<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

<html><body>
Following nearly three days of silence NAB has reduced its standard variable home loan rate by 20 basis points to 6.58% p.a.
NAB will also reduce its rate on standard variable business rate lending products by 0.2 percentage points p.a.
Both new rates are effective from Monday, October 8.
The banks says it has offered the lowest SVR of the major banks for the past 39 months, saving borrowers $1,800 in interest compared with those who have a standard variable loan with another major bank.
<img src="/images/stories/2012/09/banksoct5.gif">
But borrowers will be upset that the bank has not passed on the full 25 basis points on offer following Tuesday’s cash rate cut.
NAB has maintained its promise of having the lowest standard variable rate of the major banks throughout 2012.
Soon after the NAB announcement, the Commonwealth Bank said it would also pass on 20 basis points to variable mortgage holders, reducing its SVR to 6.6% from October 12.
Were ANZ to pass on 23 basis points or more at its independent interest rates meeting next Friday it would surpass NAB's 6.58% offering.
Westpac cut its SVR by 18 basis points to 6.71% effective from October 15.
NAB group executive for personal banking, Lisa Gray, said decisions on interest rates were not taken lightly and NAB had sought to strike the right balance between offering the lowest SVR of the major banks and its obligations to ensure Australian banks are safe and secure. "Banks obtain funds for lending from deposits and from wholesale funding markets. Around the world, banking regulators require banks to hold more stable forms of funding, like deposits, to reduce risk in the banking sector,” says Gray. "The increased competition for deposits is pushing up costs, making it more expensive to fund our lending. “The decision we have taken today means we can continue to offer competitive deposit rates while delivering on our pledge to have the lowest SVR of the major banks for 2012.”
</body></html>

lschlesinger-FZcF9M3vE6

NAB passes on 20 basis points and trims standard variable rate to 6.58%

<html><body>
We have all heard the old saying about death and taxes being the only two certainties in life. This may not be the case when you take superannuation into account, but that is for another article. Having said that, you should claim all legitimate property deductions so as to maximise the return on your investment.
For property investors, that means treating your investments as a business (notwithstanding the ATO does not recognise passive property investing as a business, which has certain tax treatments available) and claiming all deductions against your rental income or capital gains if the property is sold.
You also need to ensure that you do not arbitrarily create situations just to get a tax deduction, as this will be seen as tax avoidance and taxed anyway. Your dominant purpose cannot be for tax a benefit.
“Claim all legitimate tax deductions” may sound straightforward. The problem is, however, that the tax law is complicated and constantly changing. Indeed even the ATO may have a change of position in its thinking. It is therefore critical that property investors do not “under claim”, or claim for ineligible expenses (leading to a very emotive time if audited). 
To maximise your allowable deductions you must first understand what you are entitled to and then make sure you claim it. The concept of stopping the leakage is critical, as the word leakage implies losing what you have or are entitled to, which is exactly what happens if you do not claim all allowable deductions. 
There are several types of expenses that are deductible immediately.
In simple terms, these are costs that are created and paid for in the one year relating to the ongoing ownership of your investment property. You should in all cases be able to prove to the Australian Taxation Office (ATO) that the expenses that you are claiming relate to legitimate business expenses for the investment property.
It should therefore go without saying that you must keep all records of payments whenever you incur an expense. These expenses should not be guessed or inappropriately apportioned. This will save you a great deal of time and money when you submit your tax return and any subsequent ATO review or audit as the ATO can legally refuse unsubstantiated claims.
Ken Raiss is a certified accountant and director of <a title="Chan &amp; Naylor " href="https://www.chan-naylor.com.au/" target="_self">Chan &amp; Naylor</a> national accounting firm. Chan &amp; Naylor offers a free five-minute question-and-answer session on its website under the<a href="https://www.chan-naylor.com.au/ask-the-experts/" target="_blank"> "Ask the Experts" section.</a>
</body></html>

kenraiss-JsVyb3YKka

Claim all you can on your property investment, but don't invest just for the tax benefit

<html><body>
While the major banks keep as quiet as church mice, ING Direct has passed on the full 25 basis point rate cut to its borrowers.
The rate cut will take effect on October 12 and will reduce the interest rate on its most popular variable rate offering, Mortgage Simplifier to 5.97%.
ING Direct is the fifth largest home lender in the country, with $38 billion in mortgages.
Also today, The Greater Building Society has announced that it will reduce its already low home loan rates by between 0.15  and 0.25 percentage points.
A full rate cut will apply to the Greater’s Ultimate Home Loan (packaged loan) rate which will fall to 5.74% (comparison rate 6.09%).
The Greater’s standard variable home loan and basic variable home loan rates will fall by 0.15 percentage points to 6.25% p.a (comparison rate of 6.31% p.a.) and 5.89% p.a. (comparison rate of 5.95% p.a.) respectively.
The decrease in rates is effective from Monday for new loans and for existing customers from October 15.
Customers on a 30-year standard variable or basic home loan of $300,000 will see their monthly repayments reduce by $30.
CEO Don Magin says The Greater wanted to pass on as much of the cut as possible as quickly as possible to customers.
He says intense competition and high loan funding costs meant that The Greater was not able to pass on the full rate cut this time.
The Greater’s standard and basic variable home loan rates will remain lower than those of the major banks, even lower when comparison rates are used.
</body></html>

ING Direct passes on full rate cut while Greater Building Society passes on 15 bps to standard variable customers

<html><body>
The RBA is likely to cut the cash rate again on Melbourne Cup Day (November 6) with another rate cut in the March quarter, according Shane Oliver, chief economist at AMP Capital.
Oliver expects the cash rate to fall to 2.5% over the next six months to deliver a variable mortgage rate of around 6%, a setting which will encourage growth and improving consumer and business confidence.
According to Oliver the current average standard variable rate of around 6.75% is the new “new neutral” setting and at a level that is only “just starting to become stimulatory”.
He expects the banks to pass on around 20 out of the 25 basis points on offer following Tuesday’s cash rate cut to 3.25%, which would take the average standard variable rate to 6.6%.
“In the last two easing cycles the mortgage rate had to fall to around 6.05% in 2002 and to 5.8% in 2009.
“Given the fall in the likely neutral level for mortgage rates and the current headwinds coming in the form of the strong Australian dollar and fiscal tightening, mortgage rates will at least need to fall to these lows.
“Given the 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.
This is because banks have not passed on past rate cuts in full due to “funding issues”.
“Basically banks have been seeking to reduce their reliance on non-deposit funding which has proved unreliable since the GFC and to do this they have had to offer higher deposit rates relative to the cash rate than would normally be the case.
“This has resulted in higher lending rates relative to the cash rate than was the case pre GFC.”
Oliver says the RBA is “coming around to this view”.
“As such we expect another 0.25% cash rate cut next month on Melbourne Cup day, followed by a cut to 2.5% in the March quarter next year,” Oliver says.
Oliver says key sectors likely to benefit from lower rates are retailers, building materials and home builders.
</body></html>

RBA “coming round” to need for November rate cut and 2.5% cash rate: Shane Oliver

<html><body>
The interest rate gift from the RBA this week, its fifth cut in the past 12 months, will be a further catalyst for property markets already moving steadily into recovery. 
The only time in the past 20 years the official rate has been lower than it is now was in 2009, following multiple cuts in response to GFC-related issues. 
It’s clear from the messages I get from real estate consumers that intending buyers await RBA deliberations before making decisions. 
But, if they were thinking clearly, the monthly interest rates moves from Glenn Stevens and his colleagues would be irrelevant. 
No one with a cogent long-term investment strategy would be swayed by short-term trends in interest rates. Buying a property means, for most people, taking on a mortgage commitment stretching decades into the future. During the life of the loan, there will be multiple rate cycles. This month’s RBA decision is essentially meaningless. 
In the past 20 years we’ve had 51 changes to the official cash rate – 24 reductions and 27 increases. The increases tend to be in smaller increments than the cuts, so the net effect is that rates are today considerably lower than they were two decades ago. 
The key point is that there have been four peaks and five troughs (including the current one) since the early 1990s. At a couple of points in that cycle (in 1996 and in 2008), the cash rate has been about 4 percentage points higher than the current level. 
The next 20 years is unlikely to be much different. 
In the light of that information, nervous investors who sit on their hands awaiting the next RBA decision, while reading the breathless daily speculation by economists in the weeks preceding the monthly board meetings, are demonstrating a losing of the plot. 
The issue that should be focusing their minds is this: if I buy a property and take on a mortgage, at some point during of the life of my mortgage rates will be higher than they are now. Will I be able to cope if rates are 2 percentage points higher than now? How about if they go 3 percentage points higher? 
If I’ve done my sums and concluded I can deal with the inevitable fluctuations along the way, then my decision should not influenced by RBA moves last month, this month or next month, nor the relentless pointless and usually inaccurate speculation on future movements by the endlessly chattering economists (most predicted the RBA would not cut rates this week and expressed their usual surprise when they discovered they’d got it wrong yet again). 
The current low levels are little more than a short-term bonus.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
</body></html>

terryryder-YECXbqmri2

RBA’s interest rate cut a meaningless gift for property investors with a cogent long-term strategy: Terry Ryder 

<html><body>
The percentage of Australian borrowers more than a month behind on their mortgage repayments fell for the second consecutive month in July following the RBA cash rate cuts in May and June, with the proportion of Australian borrowers at risk of defaulting on their mortgages well below that of other first-world economies, according to global credit rating agency Moody's.
Moody’s expects the arrears rate to hold steady for the remainder of the year following Tuesday’s rate cut.
The delinquency rate for mortgages more than 30 days in arrears in the Australian prime residential mortgage market was 1.61% in July, down from 1.66% in June and 1.67% in May.
A year ago the 30-day-plus arrears rate was 1.64%.
The biggest fall was the in the 30 to 60 days in arrears basket, which dropped from 0.74% to 0.66%, a month-on-month decline of 10%.
However, those borrowers more than three months behind in their mortgage payments increased from 0.63% to 0.66% – a rise of nearly 5%. 
<table border="1" cellspacing="0" cellpadding="0" width="403"><tbody>
<tr>
<td valign="bottom" width="65" nowrap>
Australian Prime RMBS
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
MTM
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
YOY
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="70" nowrap>
Jul-12
</td>
<td valign="bottom" width="70" nowrap>
Jun-12
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
<td valign="bottom" width="70" nowrap>
Jul-11
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
30-60 days
</td>
<td valign="bottom" width="70" nowrap>
0.66%
</td>
<td valign="bottom" width="70" nowrap>
0.74%
</td>
<td valign="bottom" width="65" nowrap>
-10.2%
</td>
<td valign="bottom" width="70" nowrap>
0.71%
</td>
<td valign="bottom" width="65" nowrap>
-5.8%
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
60-90
</td>
<td valign="bottom" width="70" nowrap>
0.29%
</td>
<td valign="bottom" width="70" nowrap>
0.29%
</td>
<td valign="bottom" width="65" nowrap>
0.2%
</td>
<td valign="bottom" width="70" nowrap>
0.30%
</td>
<td valign="bottom" width="65" nowrap>
-1.9%
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
90+ days
</td>
<td valign="bottom" width="70" nowrap>
0.66%
</td>
<td valign="bottom" width="70" nowrap>
0.63%
</td>
<td valign="bottom" width="65" nowrap>
4.9%
</td>
<td valign="bottom" width="70" nowrap>
0.63%
</td>
<td valign="bottom" width="65" nowrap>
3.9%
</td>
</tr>
</tbody></table>
Source: Moody’s
Putting this into an international context, the US has a 60 days or more arrears rate of 6.57% – six times higher than Australia (0.95%)
One of the worst-performing housing markets is Ireland, which has a 60 days or more arrears rate of 17.22% – meaning nearly one in five borrowers are at risk of default.
Another basket case economy, Greece, has more than doubled its 60-day-plus arrears rate from 2.38% in August 2010 to 5.37% in August 2012.
Japan has a 60-day-plus arrears rate of 0.21%.
 
<hr class="system-pagebreak">
 
"We believe the rate of arrears will hold steady in 2012 because of the recent cuts in interest rates and our expectation that GDP growth will remain robust at 3.8% in 2012," says Jennifer Wu from Moody’s.
"Given that the benefits of economic growth and low interest rates will not be felt equally across all sectors, certain regions, such as those dependent on tourism and retail, which are under pressure due to the strong Australian dollar, will see a rise in arrears.
“But, Moody's expects this trend to be offset by the decline in arrears in other regions," she adds.
The arrears rates are calculated based on the performance of loans packaged and sold to investors as residential mortgage-backed securities – also known as securitisation.
There was also an improvement in low-doc arrears rates (30 days or more), which improved from 5.72% to 5.52%.
The performance of non-confroming loans provided to credit-impaired borrowers at higher interest rates also improved from 12.47% to 11.33%. 
<table border="1" cellspacing="0" cellpadding="0" width="391"><tbody>
<tr>
<td valign="bottom" width="68" nowrap>
Australian Non-Conforming RMBS
</td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap></td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
MTM
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
YOY
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap></td>
<td valign="bottom" width="65" nowrap>
Jul-12
</td>
<td valign="bottom" width="65" nowrap>
Jun-12
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
<td valign="bottom" width="65" nowrap>
Jul-11
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
30-60 Days
</td>
<td valign="bottom" width="65" nowrap>
3.85%
</td>
<td valign="bottom" width="65" nowrap>
4.72%
</td>
<td valign="bottom" width="65" nowrap>
-18.4%
</td>
<td valign="bottom" width="65" nowrap>
4.22%
</td>
<td valign="bottom" width="65" nowrap>
-8.8%
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
60-90 Days
</td>
<td valign="bottom" width="65" nowrap>
2.57%
</td>
<td valign="bottom" width="65" nowrap>
2.18%
</td>
<td valign="bottom" width="65" nowrap>
17.9%
</td>
<td valign="bottom" width="65" nowrap>
2.79%
</td>
<td valign="bottom" width="65" nowrap>
-8.1%
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
90+Days
</td>
<td valign="bottom" width="65" nowrap>
4.91%
</td>
<td valign="bottom" width="65" nowrap>
5.58%
</td>
<td valign="bottom" width="65" nowrap>
-12.0%
</td>
<td valign="bottom" width="65" nowrap>
5.39%
</td>
<td valign="bottom" width="65" nowrap>
-8.9%
</td>
</tr>
</tbody></table>
Source: Moody's
Non-conforming mortgage arrears rates peaked at 17.44% in January 2009.
The Moody’s research shows the extent of the decline of this source of funding since the GFC.
In 2007, just before the GFC froze securitization markets, Moody’s rated 75 tranches of residential mortgage-backed security deals sold to institutional investors. There were 20 tranches rated by Moody’s in 2008 and just eight in 2009.
For the first seven months of 2012 Moody’s has rated just 12 tranches.
</body></html>

Australian borrowers remain world beaters on mortgage management as arrears fall further in July: Moody’s

<html><body>
Yes, interest rates fell.
But what do we know?
The local economy is tough.  Overseas markets more so.  Or is it more about structural change than cyclical factors?  Ditto Australia’s housing markets.
Australians are saving at near-record rates.
Budget cutbacks means less fiscal stimulus.
We are spending money but on different things – travel and online goods, not local produce and especially not new housing (or established housing, for that matter).
We are paying down our mortgages, and taking on new debt is way out of fashion.
Inflation looks contained – well, for now.
Established house prices are starting to rise – up over 3% since May or close to 9% on an annualised rate.
Population growth across Australia is on the rise again.
The Aussie dollar remains high.
Very few people are admitting they like Alan Jones right this minute.
For mine, this week’s drop in official rates will have very little impact on our economy.  The banks are limited as to how much they can pass on.  Rates are expected to fall again in November.
True, a rate drop is better than a rate rise, given our current collective frump.
 
<hr class="system-pagebreak">
 
But what we need is a boost to our confidence.  A fall in interest rates won’t do it.  This week’s fall and even next month’s is already factored into our expectations.  It’s like having meat and three veg for dinner, the usual and so ho-hum.
Confidence, that’s what is missing and for the life of me, I don’t see it on the horizon and regardless of what direction I look.  I definitely don’t see in when I look south towards Canberra.  I was hoping to see it in George Street, but maybe my expectations were set too high.  I am not seeing it across the Pacific.  Heck, I cannot even watch a footy match these days without someone getting their ear nearly bitten off.
Without being sexist, Tom Waits has got it right – “there ain’t enough raised right men”.
We need to build something – another Snowy Mountains something.  Or really attempt to solve a major human suffering – and something tangible, like infant mortality or AIDS – and not the nebulous like “climate change”.  We need a plan and a leader to articulate and implement it.  Branson and co. need to step up.  No politician – well, not out of the current crop – is going to do it.  Ditto those mining magnates.
We need our own Springsteen.  Where’s Midnight Oil when you need them?  Come on, Pete – give up your day job!
But before I get higher on my high horse:
All the ingredients are there for another housing upturn – low rates; high yields (often now positive); a rising population growth rate; soft housing starts; very tight vacancy rates; higher rents and now rising end prices, and yet I will get more “spruiker” direct email replies from this post than “high fives”.
It’s a strange world we live in these days for sure.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.com.au/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
</body></html>

michaelmatusik-49YzLvdmNv

What we know about the housing market in the wake of the RBA's cash rate cut

<html><body>
Banks' dominance of the mortgage market – now above 90%  of all home loan approvals – means they have been able to take 10.6 days to pass on RBA cash rate cuts.
By contrast, they take 6.8 days to lift mortgage rates when the RBA lifts the cash rate.
In addition, research suggests banks have passed on 116% of cash rate rises (above official rate increases), while only passing on 84% of the benefit of RBA cash rate cuts.
These figures are contained in the latest edition of the Economic Record, published the Economic Society of Australia, which calculated the time banks take based on the last two years of RBA cash rate decisions.
Westpac is the worst offender when it comes to passing on rate cuts – taking 13 days, while the Commonwealth Bank is the quickest to pass on rate rises – taking just three days.
How long banks take to pass on RBA rate rises and rate cuts (decisons from May 2010 to June 2012)
<table border="1" cellspacing="0" cellpadding="0" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
When rates rise
</td>
<td valign="top" width="205">
When rates fall
</td>
</tr>
<tr>
<td valign="top" width="205">
Westpac
</td>
<td valign="top" width="205">
8.5
</td>
<td valign="top" width="205">
13
</td>
</tr>
<tr>
<td valign="top" width="205">
Commonwealth Bank
</td>
<td valign="top" width="205">
3
</td>
<td valign="top" width="205">
9.75
</td>
</tr>
<tr>
<td valign="top" width="205">
ANZ
</td>
<td valign="top" width="205">
8
</td>
<td valign="top" width="205">
12.5
</td>
</tr>
<tr>
<td valign="top" width="205">
NAB
</td>
<td valign="top" width="205">
8
</td>
<td valign="top" width="205">
7.25
</td>
</tr>
<tr>
<td valign="top" width="205">
Big Four Average
</td>
<td valign="top" width="205">
6.8
</td>
<td valign="top" width="205">
10.6
</td>
</tr>
</tbody></table>
Source: Economic Record/Sydney Morning Herald
Westpac is also the worst offender when it comes to the margin between the standard variable rate and the cash rate.
Westpac's margin is 352 basis points, followed by ANZ (339 basis points), Commonwealth Bank (326 basis points) and NAB (315 basis points).
However, borrowers will have themselves partly to blame if the major banks – as expected – do not pass on the full 25-basis-point October RBA rate cut this week.
The following chart prepared by investment firm Nomura shows that Australian banks' share of total mortgage approvals has risen well above 90% as borrowers choose to secure their home loans through well-known brands.
This is despite non-bank lenders, building societies and credit unions offering competitive and in many cases lower fixed and variable-rate offerings.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/nomura.gif"><img src="/images/stories/2012/09/nomurathumb.gif"></a>
 
<hr class="system-pagebreak">
 
Banks' share of the mortgage market surged in the wake of the GFC from 80% of the market to more than 90% as non-bank lenders and mutuals were forced to ration their credit or in some cases stop lending all together.
Before this, the  major banks lost market share in the mid to late-1990s following the rise of the non-bank sector led by battler mortgage brands, including John Symond’s Aussie Home Loans, John Kinghorn’s Rams Home Loans and Mark Bouris’s Wizard Home Loans.
Aussie Home Loans is now a third owned by the Commonwealth Bank and is predominantly a mortgage broker.
Rams Home Loans had a disastrous float on the ASX, coinciding with the start of the GFC. Its brand and stores were snapped up by Westpac in October 2007 for a paltry $140 million – Rams had raised $695 million when it listed on the ASX in July 2007 at $2.50 a share. The former Rams mortgage book, now called RHG Limited, is now in run-off. Shares are trading at around 39¢.
Mark Bouris sold Wizard Home Loans to GE Money in 2004. GE Money quit mortgage lending in 2008, as wholesale funding costs soared, leaving some borrowers high and dry, with some of the highest variable mortgage rates in the market as it refused to pass on big RBA cash rate cuts.
Aussie acquired the Wizard Home Loans brand and franchise network in December 2008.
All Wizard Home Loans stores are now branded Aussie.
Let us know what you think will happen with interest rates and the property market in spring. <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute survey for your chance to win an iPhone 5.</a>
</body></html>

Borrowers left waiting 10.6 days for a partial rate cuts as banks assert market dominance

<html><body>
AFG recorded a fall in mortgage sales in September, but an increase in borrowers that chose to fix their home loan, according to the mortgage broker’s latest monthly mortgage index.
Fixed-rate mortgage sales accounted for 21.5% of all new home loan sales over September up from 19.9% in August and 16.8% in July with three-year fixed rate home loans particularly popular.
One of the lenders on AFG’s panel, ME Bank recorded a surge in fixed-rate mortgage applications, which now account for 45% by value of all new applications, up from 14% earlier in the year.
ME Bank offers a three-year fixed home loan at 5.39% - one of the lowest in the market.
A procession of lenders have cut their fixed rates over the past few weeks including the major banks and regional banks.
While fixed rate demand increased, overall demand for housing finance fell in September.
AFG processed $2.7 billion of loans last month compared with $2.6 billion in September 2011.
Mortgage sales were down more than 10% from the $3 billion recorded in August reflecting the latest RBA figures to August, which has mortgage growth at an annualised rate of just 4.8% - the lowest for records going back to 1991.
The number of home loans arranged by AFG brokers fell by nearly 850 over the month with brokers arranging 6,882 loans in September compared with 7,730 in August.
“We welcome the RBA decision. Both the figures and our brokers are saying that while there are some areas of confidence, things are generally very patchy,” said Mark Hewitt, general manager of sales and operations at AFG.
 “The property market has been slow to emerge from winter and whilst no one is expecting any dramatic rebounds, the interest rate cut will help.”
AFG also recorded that loan-to-value ratios increased from 66.9% in June to 69% in September.
First-home buyers accounted for just 13.2% of all AFG home loans arranged over September, down from 15.9% in August
Non-major banks gained market share to 24% of all new home loans last month – up from 22.2% in August. 
</body></html>

AFG fixed-rate demand increasing as ME Bank locks in 45% of all new borrowers

<html><body>
While borrowers wait to hear how much of the 25 basis points the major banks will pass on following yesterday’s cash rate cut – ANZ borrowers must wait until Friday 12 October – Property Observer has compiled a list of the lowest fixed and variable rate offerings currently in the market.
Non-bank lender eMoney is offering a three-year fixed home loan at 5.2% – the lowest advertised rate on offer.
eMoney operates as an online lender, based in Homebush, Sydney. Customers can also call to arrange their mortgages. The lender says it can offer such cheap rates by “cutting out the middleman”.
ME Bank, which offers a three-year fixed home loan at 5.39%, says fixed rates continue to be in high demand and now account for 45% by value of all new applications, up from 14% earlier in the year.
Even when the major banks do make their announcements, rate changes are unlikely to take effect immediately.
<a target="_blank" href="/news">Bank of Queensland yesterday trimmed 20 basis points from its standard variable-rate home loan to 6.71%</a> per annum, but only effective from Friday,  October 19, 2012.
The following results are based on advertised mortgage rates listed by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of October 3:
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
eMoney
</td>
<td width="124" valign="top">
Pro Pack 75
</td>
<td width="97" valign="top">
5.6%
</td>
<td width="116" valign="top">
5.94%
</td>
</tr>
<tr>
<td width="134" valign="top">
UBank
</td>
<td width="124" valign="top">
uHome Loan for refinancing
</td>
<td width="97" valign="top">
5.62%
</td>
<td width="116" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="134" valign="top">
Loans.com.au
</td>
<td width="124" valign="top">
Dream Catcher
</td>
<td width="97" valign="top">
5.65%
</td>
<td width="116" valign="top">
6.01%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
My Mortgage Freedom
</td>
<td width="123" valign="top">
Fixed Rate loan
</td>
<td width="95" valign="top">
5.34%
</td>
<td width="114" valign="top">
5.98%
</td>
</tr>
<tr>
<td width="137" valign="top">
QT Mutual Bank
</td>
<td width="123" valign="top">
Choice Residential One Year Fixed
</td>
<td width="95" valign="top">
5.39%
</td>
<td width="114" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="137" valign="top">
ME Bank
</td>
<td width="123" valign="top">
Super Member Home Loan Ultimate Offset
</td>
<td width="95" valign="top">
5.39%
</td>
<td width="114" valign="top">
6.57%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
eMoney
</td>
<td width="133" valign="top">
Pro Pack 75
</td>
<td width="97" valign="top">
5.20%
</td>
<td width="108" valign="top">
5.87%
</td>
</tr>
<tr>
<td width="133" valign="top">
ME Bank
</td>
<td width="133" valign="top">
Super Member Fixed Three years
</td>
<td width="97" valign="top">
5.39%
</td>
<td width="108" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="133" valign="top">
UBank
</td>
<td width="133" valign="top">
UHomeloan for refinancing
</td>
<td width="97" valign="top">
5.48%
</td>
<td width="108" valign="top">
5.68%
</td>
</tr>
</tbody></table>
Have your say on mortgages and other aspects of the property market. <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute spring 2012 property outlook survey</a> for your chance to win an iPhone 5.
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