fixed home loan interest rate of 4.99% per annum effective today (October 24).
The credit union has cut its introductory one-year fixed home loan interest rate by 56 basis points, more than double the 25-point cut by the RBA on October 2.
Unlike the <a href="/news">Greater Building Society</a>, the 4.99% rate is not part of packaged rate offering, a point stressed by John Tancevski, chief executive officer of Community First.
“The best thing about this rate is that it is not part of a package with an annual fee," he says.
Tancevski says the credit union is able to offer the 4.99% rate because it is a "mutual organisation, owned by members, who also happen to be its customers".
Community First bills itself as the largest community based credit union and has been operating since 1959, with 11 branches in Sydney and on the central coast.
It has 76,000 members.
“Unlike our competitors, we don’t have the pressure to deliver large profits to pay dividends on shares to investors.  Our benefits are passed directly onto our members,” he says.
The credit union also offers a First Home Buyer Headstart loan, which provides a $2,000 cash bonus to first-home buyers who take out a Community First variable rate home loan.
Though NSW-based, Community First home loans are available to borrowers outside of the state.
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Community First Credit Union becomes second lender to offer sub-5% one-year fixed home loan

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There’s more money to be made selling home loans than flipping hamburgers, it seems.
Australian Financial Review columnists Christopher Joye has tweeted that the Commonwealth Bank, now has a greater market capitalisation than global brands like American Express and McDonald's, with the four major banks valued at a collective $300 billion.
<a href="https://twitter.com/cjoye" target="_blank"><img src="/images/stories/2012/10/joyetweet3.jpg"></a>
However, Joye believes Australian financial system would be safer and more stable with “eight medium-sized banks, which were individually non-essential to the overall economy, than the four too-big-to-fail behemoths we have today”.
Writing in the AFR today, Joye says the “majors’ too-big-to-fail features bequeath tremendous comparative advantages”.
“In banking, he with the lowest cost of funding wins via higher profits, greater market share, or both.
“Standard &amp; Poor’s lifts the majors’ credit ratings two notches higher purely because it believes taxpayers will bail them out during a crisis. No other Australian deposit-taker gets this rating relief.”
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Commonwealth Bank more valuable than McDonald's and American Express: Tweet of the day

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The Reserve Bank plans to introduce new reporting requirements for lenders that issue residential mortgage-backed securities (RMBS) to investors as the Australian securitisation market show more positive signs of a gradual recovery.
In his address to Australian Securitisation Forum in Sydney yesterday RBA assistant governor Guy Debelle said RMBS issuance in the year to date had totalled $10 billion.
“By way of comparison, in the second quarter of 2007, at its peak, issuance amounted to $25 billion,” he said.
The RMBS market was heavily used by non-bank lenders and other smaller lenders before the GFC to access cheap mortgage funding, with tranches of mortgages securitised and sold to both local and offshore investors.
But the RMBS market froze following the GFC as offshore investors demanded higher returns to compensate for the perceived higher risk, spooked by sub-prime crisis in the US.
Since then the Australian market has been recovering gradually with the help of the Australian Office of Financial Management, which has acted as a cornerstone investor on many transactions to reassure investors.
The graph below, presented by Debelle, shows how the market slumped from annual RMBS issuance of around $40 billion in 2007 to just over $10 billion in 2008, but has risen since then.
<img src="/images/stories/2012/10/rbaoct231.gif">


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Under the new draft quarterly reporting requirements, the RBA will require that “issuers provide the Reserve Bank and the broader public with more comprehensive and up-to-date information on the securities”.
The new information requirements cover both transaction-related data as well as information on the underlying assets, such as anonymised loan-level data.
Industry comment on the new requirements is been sought by the RBA until December 28, with a <a href="https://www.rba.gov.au/media-releases/2012/mr-12-31">full breakdown of the draft proposal provided on the RBA website</a>.
“When the templates are finalised, an implementation period will apply for RMBS to give issuers the time to develop the reporting systems necessary to comply with the new reporting requirements,” says the RBA.
Commenting on the initiative and the improvement in the market, Debelle said that in Australia, RMBS issuance in 2012 had recovered to the point “where new issues are replacing maturing issues so the stock outstanding is no longer declining”.
“This year we have seen positive signs in the Australian securitised market, particularly over the past several months," he added.
“First, despite the periodic bouts of turmoil in offshore markets, there has been a steady flow of new issues. Primary spreads have gradually tightened this year and a number of deals have been fully placed with external investors (that is, no tranche has been retained by the issuer), including junior tranches.
“More recently, several issues have been completed with little or no support from the AOFM due to strong private investor demand. And, of course, the collateral underlying Australian asset-backed securities (ABS) continues to be of high quality, with arrears rates on Australian mortgages remaining low,” he said.
Debelle said the new information requirements “should not only benefit the Reserve Bank in assessing the quality of the securities provided to it as collateral, but also be of benefit to the market as a whole”.
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