The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

Joel Robinson

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.

Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for <a href="https://www.apartments.com.au/new-apartments/cove-on-ourimbah-40-56-ourimbah-road-mosman-nsw-2088">Cove on Ourimbah</a>, a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.

The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.

Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.

<img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" />

Doroch Architects said the building had been designed to reinforce Mosman's established character.

"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.

The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.

The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.

The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.

&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a>

&nbsp;

First look: Another major apartment proposal signals Mosman's development boom

A new State Significant Development Application (SSDA) could reshape a prominent vacant site in Gosford's CBD, with Ming Tian Real Property proposing a mixed-use precinct that combines affordable housing, retail activation and a new public plaza.

The proposal for 43-45 Beane Street and 2 Keevers Lane would deliver a <a href="https://www.apartments.com.au/new-apartments/43-45-beane-street-gosford-nsw-2250">two-building development</a> comprising a 26-storey residential tower and a five-storey affordable housing building above ground-floor commercial space. A key focus of the project is the delivery of dedicated affordable housing alongside new public domain improvements designed to transform Keevers Lane into a more active urban destination.

Designed by <a href="https://www.apartments.com.au/architects/tony-owen-partners">Tony Owen Partners</a>, the development would provide 130 apartments, including 20 affordable housing dwellings managed by a registered community housing provider for at least 15 years. The market housing component comprises 110 apartments across a mix of one, two and three-bedroom residences, while the affordable housing includes six one-bedroom, 13 two-bedroom and one three-bedroom apartment. The proposal also incorporates 416 sqm of ground-floor retail, three basement levels accommodating 140 car spaces, 42 bicycle spaces, communal open space and extensive landscaping.

<img alt="First look: Ming Tian Real Property plans landmark affordable housing tower for Gosford city centre" data-entity-type="file" data-entity-uuid="9b858791-9060-4ee7-9178-44cb9e640a85" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Beane%20Street%20b_0.png?VersionId=_jbY0mqPEs7.jBZxozR7d6T4u85FoPmb" />

The affordable housing component has been distributed across both buildings, with four apartments located within the main tower and a dedicated five-storey building delivering a further 16 affordable homes. The project also includes 12 adaptable apartments and 24 dwellings designed to Silver Level Liveable Housing Guidelines.

The architectural design draws inspiration from Indigenous storytelling.

"The design is based on the indigenous motif of the Rainbow Serpent," Tony Owen Partners said in the Design Verification Statement.

"The Rainbow Serpent is a traditional totem of coastal eastern Australia. It represents natural forces, creation, change, and rebirth and is often associated with bodies of water. This motif can be seen in the undulation of the balconies rising on the building," Tony Owen Partners said in the Design Verification Statement.

Beyond the residential offering, the proposal seeks to revitalise the surrounding public realm, particularly Keevers Lane.

"The ground floor streetscape includes a commercial and dining precinct which will significantly improve the amenity of the area. This strategy transforms a currently inhospitable laneway into a thriving centre of urban renewal and day and night time activation to compliment the new adjoining UNC facilities," the architects said.

<img alt="First look: Ming Tian Real Property plans landmark affordable housing tower for Gosford city centre" data-entity-type="file" data-entity-uuid="36b0ca6b-af15-424c-81db-9f3049c07b0c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Beane%20Street%20podium.png?VersionId=QCAv7bCitrg3zIGZUHI2z_HR8qVfKbp1" />

The Environmental Impact Statement notes that the project aims to "improve the provision of diverse housing options within Gosford City Centre, enhancing the mixed-use precinct by delivering high quality residential development, whilst concurrently providing a diverse range of housing choices through the provision of affordable housing, which is in growing need within the Gosford City Centre."

The site occupies approximately 2,070 sqm in the Gosford city centre, around 250 metres from Gosford Railway Station and within walking distance of Gosford Hospital, Mann Street's retail precinct and the University of Newcastle's Gosford campus currently under construction. The currently vacant site previously received approval for a lower-scale residential development, with the new proposal leveraging the NSW Government's in-fill affordable housing pathway to increase density while introducing dedicated affordable housing.

First look: Rainbow Serpent inspires bold new Gosford apartment tower

Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

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

<html><body>
ASIC has warned Australian investors considering establishing their own self-managed superannuation fund (SMSF) to be aware of the potential risks and downsides of such a strategy.
They said many Australians set up SMSFs that are inappropriate for their circumstances.
ASIC has identified eight "red flag" situations which, together or in part, would make it extremely unlikely for an investor to gain any advantage from using SMSFs to create and safeguard their intended retirement lifestyle.
Australian Tax Office figures reveal that as at 30 June 2019, there were 599,678 SMSFs in Australia holding nearly $748 billion in assets, making total assets held in SMSFs larger than those in either industry ($719 billion) or retail ($626 billion) funds.
ASIC Commissioner Danielle Press said, "ASIC believes that consumers are all too well aware of the potential benefits that might stem from using a SMSF, but are not equally alive to the considerable risks and responsibilities that come with the deal.
"SMSFs may be an attractive option for investors wanting more control over their superannuation investment strategy, but it requires real skill, care and diligence to manage your own superannuation. SMSFs are not for everyone simply because not everyone can meet the significant time, costs, risks and obligations associated with establishing and running one."
ASIC previously tracked and analysed member experiences in using an SMSF, and whether advice providers were complying with the law when providing personal advice about setting up an SMSF (refer Background). The research identified the "red flag" indicators that suggested when an SMSF may not be appropriate for an investor.
"Our research found that SMSFs are not suitable for members with a low fund balance, particularly where they have limited ability to make future contributions. This is important because consumers starting off with a low balance need to be aware that they may not be in a better financial position in the future by holding an SMSF compared with investing in an APRA-regulated fund," Ms Press said.
ASIC"s research also found that SMSFs are not an appropriate investment option for people who want a simple superannuation solution, particularly if they have a low level of financial literacy or limited time to manage their own financial affairs. On average, SMSF trustees spend more than 100 hours a year managing their SMSF.
"Where people have limited investment decision-making experience or prefer to delegate decision-making to someone else, they should carefully consider if an SMSF is right for them. As the trustees of their own fund, SMSF investors must remember that they are responsible for their fund"s compliance with the law, even if they pay a professional to help," Ms Press said.
</body></html>

j.ballantyne1990-6AQqhLzZaK

ASIC identify the 8 red flags of SMSF's

<html><body>
Self-managed super funds (SMSF) have increased their weighting to low-risk cash and term deposits as well as listed shares, but commercial property remains a substantial part of their portfolios.
The latest report on the sector from the Australian Tax Office (ATO) for the 2010-11 tax year shows declines in residential, non-residential property and listed property trusts investments as a proportion of assets held in SMSF portfolios.
SMSFs directly invested 78% of their assets, mainly in cash and term deposits and Australian-listed shares (a total of over 60%). While smaller SMSFs tended to favour cash and term deposits, larger SMSFs had a greater tendency to invest in listed shares, notes the ATO in its report.
“This is the first time over the three years (going back to 2008-09)  in which holdings of these two asset types (cash and term deposits and shares) have shifted in the same direction,” says the ATO.
“In turn there were small shifts away from all the other assets represented with a sustained shift away from listed trusts occurring over the three years.
“The data confirms the SMSF sector responds to changing economic circumstances.”
 
Click to enlarge
<a href="/images/stories/2012/12/absdec20.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/absdec20thumb.gif"></a>
Despite the general shift away from property, bricks and mortar remains a substantial part of SMSF investment strategy, with commercial property representing 11% of portfolios and residential property making up 3.5%.
In dollar terms, SMSFs have invested $48 billion in commercial property, $14.7 billion in residential property, $17.8 billion in listed trusts and $37.2 billion in unlisted trusts.
Listed shares account for nearly a third of SMSF assets (32%), followed by cash and term deposits (29%).
Listed trusts make up 4% of portfolios, and unlisted property trusts 8.8%. Many of these are property-related.
Click to enlarge
<a href="/images/stories/2012/12/absdec201.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/absdec201thumb.gif"></a>
The latest report shows that growth in SMSFs numbers continues.
Between the years ended June 2008 to June 2012 SMSF numbers have grown from almost 376,000 to over 478,000, representing growth of over 27%.
There are 913,550 members in the SMSF sector, almost 8% of roughly 11.6 million members in Australian super funds.
Collectively they hold $439 billion in assets.
Over this four-year period, the average assets of SMSFs grew by 12% to $963,000.
</body></html>

lschlesinger-FZcF9M3vE6

SMSFs turn to low-risk deposits and shares but commercial property still big part of portfolios: ATO report

<html><body>
How to best use your self-managed super fund to invest in property
How can the astute property investor combine the benefits of low tax in super and the benefits of leverage?
Superannuation’s prime responsibility is to provide a member with retirement income. With increasing regularity people are seeing their superannuation funds declining either from poor investments or spiralling costs. To get more control many people are moving to self-managed superannuation.
Since mid-2007 self-managed superannuation funds have had the ability to invest in property, with bank debt.  Many see investing in property as less volatile, unlikely to reduce in value over time and importantly as an asset that is in limited supply and one that everyone needs. Thus market values (capital and rents) are more likely to grow over time.
Property in a SMSF allows investors to accumulate property using bank debt that will be tax free in pension stage for both rental income and any capital gains on sale. At the same time, it allows the full benefits of negative gearing at the individual’s marginal tax rates while still working. This is like having multiple tax-free principal places of residences. Who says you can’t have your cake and eat it too?
Many people argue that with leveraged property in a super fund there is less likelihood of an overall loss of superannuation, as the ability to borrow to increase the asset size allows more funds to be accumulated and grow in a less volatile asset class than maybe shares.
 
<hr class="system-pagebreak">
Four key steps to maximising your property investment through your SMSF
 
With the ability to negatively gear property in superannuation while still at work against your personal tax, more people are looking at this strategy to improve their lifestyle in retirement.   This ability to buy property, which will be tax free in your retirement, can greatly boost your future income. However, many people take shortcuts that reduce the upside of this strategy and unfortunately,  in some cases, unintended costs are triggered. To maximise the strategy, four key steps are necessary.
<ol>
<li>
Talk to your specialist SMSF accountant or financial planner to ensure the property you are looking at is allowable. In summary, borrowings can be used to purchase, repair, and fund interest expenses. Cosmetic renovations (not an improvement) are permitted with borrowings, and while you can improve a property by adding floor space, granny flat, etc, this must be done using SMSF cash. Off-the-plan purchases are allowable, but not the purchase of land and the subsequent construction of the building. During this talk you can discuss the rollover from other super funds and any insurances etc., you may need.</li>
<li>
Get pre-approved finance. In many instances the banks will require a financial planner to sign off on your SMSF strategy, but this is normally a relatively simple thing. You may need to top up your super if you do not have sufficient deposit etc., but you can lend money to your SMSF from say cash or equity from outside super. As this is not a super contribution, there is no limit on the amount, and it can be repaid prior to retirement.</li>
<li>After steps one and two are complete you can then put in place the paperwork. Caution is needed, as not all suppliers of the required documents are equally skilled. If you are lending money to your SMSF then you need these documents, and it is also advisable to complete additional documents as in many states a future second stamp duty on the property may be payable if all required documents are not completed.</li>
<li>Now the fun stuff: go out and secure the property.</li>
</ol>
 
The above may look intimidating, but it is just administration that your specialty advisor will help you with and for most people, it’s no more daunting than the process of purchasing the property; it’s simply just some “extra paperwork”. The ability to leverage property in super can be very beneficial, but ensure you follow these relatively simple rules to maximise your benefits.
 
<hr class="system-pagebreak">
How to use your super to buy a tax-free investment property
 
This tax pearler is normally associated with the family home, but the federal government eliminated all taxation within superannuation when in the pension stage many years ago.  With the ability to now borrow in superannuation, the astute investor can now leverage his or her superannuation and borrow to purchase property that will become tax free.
While working and paying tax the investor can negatively gear a good capital growth property out of his or her pre-tax income in the same way as if it was purchased outside super. The 9% superannuation guarantee can even be used to fund the negative gearing. The big difference occurs after age 60 when the property in super will attract no tax on rental income or capital gains on sale. Payments from the super fund to the investor are also tax free, and in fact it does not even need to be itemised in the individual’s personal tax return. Outside of super the cashflows would be fully taxable on both the rental stream and any capital gains. This superannuation treatment allows the individual to effectively have the taxation benefits as if they had multiple family homes.
Many people are sceptical about investing in super and argue they are too young, the rules may change and it is too confusing. All valid concerns, but the primary aim of all investors is to make money, and this task is made easier if no taxes are paid. An investment property needs time to do “its thing”, i.e. capital growth, so even the younger generations can benefit. How good would it be to have some of your investments in the “pay no taxes” basket?
This strategy can in some instances apply even before age 60 and has the added benefits of creating an additional land tax threshold and improved asset protection. The benefits are many.
Ken Raiss is a certified accountant and director of <a target="_self" href="https://www.chan-naylor.com.au/" title="Chan &amp; Naylor ">Chan &amp; Naylor</a> national accounting firm. Ken’s experience lies in working with large publically listed multi-national companies, which gives Ken excellent insight into international market trends. Ken specialises in educating “mum and dad” property investors and small business owners with advice on wealth creation, asset protection, taxation, superannuation and compliance. 
These articles appeared on Property Observer throughout 2012.
 
</body></html>

kenraiss-JsVyb3YKka

Investing a property through your self-managed super fund: Three of the best of Ken Raiss

<html><body>
A growing number of self-managed super fund investors are using related-party loans to buy property, but they should tread carefully, according to Heather Gray, a partner at DLA Piper and chairwoman of the Superannuation Committee of the Law Council of Australia.
Related-party loans are those provided by a member of the fund or by a family member and can seem an attractive option SMSF investors providing funding at a higher loan-to-value ratio (LVR) and lower interest rates than those provided by a bank.
But Gray says the issue of related-party loans came up very often for advisors in relation to “compliance issues”.
Her warning comes as Australian National Audit Office (ANAO) reports of the continuing growth of the SMSF sector, with 32,875 new funds registered in 2010-11 compared with 29,578 in the previous financial year, taking the total number of SMSFs as of June 2011 to 442,528 with 841,283 members.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/06/anao.gif" rel="shadowbox"><img src="/images/stories/2012/06/anaothumb.gif"></a>
Gray says the ATO views related-party loans in the same way it views investments made into the fund that are not at arm’s length.
“If the interest rate is too low the ATO may look at the deal and say, ‘This is a sham’ – it’s not really a loan but a contribution and just a way of getting money into the fund without breaching the contribution cap,” Gray told delegates at the 2012 Institute of Chartered Accountants in Australia’s Business Forum.
“You would then be taxed unfavourably because you exceeding the contribution cap and all the advantages of borrowing through your SMSF [to acquire property] would be lost.”
Conversely, if the interest rate is too high the ATO may rule that it breaches the sole purpose test through providing a “non-retirement” benefit to the members.
In nearly all cases, Gray says when the ATO has targeted a fund it has due to the fund not satisfying the sole-purpose test.
The sole-purpose test requires that an SMSF be maintained to provide benefits to members upon their retirement, or their dependants if the member dies before retirement.
According to the ANAO, since 2004–05, the number of SMSFs has increased by 64%.
SMSF sector is the largest superannuation sector by number of funds, and in 2011 held 30% of all superannuation assets ($407.6 billion).
</body></html>

More SMSFs borrowing from trust fund members to acquire property creating compliance issues

<html><body>
Continued legislative tinkering to the superannuation system is forcing individuals <a href="https://www.smartcompany.com.au/superannuation/052307-government-warned-to-back-off-on-proposed-changes-to-smsfs">to abandon super and self-managed super funds</a>, leading to $16 billion not being placed into SMSFs, according to research published this week.
The research by the SMSF Professionals Association and Russell Investments found that as a result of lower contribution caps and continued changes to super, 54% of SMSF trustees would change the decisions they are making currently about their strategies towards their retirement.
Launching the research, SPAA chief executive Andrea Slattery said, of those who would change, 75% said they would invest in things other than super.
“That would be outside of super, not inside of super, and so that leads towards $16 billion not being placed in the superannuation system in this last 12 months,” she says.
“It shows there are big numbers in the SMSF sector which are mainly professionals, small business and the self-employed that are not putting money into super and if they are not putting it into super they are putting it elsewhere or spending it.”
Slattery says negative gearing has been the main benefactor of the movement out of superannuation, with confidence amongst SMSF trustees low.
In July last year the amount of pre-tax income people over the age of 50 may put into super each year was halved to $25,000.
Trustees now have to deal with legislative risk, according to Alan Schoenheimer, chief executive of Russell Investments in the Asia Pacific.
“I think trustees are learning a new risk called legislative risk, which they used to ignore in the past but now it is becoming clear this is a major dilemma,” he says.
“You put your money into the system and once it is in it is locked in, and you can’t reverse that decision, and now it is there for the government to raid.”
Schoenheimer says 10 or 15 years ago people were encouraged to contribute more than the required amount into superannuation and they were given incentives to do that and told it was a good thing.
“It is in a system where you can’t hide it by the way, it is there for all to see and Australian Prudential and Regulation Authority or the Tax Office or someone have your statistics and can look at it all the time and you can’t hide it out, you can’t get it out and all of a sudden the rules change.”
“I would have thought there were a lot of angry people right now.”
This article first appeared on Smart Company.
</body></html>

cwaters-YrtBR88nBe

Government tinkering with superannuation proving costly

<html><body>
ASIC is considering increasing its powers to include oversight of property investments schemes recommended to self-managed super funds ahead of its report out on property spruikers targeting this sector due out in April.
The corporate watchdog currently has no responsibility for the oversight of direct property investments, a sector that is entirely unregulated.
In November ASIC said it was <a target="_blank" href="/news">undertaking limited surveillance” of financial advisers and accountants </a>over concerns that property spruikers are encouraging investors to set up self-managed super funds purely as vehicles for "dodgy" property investments.
Speaking before a Senate estimates hearing in Canberra last week, ASIC chairman Greg Medcraft, said it was warning investors at the moment “about some of the more aggressive spruikers we are seeing in this area”.
“It would cause us a lot of concern if this became a preferred vehicle for dodgy property spruikers to get back in the market.
“We do have concerns that less reputable property spruikers [are] targeting SMSFs to encourage them to invest, perhaps inappropriately, in direct property,” he added.
The estimates hearing was attended by the Australian Financial Review, which noted that property spruikers targeting self-managed super funds operate with the least amount of oversight and take as much as a 7% commission – around $35,000 – per property sold.
Around 85% of licensed financial advisers operate under the control of bank or a regulated entity like AMP and are not allowed to advice on direct property investments, but a small but significant minority do not operate under any form of bank oversight.
According to Property Investment Professionals of Australia (PIPA) a not-for-profit group lobbying the federal government to bring property investment advice into a regulatory framework, there are more than 80,000 professionals, employed either directly or indirectly within the property investment industry, giving opinions and advice to consumers.
ASIC, in speeches and submissions in the last 12 months, has signalled that it will at the very least look to improve the information available to consumers about setting up a self-managed fund and the risks associated with different investments.
Speaking before a parliamentary committee in September ASIC, Medcraft remarked that ASIC was limited in its oversight of financial advisors and restricts regular checks to the top 20 financial advisory firms to once ever 1.7 years with much wider gaps for smaller firms.
“We are not resourced to be looking at everybody, and that is a very important message. That is why education is really important. Australians are proactive in getting educated and understanding what they should be doing,” he said.
In July last year, ASIC commissioner Peter Kell told the Association of Financial Advisers National Roadshow the key message ASIC wanted to emphasise is that SMSF structures are not suitable for all investors including the need to formulate an appropriate investment strategy and consider alternatives to setting up a self-managed super fund.
</body></html>

ASIC may expand powers to cover SMSF property investment

<html><body>
Superannuation fund bosses have warned that funds could flow out of superannuation accounts following <a target="_blank" href="/news">government changes announced last week</a> that will see income streams above $100,000 taxed at a rate of 15% from July next year.
Alex Hutchison, chief executive at Energy Industry Super chief executive, said people with higher superannuation balances might consider other options outside of super such as property.
"More people will change their affairs to negatively gear and go into property," he said as part of a Money Management roundtable.
John Livanas, chief executive of public sector fund State Super warned of a “huge risk of outflows” from super as happened when the superannuation surcharge was introduced in 1996.
“The moment confidence reduces [in the super], the question as to whether to commute pensions come into question,” Livanas.
Also participating in the Money Management roundtable, Tom Garcia, chief executive of the Australian Institute of Superannuation Trustees, held similar concerns.
The most recent APRA figures show that total estimated superannuation assets increased to $1.51 trillion in the December 2012 quarter, a 14.6% increase over the 12 months to December 2012.
As of December 31 2012, self-managed superannuation funds held the largest proportion of superannuation assets accounting for 31.5% of assets with $474 billion compared with $410 billion at the start of 2012.
There were 496,000 SMSF funds at the end of the December 2012 quarter up from 460,000 at the start of the year.
Retail funds account for 26.4% of total super assets. Industry funds account for 19.5% of total assets, public sector funds 15.7% and corporate funds 3.8%.
</body></html>

Funds could flow out of super and into property following government changes: super bosses

po-LsXgBTHBmX

Your SMSF could be hurt by proposed super and pension changes

<html><body>
The Australian Security and Investments Commission’s goal to improve the standard of advice being given to prospective self-managed super fund trustees, has been welcomed by the SMSF Professionals’ Association of Australia (SPAA).
This includes ensuring SMSF advisers have competencies and skills to better inform potential trustees about the suitability of SMSFs to their circumstances, said CEO Andrea Slattery, while outlining her stance on advisor training and education in SPAA’s submission to ASIC.
The SPAA represents professionals providing a range of services in the SMSF field. It is an advocate for the highest professional standards and competence to ensure SMSF trustees receive the best possible advice.
“In line with this, SPAA has consistently argued that the proposed updated training of advisors should include a specialist SMSF topic if advisers wish to provide advice on SMSFs. This is the reason SPAA has built an SMSF profession,’’ Slattery said.
“We are surprised that ASIC had not suggested an additional, specific topic, in light of recent statements and research by them showing concern for advice practices.
“Similarly, it is surprising ASIC has not sought specific SMSF competencies in the updated RG 146 (regulations) when it has concerns regarding the quality of disclosures made to potential SMSF trustees about the risks of being a trustee.
“We believe that including an SMSF topic in RG 146, and recognising it as a specialist area of superannuation advice, will increase professionalism and understanding among financial advisers who advise on establishing and operating SMSFs leading to increased consumer protection.”
Slattery says that improving SMSF competencies towards potential SMSF trustees would be a significant factor in improving SMSF disclosures. “In particular, SPAA’s SMSF professional accreditation program allows consumers to seek specialist SMSF advice to meet their needs,” she said.
<a target="_parent" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
</body></html>

staylor-63KgDrKwoY

SPAA backs ASIC plan to strengthen advice standards

<html><body>
Both the Reserve Bank and the government have hinted at a crackdown on the self-managed superannuation sector, with both entities saying they are concerned about the number of property investments being made in the industry.
<a href="https://www.smartcompany.com.au/superannuation/055187-asic-issues-warning-on-property-advisors-dabbling-in-smsfs">Corporate regulator ASIC has been worried</a> about the same thing for months – but the industry says there’s no reason to panic.
SMSF Professionals’ Association of Australia (SPAA) chief executive Andrea Slattery said the “problem” is slightly overblown.
“The numbers show investments in property within SMSFs break down to about 80% in commercial and 20% in residential,” she says.
“From the SPAA’s point of view we think the position has been overstated that SMSFs may be supporting growth there … those numbers are so small to have any ability to influence prices.”
In its latest Financial Stability Review, the RBA said legislative changes have meant SMSFs can borrow money to invest in property – which has led to an increase in this type of activity being spruiked by advisors.
“The sector therefore represents a vehicle for potentially speculative demand for property that did not exist in the past.”
The risk, it said, is that these investments could influence property prices.
“One risk of the increase in property investment by SMSFs is that at least some of it is a new source of demand that could potentially exacerbate property price cycles,” it said.
The warning is timely – it comes as property investors and analysts across the country are speculating about the prospects of a property bubble, given relaxed lending standards and historically low interest rates.
SMSFs have been permitted to borrow money to invest in property for the last six years.
Meanwhile, Assistant Treasurer Arthur Sinodinos has told the Australian Financial Review the new government wants to keep track of SMSFs to ensure they don’t have advantages over other funds.
“In the super space we need to make sure it’s a level playing field and that you get appropriate competition between the different funds, the industry funds, the self-managed super funds, and that’s the starting point,” he said.
SMSFs have become increasingly popular since the global financial crisis, as they’ve grown a reputation for being safer investments. SMSFs are widely used by business owners.
But Andrea Slattery says there isn’t much to worry about, emphasising the government is simply conducting a review it pledged before the election.
“The SPAA is not worried the government is concerned about a level playing field … they are interested in reviewing the financial services system in general.”
However, there has been some concern over property investments. The Australian Securities and Investments Commission has consistently said over the past year it will continue cracking down on dodgy SMSF advisors who promise returns in property.
Slattery says she is also concerned – but that the overall ratio of property investments doesn’t warrant panic.
“It’s important for people to be cautionary, but it’s only a small number of SMSFs which are taking out loans for property.
“We’ve been concerned about spruikers … but we note there has also been little take-up of all the hype around the spruikers, and so we encourage consumers to seek professional advice on any matters.”
 
<hr>
 
This article originally appeared on <a href="https://www.smartcompany.com.au">SmartCompany</a>.
</body></html>

Latest Guides

Help to Buy Scheme: What first home buyers in NSW need to know

News

Editor's Picks

News

Developments

New apartments

New townhouses

News

Latest Guides

Help to Buy Scheme: What first home buyers in NSW need to know

News

Editor's Picks

Receive the latest news stories to your inbox

News

Developments

New apartments

New townhouses

News