<p>Repeat buyers are one of the strongest measures of confidence in any apartment development.</p>

<p>At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.</p>

<p>Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe></p>

<p>"I had some boxes I wanted to tick," he says.</p>

<p>Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.</p>

<p>“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.</p>

<p>He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356818]</p>

<p>After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.</p>

<p>"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."</p>

<p>Today, Keith says the move has completely changed how he experiences Newcastle.</p>

<p>"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356828]</p>

<p>Beyond the location, he says it's the sense of community that has surprised him most.</p>

<p>"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."</p>

<p>For Aimee and Lyle Goodman, the journey started almost by chance.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe></p>

<p>The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.</p>

<p>"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."</p>

<p>As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.</p>

<p>"We actually catch up more as a family now," Aimee says.</p>

<p>"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356829]</p>

<p>Lyle says their confidence came from GWH's reputation within Newcastle's building industry.</p>

<p>"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."</p>

<p>That confidence only grew throughout the buying process.</p>

<p>"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351104]</p>

<p>Aimee says one moment stood out.</p>

<p>"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."</p>

<p>The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.</p>

<p>Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356822]</p>

<p>ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;</p>

<p>The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356826]</p>

<p>For Keith, the appeal remains straightforward.</p>

<p>"You feel at home even before you've moved into your home."</p>

<p>For Aimee, the change is measured in time.</p>

<p>“I just felt like I had more time,” she says.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351102]</p>

<p>Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.</p>

<p>ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.</p>

<p>[smartcode_project_cta:default project_id=135096]</p>


Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

<p>Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.</p>

<p>Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.</p>

<p>"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.</p>

<p>"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372549]</p>

<p>Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.</p>

<p>"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.</p>

<p>The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=314259]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.</p>

<p>According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.</p>

<p>Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372550]</p>

<p>Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.</p>

<p>The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.</p>

<p>The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.</p>

<p>"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."</p>

<p>The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.</p>

<p>With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.</p>

<p>[smartcode_project_cta:default project_id=4661]</p>


Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

<p>Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.</p>

<p><a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.</p>

<p>The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.</p>

<p>Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.</p>

<p>Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355297]</p>

<p>The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.</p>

<p>Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.</p>

<p>"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.</p>

<p>The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355293]</p>

<p>The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.</p>

<p>According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.</p>

<p>The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;</p>

<p>Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355303]</p>

<p>The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.</p>

<p>"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.</p>

<p>"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355304]</p>

<p>Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.</p>

<p>Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.</p>

<p>[smartcode_project_cta:default project_id=102717]</p>


Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

<p>New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.</p>

<p>It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.</p>

<p>With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.</p>

<p>The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.</p>

<p>Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.</p>

<p>"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.</p>

<p>"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=953]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.</p>

<p>Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.</p>

<p>That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.</p>

<p>Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.</p>

<p>"The Lennox is where aspirational living becomes attainable," Hamblett said.</p>

<p>"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."</p>

<p>Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.</p>

<p>"At The Lennox, lifestyle is not an afterthought, it is the foundation."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=5374]</p>

<p>The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.</p>

<p>Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.</p>

<p>That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.</p>

<p>"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


The apartment price gap drawing Sydney buyers west

<p>A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.</p>

<p>The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.</p>

<p>The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.</p>

<p>The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.</p>

<p>Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.</p>

<p>"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.</p>

<p>"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."</p>

<p><img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" /></p>

<p>Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.</p>

<p>Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.</p>

<p>Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.</p>

<p>"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.</p>

<p>"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."</p>

<p>Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.</p>

<p>Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.</p>


Rainbow Bay apartment doubles in price since off the plan sale during pandemic

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


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

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


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?

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


alisonwarters@gmail.com

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

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


Ellen Walker

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

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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<p>A three bedroom brick and tile house in Koongamia, a northeastern suburb of Perth, has been listed for $349,000 by mortgagees.</p>
<p>The Western Australian home is offered by Donna Gibb from Harcourts.</p>
<p>Built in 2003,<a href="https://www.realestate.com.au/property-house-wa-koongamia-128290002" target="_blank"> the 33B Koolgoo Way house</a> comes with three double sized bedrooms, formal lounge, open plan dining and outdoor entertaining area. </p>
<p>It also features the well-appointed kitchen, entrance hall and family room. </p>
<p>Nestled on an easy care 548 square metre block, it is close to shops, school and public transport.</p>
<p>It last sold at $372,500 in 2007.</p>
<p>It hit the market in March with other agents at $379,000.</p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Koongamia three bedroom brick house for mortgagee sale

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<p>SPONSORED POST</p>
<p>“My one bedroom investment property created more wealth in 3 years, than I could have saved in 13 years in my career. At this point, I realised I needed to take property investment very seriously. Because just one property purchase had changed the course of my life.”</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Bruce-262x300.jpg" alt=""></p>
<h2><strong>CASE IN PROFILE:</strong></h2>
<ul>
<li>Former graphic designer/account director and Ironfish customer</li>
<li>Career change into property investment</li>
<li>8 investment properties, 5 purchased through Ironfish</li>
<li>Rent-vestor</li>
</ul>
<h2>That one property purchase</h2>
<p>Bruce has been with Ironfish for nearly 3 years and is a senior Strategist as well as being part of the leadership team in the Ironfish Burwood office.</p>
<p>Prior to joining us, Bruce enjoyed a successful 13-year career in the design industry, starting out as a graphic designer and moving on to account management when (as he says quite matter-of-factly) he discovered his talent and love for working with people far outweighed any natural creative genius! At around the same time as making this switch, Bruce and his wife Evelyn, also decided to buy their first investment property: a one-bedroom second-hand apartment in Stanmore, a suburb in Sydney’s inner west. A decision which turned out to be life-changing.</p>
<blockquote>
<p>“The amount of wealth my one-bedroom investment property in Stanmore created for me was about 10 times more than I could have saved in my career for the past 13 years. I knew then that I needed to get involved with property – initially that was by becoming a more active property investor, and eventually, this put me on the path to joining Ironfish as well.”</p>
</blockquote>
<h2>Why I decided to buy property with Ironfish</h2>
<p>After Stanmore, Bruce and Evelyn purchased two off-the-plan apartments in Parramatta through a different company, and after two years, when they had built some equity across all 3 properties, they agreed to meet with Ironfish Burwood Strategists Yusi and Haibin to consider further investment options.</p>
<p>“I’ve bought from our ‘competitors’, I’ve bought from traditional real estate agents, and what I’ve found is that most people are quite transaction focussed, and there is very little contact after you’ve bought your property.</p>
<p>“When Yusi and Haibin came to our place, it was a very different type of service. Initially I was still thinking from a transactional view as well, and wanted to just quickly view properties and move on. But before they would show me any properties, they first asked me questions like: ‘What are you going to do in the next 10 – 15 years?’ ‘What are your dreams?’ ‘What are the things you want to pursue in life?’ And a big one, which we had never considered: ‘How can you ensure you can continue the lifestyle you enjoy now, in the event that one or both of you needs to stop working?’ What I learned from our first meeting was that Ironfish Strategists were different; they were not focused on the transaction, they truly cared about my future and about building wealth for my family.”</p>
<div id="attachment_7493" class="wp-caption alignnone">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Bruce-evelyn-1024x768.jpg" alt=""><br><p class="wp-caption-text">Bruce and his wife Evelyn, with their Strategists Yusi and Haibin</p>
</div>
<h2>A cut above</h2>
<p>While Bruce was impressed with the service and ethos of Ironfish Strategists, he and his wife also fell in love with the properties. On their second meeting, they decided to buy two properties: one apartment in Brisbane (The Melbourne Residences) and one in Melbourne (Aurora).</p>
<p>“The quality of the properties and the locations of those properties were a cut above anything else I’d seen out there. For example, we bought a one-bedroom apartment in ‘Aurora’ for $397,000. Aurora is built on top of Melbourne’s central station, and is the only building in Australia with direct lift access down into the train station and shopping centre below. Imagine if a luxurious skyscraper was built on top of the QVB – that was the kind of building we’d managed to buy into. And I always thought that you needed to be a millionaire or have special connections to get into those developments. The fact that Ironfish could offer me a property like that made me think this company has a lot going for it!”</p>
<h2>Paying the price</h2>
<p>Shortly after their purchase, Yusi invited Bruce along to one of Joseph’s half day seminars – which set him on his path to a new career.</p>
<div id="attachment_7480" class="wp-caption alignleft">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/bruce-dreamboard-low-res-e1512083506577-168x300.jpg" alt=""><br><p class="wp-caption-text">“Travel to all the fabulous places around the world” – A page out of Bruce and Evelyn’s dream-book</p>
</div>
<p>“I was extremely impressed and inspired by Joseph, and I knew immediately that he was someone I wanted to learn from. There was one thing he said that sticks with me to this day. He said: ‘First, you decide what it is you want from life, secondly, ask yourself what price you have to pay to achieve it, and thirdly, pay the price.’ I went home and asked my wife that question: ‘What do you want to achieve in life?’</p>
<p>“We sat down and made ourselves a ‘dream-board’ with pictures of everything we wanted for ourselves and those around us. At the end of the day, I really believe in the law of attraction. I knew that joining Ironfish, talking to successful investors and entrepreneurs like Joseph or [Burwood MD] Linda everyday would help us get to where we wanted to go – and that staying in our current jobs wasn’t going to be adequate. So, my wife and I both made the decision to resign from our jobs and came onboard with Ironfish. It has completely transformed our lives – not just financially, but mentally – how we look at life and perceive things. I can safely say it’s the best decision we’ve ever made!”</p>
<p>After joining the Ironfish team, Bruce has since purchased a further 3 investment properties diversified across multiple cities, and has helped nearly 100 customers invest in the Australian property market. Bruce’s next investment is likely to be a house and land package in South East Queensland.</p>
<h2><strong>Bruce’s property investment tips:</strong></h2>
<ul>
<li>Buying an investment property rather than a home to live in may help accelerate your ability to build wealth – so it’s worth considering if this is more of a priority to you than immediate lifestyle demands.</li>
<li>Build a successful team with the sole purpose of protecting and building your wealth, e.g. a successful property professional, a mortgage broker who knows the ins and outs of financing structures, an accountant who can help you with tax minimisation, lawyer who can identify clauses that might put you at disadvantage in your purchases.</li>
<li>No market is perfect, no market is certain. As an investor, be prudent and diversify and look at where the bigger picture lies. If an area has good scope for population growth, infrastructure spending and employment, and the property is high quality and you can service it comfortably, then I have the confidence to recommend my customers get into any market – whether it’s a peak market like Sydney, or an up and coming market like Perth.</li>
</ul>
<p>Bruce Guan is a senior property investment strategist at Ironfish.</p>
</body></html>

jrobinson-rf4aSBido9

How one property purchase changed the course of someone's life

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<p>SPONSORED POST<a href="http://www.ironfish.com.au/blog/2017/12/14/australias-population-growth-30-years-ahead-schedule/"> </a></p>
<p>In 1998, the Australian Bureau of Statistics (ABS) predicted that Australia’s population would grow to at least 23.5 million people in 2051.</p>
<p>In reality, we reached that milestone back in July 2014 – that was the ‘low-growth’ prediction.</p>
<p>At most, the ABS predicted, that our population would grow to 26.4 million people by 2051.</p>
<p>But in 2017, our population already sits at 24.7 million people, meaning we’ll hit that upper-end forecast as early as 2021 – about 30 years earlier than the ABS predicted.</p>
<p>According to current growth patterns Australia is set to reach a population of about 38 million by 2051, around 12 million more people than even the highest forecast from 1998.</p>
<h2><strong>Population growth drivers</strong></h2>
<p>Social researcher and demographer Mark McCrindle says that this isn’t because the calculations were wrong, but that “migration policy changes, longevity increases and a solid birth rate have defied the trends that were evident 20 years ago.”</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Ironfish_Infographic_AustralianPopStats_A4FINAL_150dpiResolution-724x1024.jpg" alt=""></p>
<p>Back then, they assumed that women would have fewer babies and the fertility rate (the number of babies a woman would have in her lifetime) would continue to drop to a minimum of 1.6 babies and a maximum of 1.75 babies. However, the fertility rate didn’t decrease, it increased, and now sits at 1.81: a figure which is above even the higher forecast from 1998.</p>
<p>In 1998, life expectancy at birth was 76.6 for and 82 for women. The 1998 prediction for 2051 was that life expectancy would hit a high of 82 for men and 86 for women. However, current life expectancy is already nearly 81 for males and 85 for females and will reach this 2051 target decades early.</p>
<p>“However,” McCrindle says, “the biggest growth factor that has blown out previous population modelling has been the rise and rise of Australia’s net overseas migration.</p>
<p>“In 1998 it was thought that it would grow our population annually by around 70,000, or at the most, 90,000 people. In the last 12 months, Australia has added 231,900 through net migration which is more than 2.5 times even the high-forecast of two decades ago.”</p>
<h2><strong>Global leader in growth</strong></h2>
<p>In the decade to 2016, Australia’s population growth rate was 1.69%, outpacing many other developed countries including other English speaking countries, such as the US, Canada and New Zealand. In fact, Sydney  alone is now home to more people than the whole country of New Zealand.</p>
<p>The world’s more developed countries in aggregate grew by an annual average of 0.3%. The world’s population as a whole increased by an average of 1.2% per year.</p>
<p>According to the UN Population Division, the only developed countries that had a faster rate of population growth were Singapore, Luxembourg and Israel.</p>
<p> </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Australia-population-vs-world.jpg" alt=""></p>
<p><em>Source: Tom Wilson, Principal Research Fellow, Charles Darwin University, writing for<span class="Apple-converted-space"> </span><a href="https://theconversation.com/bloom-and-boom-how-babies-and-migrants-have-contributed-to-australias-population-growth-78097" target="_blank">The Conversation</a></em></p>
<h2><strong>The states compared</strong></h2>
<p>Queensland, NSW and Victoria are all outperforming the nation as a whole, with population growth rates of 1.85%, 1.87% and 2.4% respectively.</p>
<p>Back in 1998, Melbourne’s population was expected to reach between 3.6 and 4.5 million by 2051. It’s already surpassed this range, with a current population of 4.8 million people. Sydney was predicted to reach between 4.7 and 6.2 million. It has a current population of 5.1 million and set to reach the higher forecast within the next 10 years. Melbourne is also now tipped to overtake Sydney as the most populous Australian city in the next 20 years.</p>
<p>While overseas migration has been a primary driver of this growth, according to Principal Research Fellow at Charles Darwin University, Tom Wilson, even if migration policy changes take place in future, the population will still grow significantly.</p>
<p>“In particular,” Wilson notes, “relatively large numbers of people are in the peak childbearing ages. This means that even if migration fell immediately to zero the population would still increase. Demographers call this age structure effect “population momentum”.”</p>
<p><strong>How does population growth affect property prices and where to invest in property in 2018?</strong></p>
<p>Essentially, this comes down to a simple question of supply and demand; when the number of people grows faster than the number of new properties on the market in those key growth areas, then the shortfall will place pressure on prices.</p>
<p>“Of course, this is only one piece of the puzzle for property investors,” says Ironfish National Apartments Manager, Will Mitchell. “Our property and research team looks at the overall picture and considers a number of factors such as infrastructure and government spending, transport and employment options to select areas and properties set to outperform the wider market.</p>
<p>“However, the fact that Australia’s population has surpassed all forecasts from 1998 is truly remarkable and should not be taken lightly.</p>
<p>“One of the most common questions I am asked by people looking to buy investment property is whether now is the right time. My response to that is simple: property investment is a long-term investment, and in 10, 20 or 30 years, do you think property will be in more or less demand in Australia?</p>
<p>“Our unprecedented international migration reflects how unique our country is, and the lifestyle that it offers – we have stunning scenery, world-class healthcare, education, retail and dining and we are ranked as one of the<span class="Apple-converted-space"> </span><a href="http://www.businessinsider.com/worlds-safest-countries-global-peace-index-2017-6?IR=T" target="_blank">safest countries</a><span class="Apple-converted-space"> </span>in the world.</p>
<p>“I think it’s an amazing country, and that’s why so many people want to move here,” he said.</p>
<p>According to McCrindle, the lessons to be learned from this rapid growth in<span class="Apple-converted-space"> </span>Australia’s<a href="http://mccrindle.com.au/resources/Australia-Population-Map-Generational-Profile_Infographic_McCrindle.pdf" target="_blank"> </a>population<span class="Apple-converted-space"> </span>is that urban planners and governments alike need to keep a close eye on population forecasts and plan early for growth.</p>
<p>“And when in doubt,” McCrindle adds, “assume the higher growth forecasts not the lower ones. I’m yet to see an Australian population forecast that needs adjusting down.”  </p>
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Australia’s population growth 30+ years ahead of schedule

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<p>SPONSORED POST</p>
<p>Ironfish provides VIP property opportunities with pre-negotiated deals on apartments, townhouses and house &amp; land packages across Australia.</p>
<p>We are highly selective of the properties we introduce to our investors and every Ironfish approved property has been through a rigorous due diligence process.</p>
<p><strong>VIP and Pre-Public Opportunities</strong><br>Ironfish approved properties are carefully selected, extensively researched and pre-negotiated. As one of Australia’s largest investor networks, Ironfish investors receive preferential access to many of Australia’s premium properties before public release.</p>
<p><strong>Detailed Research</strong><br>Ironfish searches nationally for premium investment opportunities in the most dynamic locations, with strong growth potential. Our comprehensive selection process includes specific selection formulas for houses, apartments and townhouses.</p>
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<p><strong>Turnkey Investments</strong><br>Ironfish coordinates everything required for a property’s long-term success and ease of management so that properties are turnkey and as hassle-free as possible.</p>
<p><strong>Which property selection process is best for you?</strong><br>Our approach differs significantly to the average investor strategy. We recommend investors accumulate a portfolio of different types of property that includes a mix of convenience-focused properties (apartments) and land-focused properties  (houses and townhouses).</p>
<p>At Ironfish, two of our overall strategies include: “<strong>infill</strong>” which generally refers to filling a little gap within an established suburb and “<strong>urban renewal</strong>” areas. Consider suburbs like Rhodes or Victoria Park in Sydney: if you compare these suburbs today to 15 years ago, you can see the dramatic changes that have taken place.</p>
<p>Beyond location, it’s also about selecting the right development. Major factors we consider include transport, convenience for tenants and future owners, employment and lifestyle factors.</p>
<p>After that it comes down to the quality of the development; we want to make sure that the property appeals to a high calibre tenant and has strong future owner occupier appeal.  I.e. who is going to pay a lot more money for this property in the future? And this has to do with who is the developer, what’s their experience and a lot of what we call – “off-market intel” – we’ve been in the market a long time, we’re looking for opportunities that other people don’t have.</p>
<p> </p>
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How do Ironfish select properties to invest in

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<div>There were nervous onlookers aplenty as APRA Chairman Wayne Byres prepared to speak in Sydney last week on prudential lending standards and sound lending practices.</div>
<div> </div>
<div>They needn't have been quite so fearful, in the event, as Byres reassured markets that while heightened scrutiny had uncovered some displeasing practices, most of the heavy lifting has already been done with regards to tighter lending standards.</div>
<div> </div>
<div>For subscribers to our market reports, a number of familiar themes raised: tightening standards have been applied incrementally over a period of several years (rather than overnight as often assumed), a new focus on comprehensive credit reporting to better capture pre-existing debt commitments of borrowers, and some very useful analysis of lower loan-to-value ratios and the decline of interest-only loans. </div>
<div> </div>
<div>While much has been made of a potential 'credit crunch' - mainly by interests hoping to see a credit crunch, it must be said - Byres reiterated how in aggregate annual credit growth has continued to track at 'very healthy' levels, especially for owner-occupiers at about 8 per cent.<br><br>Of course, there are many unknowns about how this will all play out from here. Some parts of the housing market will fare well where demand from homebuyers is high, and others will struggle where the opposite holds true.<br><br><em>Caveat emptor.</em>
</div>
<div><em> </em></div>
<div><strong><span style="text-decoration: underline;">Computer says no credit crunch</span></strong></div>
<div> </div>
<div>As Byres was busy adjusting his tie pre-speech in Sydney, financial markets were digesting the latest housing finance figures for the month of May.</div>
<div> </div>
<div>Supporting what Byres would go on to say in his speech, there was a seasonally adjusted <em>increase </em>in the number of mortgages written across all loan categories, defying market expectations, and a corresponding increase in the total value of lending.</div>
<div> </div>
<div>The 'trend' figures are still shaping lower, but at $31.9 billion the seasonally adjusted housing finance figures were pointing to anything but a credit crunch, especially for the homebuyer cohort.</div>
<p> </p>
<div class="separator"><img src="https://4.bp.blogspot.com/-9qcKV8e6VMk/W0WgxdkJlzI/AAAAAAAArAU/_QoKjOjlLjACVEwN5shP6yjjT1cHkehbgCLcBGAs/s640/HF1.jpg" width="640" height="364" data-original-height="785" data-original-width="1378"></div>
<div class="separator"> </div>
<div>The average loan size for both first homebuyers ($344,600) and non-first homebuyers ($412,000) also hit a record high in May - both in monthly and rolling annual terms - so it appears that those borrowers able to commit to a loan have not seen borrowing capacity trimmed as much as feared, at least in aggregate. </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-NeN8sCx2QBU/W0WkChZvp7I/AAAAAAAArAo/b4bh7Uixy3olAUp0eP05tBZDUfIqmftmQCLcBGAs/s640/HF2.jpg" width="640" height="368" data-original-height="802" data-original-width="1388"></div>
<p><br><strong><span style="text-decoration: underline;">Where to from here?</span></strong><br><br></p>
<div>Clearly no credit crunch in these figures, then, but my sense is that everyone would feel a bit happier with the world if the household debt to disposable income ratio was seen to be no longer rising from its present level of 1.9x. </div>
<div> </div>
<div>APRA has played its part in tightening lending standards for investors, rapidly reducing the stock and flow of interest-only loans (meaning more Aussies paying are now down their debt), and ensuring that new borrowers are stress-tested with what are very significant mortgage rate buffers. </div>
<div> </div>
<div>It's interesting to consider momentarily how so much market commentary has become morbidly fixated on a bad news narrative, almost wilfully overlooking a string of upbeat data over recent months.</div>
<div> </div>
<div>Westpac reported this morning that its consumer confidence index had surged to the highest level since all the way back in 2013, mirroring Aig's index showing the services sector expanding at the fastest pace on record, and jobs vacancies firing to their highest ever level.<br><br>So much for it all being doom and gloom!</div>
<div> </div>
<div>Meanwhile the unemployment rate is easing back towards the lowest level in years, exports are tracking at record highs, and the rolling annual Budget deficit is in the best nick in a decade.</div>
<div> </div>
<div>All sanguine observers are quite clear on the missing piece of the puzzle, though: wages growth!</div>
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pwargent-M4siyDbqQY

Lenders gonna lend: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p>Most of the strongest markets in the nation are now in regional Australia. And regional NSW is the strongest market jurisdiction in the nation.</p>
<p>The key point is that regional New South Wales is moving in the opposite direction to Sydney. While there are now few rising markets in the state capital, there are growth locations spread across the regions of NSW.</p>
<p>Hotspotting’s Winter 2018 survey for The Price Predictor Index reveals that a record 38 local government areas have growth markets – a total of 60 suburbs or towns with rising sales activity.</p>
<p>1. Newcastle and the Hunter Region form a compelling growth precinct. Suburbs in the City of Newcastle have had very strong price growth (most have had double-digit growth and some have risen 20% or more) in the 12 months.</p>
<p>Now the momentum has shifted to neighbouring Lake Macquarie and locations in the nearby Hunter Region near Newcastle (including Maitland, Cessnock, Singleton and Muswellbrook).</p>
<p>Sales in the suburb of Rutherford in the Maitland LGA have been 64, 75, 70, 91, 86, 99 and 102 in the past seven quarters, while Medowie in the Port Stephens LGA have risen from around 40 a year ago to 55 in the latest quarter.</p>
<p>2. Muswellbrook and Singleton continue to improve after the previous downturn caused by over-development and a downturn in the coal industry.</p>
<p>Muswellbrook’s quarterly sales have risen from 41 to 52 to 57 to 75 over 12 months. Singleton and Singleton Heights combined previously had 35 to 45 sales per quarter but in the past 12 months quarterly sales have been 55, 58, 88 and 86.</p>
<p>Following the merger of the Wyong and Gosford LGAs to form the Central Coast LGA, this municipality is now a significant market in regional NSW. The sales patterns suggest this market has probably passed its peak – there are a large number of Plateau markets, places where sales activity has tapered off at levels below the peak.</p>
<p>But sales growth in the recent past has created strong growth in median house prices in the last 12 months, including in Narara (13%), North Gosford (16%), Terrigal (10%), Toukley (15%), Umina Beach (17%) and Wyoming (16%).</p>
<p>3. Queanbeyan on the ACT border continues to stand out as an affordable growth alternative to Canberra. The LGA of Queanbeyan-Palerang has multiple suburbs/towns with upwardly-mobile sales activity. Quarterly sales in Queanbeyan (the suburb) have been 38, 40, 50 and 59 in the past year.</p>
<p>Queanbeyan is closer to central Canberra than many parts of the ACT, has more affordable prices than most Canberra suburbs and benefits from first-home-buyer incentives available in NSW.</p>
<p>Other regional centres to stand out as above-average markets in regional NSW include Albury, Armidale, Bathurst, Dubbo, Grafton Gunnedah, Lismore, Orange, Parkes, Tamworth and Wagga Wagga.</p>
<p>A number of regional towns that would normally not attract much attention from investors are also rising, including Griffith, Inverell, Kempsey, Leeton and Tumut.</p>
<p>A standout is Merimbula on the far south coast of NSW. Quarterly sales have been 36, 46, 47, 56, 55 and 60 in the past 18 months and the median price has risen 18% in the past year.4</p>
<p><em>Terry Ryder is the founder of hotspotting.com.au</em></p>
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terryryder-YECXbqmri2

The three strongest property markets in NSW: Terry Ryder

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<p><em>Hi Margaret,</em></p>
<p class="x_xmsonormal"><em>I'm currently looking to get an investment property in Broken Hill for $69000 which is currently tenanted and is rented out for $180 a week.</em></p>
<p class="x_xmsonormal"><em> I want your opinion on whether or not it's a good investment as the rent from it is more then double the repayments. </em></p>
<p class="x_xmsonormal"><em>A</em><em>nd it got tenanted within about three weeks of being advertised for rent.</em></p>
<p class="x_MsoNormal"><em>Thanks,</em></p>
<p class="x_MsoNormal"><em>Marcus</em></p>
<p class="x_MsoNormal"><em> </em></p>
<p class="x_MsoNormal">Hi Marcus,</p>
<p class="x_MsoNormal">It can be very tempting to invest in a property whereby the rent more than covers the cost of the mortgage on it. Cash flow is a very important aspect of property investing, as when a property can cover its own expenses and loan interest, then you only have to worry about getting a tenant in.</p>
<p class="x_MsoNormal">However, I urge you to think about an investment such as this one over the long term, and understand that capital growth is equally important in every investor’s strategy.</p>
<p class="x_MsoNormal">Over the past 5 years, the median value of Broken Hill has decreased by an annual compounding rate of -0.7%. Over the past 10 years it has had an average annual growth of -2.6%</p>
<p class="x_MsoNormal">Let’s imagine the next 10 years brings the same result. Your $69,000, after 10 years, would be worth $56,000, having lost for you $13,000 in that time. Sure, you haven't had to put in any money along the way, but if you have borrowed to buy this property, you are in the red by $13,000.  Even if, during that time, you paid of a chunk off the mortgage, the overall outcome has been a negative one, and not the kind of result we would like to see in a sound strategy.</p>
<p class="x_MsoNormal">In addition to being able to find a property which has a good enough rental yield to be able to cover its own expenses, the area must have growth drivers. Towns like Broken Hill have a notoriously bad track record for growth, due to itinerant population, lack of infrastructure and lack of population growth. <span class="Apple-converted-space"> </span></p>
<p class="x_MsoNormal">When you become a property investor, price should not be the driving factor. You must also understand that growth has no relationship to the price you pay for a property. You would be far better to pay, say, $350,000 in an area that has all of the growth drivers, and get only a 5% return, than you would spend less in an area with a 10% rental return but a negative growth figure. Over time growth compounds so that, by the time you get to retirement, the property is worth far more than the bank loan on it, and the difference belongs to you. Do this often enough and you build a great net worth.</p>
<p class="x_MsoNormal">The final point to make is that, when a property loses value, your ability to leverage is also lost. Buying properties which grow means that you can, in the future, borrow against that growth to add more properties to your portfolio. When a property loses value, it’s harder to do this unless you are paying significantly more than the loss off the mortgage. If you cannot leverage into more property, then you cannot build a larger portfolio, and it’s really only through building a<span class="Apple-converted-space"> </span><em>portfolio,</em><span class="Apple-converted-space"> </span>rather than owning one or two properties, that you really start to see the value in property investing.</p>
<p class="x_MsoNormal">Stick to properties in areas with significant infrastructure development, a growing population and lots of families, and you will do far better with your property investing.  </p>
<p class="x_MsoNormal">Kind regards,</p>
<p class="x_MsoNormal">Margaret</p>
<p class="x_MsoNormal"><em>Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a></em></p>
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mlomas-KC9MUPZ6Ca

Ask Margaret: Should I invest in a tenanted property?

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<p>The quickest path for first home buyers to purchasing a house in Greater Hobart is Brighton, according to a report released this week by Domain.</p>
<p><img src="https://gallery.mailchimp.com/b16c0b957ea98f662ab985606/images/b7d9b0c3-df73-4669-a275-9750aee501f7.png"></p>
<p>For those looking to buy a home, Greater Hobart is one of the most accessible capital cities in Australia with the lowest entry price for houses.</p>
<p>"However, when LGAs are considered, accessibility is driven by the affordable outskirts," the report said.</p>
<p>The LGA of Hobart takes approximately 6.3 years to save for an entry price home deposit, which is almost on par with the average time to save for a deposit in Greater Sydney (6.7 years).</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/6/29/Hobart%20Home.jpg" alt=""></p>
<p>Indicative of Brighton's price potential, 23 Andrew Street, Brighton (pictured above) the two bedroom, one bathroom house sold for $230,000 last month.</p>
<p>However even though Greater Hobart requires the shortest time to save of all the capital cities, this has increased by three months for houses and four months for units compared to last year, a result of a strong, growing market outpacing wage growth.</p>
<p><img src="https://gallery.mailchimp.com/b16c0b957ea98f662ab985606/images/965aee85-8e99-4381-9cbb-e52d9cb42f11.png"></p>
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Brighton ranked the quickest FHB path to house ownership in Greater Hobart: Domain

<html><body>
<p>EXPERT OBSERVER</p>
<p>The Commonwealth Bank of Australia reported its full year results last week.</p>
<div>Cash profit for FY2018 of $9.41 billion was down 4.7 per cent. </div>
<div> </div>
<div>But overall this remained a solid underlying result with a fully franked dividend of $4.31 per share heading the way of investors (up 2 cents or +0.5 per cent...thanks!). </div>
<div> </div>
<div>Increased funding costs impacted net interest margins adversely as expected.</div>
<div> </div>
<div>However, the group more than made these costs back in the financial year through changes in the funding mix and the repricing of investor and interest-only loans.</div>
<div> </div>
<div>In fact, the net interest margin was up 5bps over FY2018 to 2.15 per cent.</div>
<div> </div>
<div>Group loan impairment expense was also very low, at just 15bps.</div>
<div> </div>
<div>Note that the Group will adopt AASB 9 from 1 July 2018, and therefore total provisions will increase to reflect forward-looking factors as required by the standard (this adjustment will will pushed through opening retained earnings and therefore will have no impact on the current year income statement). </div>
<div> </div>
<div>'As if' earnings</div>
<div> </div>
<div>A number of one-off items including the $700 million AUSTRAC penalty reduced the statutory NPAT and cash NPAT.</div>
<div> </div>
<div>Excluding one-off items, cash profit was up by 3.7 per cent to above $10 billion.</div>
<div> </div>
<div>From the slide deck</div>
<div> </div>
<div>There were so may great slides in the full year preso that's it's impossible to know where to start, but here are just a select few. </div>
<div> </div>
<div>90+ day home loan arrears were notably up a bit year-on-year from 0.6 per cent to 0.7 per cent. </div>
<div> </div>
<div>Click to enlarge</div>
<div> </div>
<p> </p>
<div><img src="https://2.bp.blogspot.com/-NikJ1XTC2aM/W2obenRu8FI/AAAAAAAAra0/Bu_BuRukzkwr3D1deQO6h0gvC7zNKaT1ACLcBGAs/s640/CBA1.jpg" width="640" height="510" data-original-height="646" data-original-width="810"></div>
<p> </p>
<div>(Source: ASX: CBA)</div>
<p> </p>
<div>The year-on-year increase in arrears was mainly due to Western Australia and the Northern Territory, with changes elsewhere relatively benign. </div>
<p> </p>
<div><img src="https://3.bp.blogspot.com/-BPTlAOXy52Q/W2obesMjuDI/AAAAAAAAraw/-PYHhx5N81AQ0yr6tGOyTwhmdVcTyqm9gCLcBGAs/s640/CBA3.jpg" width="640" height="374" data-original-height="738" data-original-width="1257"></div>
<p> </p>
<div>The switching of interest-only (IO) loans peaked in September 2017. </div>
<div> </div>
<div>There is still plenty of scheduled IO expiry over the next two financial years, however, with the blue bars arguably representing the loans most at risk of arrears (being IO loans to investors). </div>
<p> </p>
<div><img src="https://1.bp.blogspot.com/-oV4exYg2jIY/W2obf3MIo_I/AAAAAAAAra8/NGaVAzwTFF8L3X27_sdVCv1GdNukH2T6wCLcBGAs/s640/CBA4.jpg" width="640" height="276" data-original-height="643" data-original-width="1490"></div>
<p><br>Home loan repayments in advance remain popular, though not for all borrowers.<br><br></p>
<div><img src="https://3.bp.blogspot.com/-zmTCKRUK6YA/W2ocvV3VTBI/AAAAAAAArbY/bIkgLBE06_Ak3f32pJmK2CLHaDUB__-mgCLcBGAs/s640/CBA7.jpg" width="640" height="330" data-original-height="750" data-original-width="1454"></div>
<p> </p>
<div>Finally, CBA optimistically notes that outside recessions or global financial crises modern housing downturns generally only last about 8 months on average (so on that basis, this one should be about done).</div>
<p> </p>
<div><img src="https://3.bp.blogspot.com/-baZfqx1F2yk/W2obgIOcIrI/AAAAAAAArbE/cfkEW3UjyasvCcohNfaoPV3nTBFD9zsgwCLcBGAs/s640/CBA6.jpg" width="640" height="330" data-original-height="796" data-original-width="1536"></div>
<p><br><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></p>
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WA home loan arrears still problematic for CBA: Pete Wargent

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<p>EXPERT OBSERVER</p>
<div>A double-shot Friday, with speeches from both Reserve Bank Governor Lowe and Assistant Governor Luci Ellis.</div>
<div> </div>
<div>Lowe's speech effectively confirmed that the inflation target is asymmetric.</div>
<div> </div>
<div>Although 'committed' to the 2 to 3 per cent inflation target, the next move in interest rates will be up, he noted, even though inflation is yet again set to fall below the target.<br><br>As energy and fuel price pressures ease the rate of inflation will likely drop over the second half of the year.<br><br>That's good to the extent that it eases pressure on household budgets, of course.<br><br>But, in the spirit of Mr. Micawber, it is hoped that eventually inflation will pick up again.<br><br>Amazon might have something to say about that as retail price deflation again rears its head.<br><br><strong>Rates on hold</strong>
</div>
<div> </div>
<div>Whether you agree or otherwise, at least it's been made clear: the cash rate is going to be set at 1.5 per cent for a long time!<br><br>Probably a very long time.</div>
<div> </div>
<div>Lowe also delivered an interesting interpretation of housing credit dynamics, noting that the slowing of the housing market had reduced demand for credit by investors, in doing so citing low mortgage rates as evidence that the reduced supply of credit has not been the main story.</div>
<div> </div>
<div>The plural of anecdote is not data, but that's not quite the feedback we've been getting from mortgage brokers. </div>
<div> </div>
<div>Semantics, maybe, given the reflexive nature of such things.</div>
<div> </div>
<div><strong>Luci on lags</strong></div>
<div> </div>
<div>Assistant Governor Ellis also presented an interesting speech on lags, showing how the unemployment rate has been improving (if not very much for the long term unemployed).</div>
<div> </div>
<div>No arguments there, although building permits are now falling away outside Melbourne (OK, and Hobart), while money growth is now at the lowest level in more than a quarter of a century. </div>
<div> </div>
<div>If those weak leading indicators persist, then eventually the economy will start to slow too...yes, it's those pesky lags again!</div>
<div> </div>
<div>Maybe that's already happening, according to the timeliest business surveys.</div>
<div> </div>
<div>The labour force figures released this week also showed that the growth in hours worked is already on the way down. </div>
<p> </p>
<div><a href="https://3.bp.blogspot.com/-kDmz34Ipxs0/W3dJwWlfd7I/AAAAAAAArlU/3SWaE5U_PZwsGrTrZ21uEB5LO6qLF99oACLcBGAs/s1600/a1.jpg"><img src="https://3.bp.blogspot.com/-kDmz34Ipxs0/W3dJwWlfd7I/AAAAAAAArlU/3SWaE5U_PZwsGrTrZ21uEB5LO6qLF99oACLcBGAs/s640/a1.jpg" width="640" height="378" data-original-height="795" data-original-width="1342"></a></div>
<p>Long story short, inflation is low because the economy remains well below its full capacity.</p>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></div>
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