ANZ believes the Reserve Bank is in no rush to move again.

Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.

That positioning, in ANZ’s view, makes a June rate hike unlikely.

The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.

The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.

As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.

Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.

Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.

The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.

Ultimately, most members leaned toward the inflation side of that equation.

Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.

That’s important.

While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.

ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.

That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.

However, where ANZ diverges from the RBA is on the outlook for activity.

The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.

ANZ is less convinced.

The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.

That divergence matters because it shifts the balance of risk.

If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.

It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.

The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.

On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.

For now, the Board is choosing to wait.

But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.

In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.

For borrowers, it reinforces the reality that relief is not imminent.

And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.

According to ANZ, it is a balance that is becoming increasingly difficult to maintain.

Joel Robinson

RBA to hold rates for "prolonged period" rather than hikes: ANZ

<a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.

The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.

<a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.

[smartcode_project:default project_id=135663 project_image_fid=360477]

The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.

Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.

VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.

“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.

[smartcode_project:default project_id=135663 project_image_fid=360505]

The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.

The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.

Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.

[smartcode_project:default project_id=135663 project_image_fid=360473]

BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.

The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.

<a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.

The first stage of Cumulus Grand Villas is targeting completion in 2026.

[smartcode_project_cta:default project_id=135663]

VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.

The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.

For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.

Waverley Council’s response has been to move early, and decisively.

Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.

<img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" />

At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.

That repositioning is built around four key ambitions.

The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.

The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.

Oxford Street Mall sits at the centre of that shift.

Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.

&nbsp;

The second ambition is to transform Bondi Junction into a world-class interchange.

Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.

The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.

The third ambition focuses on greening and open space.

One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.

The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.

The fourth ambition is perhaps the most important from a development perspective: growth that gives back.

Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.

New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.

The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.

Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.

It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.

Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.

Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.

The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.

This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.

Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.

That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.

&nbsp;

&nbsp;

&nbsp;

If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.

“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

Toorak's dress circle St Georges Road, home to some of the city's priciest homes, is set for a rare new apartment development.

Blood Diamond Group, an entity tied to Tina Brandi, wife of David Brandi who has been a prolific bidder on The Block over the years, has filed plans for an ultra-exclusive development across an amalgamated 3,662 sqm site at <a href="https://www.apartments.com.au/new-apartments/104-106-st-georges-road-toorak-vic-3142">104 and 106 St Georges Road</a>.

The proposal would replace two existing homes on the riverfront site with a five-level apartment building cascading down the steeply sloping land toward the Yarra River. Designed by Charles Wright Architects, the development has been carefully shaped around the site’s topography and river environs, with the upper levels stepping back to reduce visual bulk from both St Georges Road and the Yarra corridor.

Planning documents describe the proposal as “a site layout and building typology that is consistent with the emerging character of the area and which provides exceptional amenity for future residents without compromising that of neighbouring properties.”&nbsp;

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ea19a17e-7528-4fa8-b727-05f2f7c025e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20a_0.png?VersionId=rZ2IjdoUL_UrRl1sZ4wZHnQXbYUaEmUQ" />

The scheme comprises 12 apartments, including 10 three-bedroom residences, one one-bedroom apartment, and a substantial split-level five-bedroom penthouse. A 624 sqm communal rooftop terrace will crown the building, while three undercroft levels embedded into the hillside will accommodate apartments and basement parking.

The design leverages the site’s dramatic northern outlook across the Yarra River, with living areas and balconies oriented toward the water. A central atrium running the full height of the building is intended to draw natural light deep into the residences and improve internal amenity.

Landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo Design &amp; Landscape</a> will play a major role in softening the built form, particularly along the river edge where significant setbacks have been introduced. The proposal includes a minimum 30-metre setback from the Yarra River boundary, preserving a substantial landscaped buffer between the development and the waterway.

While a mature English Oak near the front of the site is proposed for removal, the plans retain a large English Elm closer to the riverfront, alongside other established vegetation in the lower section of the property.

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ed3bf19b-5bc7-482f-bde7-41f709a13c3a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20b.png?VersionId=SG_kBGu4rOaSPY8FtVcmPJfSCrstuOfg" />

Architecturally, the building adopts strong horizontal forms with expansive glazing and curved balcony edges facing the river. Planning documents note the upper levels “adopt a receding form” to ensure the building responds appropriately to the Yarra River environs overlay controls.&nbsp;

The surrounding streetscape is characterised by large contemporary homes embedded into the hillside, many presenting as modest one or two-storey forms to the street before expanding toward the river frontage below. The planning report notes this established pattern heavily influenced the massing strategy for Toorak Pavilion.&nbsp;

Until the recent sale of the landmark Clendon Road mansion Coonac for around $130 million, St Georges Road held the state's most expensive home, the $80,000,088 derelict "Ghost House" mansion that was bought by crypto king Ed Craven.&nbsp;

Blair House, also on St Georges Road, sold for $74.5 million in 2022.

First look: Toorak Pavilions slated for dress circle St Georges Road

Six months after a development site on Kangaroo Point’s Shafston Avenue sold for $6.55 million, plans have been lodged for a 23-storey apartment tower.

A company named JMT Mega Capital, understood to be interstate investors when the 1,222 sqm double block traded late last year through Patona Property, is proposing an 84-apartment development in place of the existing low-rise buildings.

The slender tower at <a href="https://www.apartments.com.au/new-apartments/212-220-shafston-avenue-east-brisbane-qld-4169">212–220 Shafston Avenue</a>, overlooking the Brisbane River, has been designed by <a href="https://www.apartments.com.au/architects/aplus-design-group">Aplus Design Group</a>. It will comprise a mix of one-, two- and three-bedroom apartments above six basement levels, topped by rooftop resident amenities.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="7e17ba9e-553e-42ef-92b6-22081671521a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_3.png?VersionId=hlVUf99vrOjUs.vhQs0qV0DhOncUy9T8" />

The development has been designed as a vertically articulated tower with recessed balconies, curved façades and planted edges intended to soften its scale within the evolving Shafston Avenue skyline. In the submitted Urban Design Report, Aplus Design Group said the tower had been “shaped with a slender vertical expression, articulated façades, recessed balcony zones, integrated planting and a clearly defined podium relationship, helping to reduce perceived bulk and create a more elegant contribution to the Shafston Avenue streetscape and broader Kangaroo Point skyline.”

The scheme comprises 84 apartments, including 25 one-bedroom units, 34 two-bedroom apartments and 25 three-bedroom residences. A total of 104 car spaces are proposed across six basement levels, including resident, visitor and accessible parking.

Residents will have access to rooftop communal open space and shared amenities, while the development also incorporates deep planting zones and subtropical landscaping throughout the podium and tower levels. The project includes 35 per cent communal space coverage across the site and a 17.5 per cent deep soil zone allocation to support urban greening outcomes.

The application exceeds the mapped building height under the Kangaroo Point Peninsula Neighbourhood Plan and is being assessed under Brisbane City Council’s impact assessment pathway. The design team argues the additional height is supported by the site’s strategic inner-city location, existing high-density zoning, and proximity to transport and employment hubs.

“The design has been developed to make better use of a well-serviced urban site within an established high-density residential setting, while improving the street presentation and overall quality of the public realm interface,” the report states.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="1ab44b1e-ff45-4bf3-8da8-8aa0cd79db33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_10.png?VersionId=tSxeGekZOqj1e9g3PEn_yFoC3taKDp3U" />

The proposal adds to a growing pipeline of apartment developments reshaping Kangaroo Point ahead of the 2032 Brisbane Olympic Games, with demand continuing to strengthen for new housing supply in well-connected inner-city precincts.

Mosaic has nearly sold out its under-construction <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford by Mosaic</a>&nbsp;and <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a>,&nbsp;while Pikos recently completed <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye Residences</a> nearby. Pikos is also delivering <a href="https://www.apartments.com.au/new-apartments/gaia-kangaroo-point-108-lambert-street-kangaroo-point-qld-4169">Gaia</a>, over 230 three- and four-bedroom apartments on Lambert Street.

First look: 23-storey Kangaroo Point apartment tower planned for Shafston Avenue riverfront precinct

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

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

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

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First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

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

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Like a brand new car, new apartments and contents depreciate in value almost immediately but many investors are not aware of the depreciation benefits they are entitled to claim.
The Australian Tax Office enables investors to cover part of the purchase price by allowing them to claim depreciation on certain items like fittings and fixtures at the end of every financial year.
Although there is no percentage that fits all off the plan purchasers, Matusik Property Insights director Michael Matusik says up to 60% of the built cost of a new apartment can be tax-deductible over time.
Purchasers of off the plan apartments can take the contract of sale to a quantity surveyor to have a depreciation schedule put together, as the contract will detail inclusions such as price, size of the unit and size of the building.
A tax depreciation company can also inspect a property to determine the current value of every item and will then calculate how much value each of those items will lose every year for up to 40 years.
However, Multifocus Properties and Finance chief executive officer Philippe Brach says to get a definite schedule that an accountant can use, the property must be settled as the settlement acts as the starting date for the depreciation entitlement.
The depreciation report is submitted at the end of every financial year and is allowed to be back dated by up to two years.
BMT Quantity Surveyors director <a href="/expert-insights/finance/depreciation-tax-deduction-opportunity-for-investors-as-the-block-sky-high-reality-television-series-turns-serious">Brad Beer says on average investors can claim between $5,000 and $10,000</a> as a first full-year deduction.
Brach says for the first few years, depreciation will fall away rapidly but is largely compensated by rising rent revenue in keeping the cash flow constant.
“After about 10 years, depreciation will stop declining but rent will still keep rising, therefore the cash flow starts increasing,” says Brach.
Property investor <a href="/expert-insights/finance/the-benefits-of-depreciation-or-how-wear-and-tear-can-be-to-your-advantage">Cameron McEvoy</a> says the amount an investor can claim is always much higher in the first few years.
“It goes without saying that the figure for say year three, will be much higher than year 27.
“This is due to the gradual degrading value of items.
“More often that not, properties that are one to five years old have the most depreciable potential,” says McEvoy.
Brach advises that when looking at potential investment properties, fittings and fixtures should be taken into consideration when short-listing apartments as they will give high depreciation in the early years.
Off the plan buyers should be able to obtain a depreciation schedule from the developer free of charge to help them work out their numbers properly but if one is not available, a report can be constructed for around $300 to $1,000 through a depreciation specialist.
“Without a schedule, your cash flow may be way out of reality and you investment decision will be wrong,” says Brach.
The one-off report fee is also tax deductible.
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ntrotman-Et3xWpamVh

How to: Check your depreciation entitlements

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Many home buyers are eligible for government support through first home owner schemes, particularly those buying off the plan apartments, but each state has their own schemes in order to boost state construction.
Here is a breakdown of the current grants and incentives available in Victoria, New South Wales, South Australia and Queensland.
The New South Wales government has the New Home Grant scheme, which offers $5000 for off the plan homes valued at $650,000 or less and is available to both investors and owner-occupiers.
An application for the New Home Grant must be made within three months of the first signed contract and is paid as credit on the purchaser’s stamp duty.
If the stamp duty tax is greater than $5000, the difference between the duty and the $5000 grant is to be paid by the buyer, but if the stamp duty is under $5000, the grant is used and the buyer is not out of pocket.
The grant can be applied for more than once on multiple properties, however each property must be new and only one grant will be issued per property.
The New South Wales government also offers a First Home Owner grant of up to $15,000 for newly built or bought homes valued at under $650,000. The property must be the intended place of residence, as the buyer must live in the property for a continuous period of six months.
The New South Wales First Home Owner grant will drop down to $10,000 from January 1, 2016.
The Queensland government offers first home buyers building or buying a brand new home a $15,000 Great Start Grant for properties valued under $750,000.
To be eligible for the grant, first home buyers must move in within one year of the completion date and live there for a minimum of six months.
Applications can be made through the Office of State Revenue or through a bank or lending institution.
The South Australian government offers up to $15,000 for first home buyers building or buying a new property that does not exceed that value of $575,000.
As with other states, the property must be the intended place of residence for at least six continuous months.
Off the plan buyers may also be eligible for an off the plan concession, which provides a full stamp duty concession of up to $21,330.
To be eligible for the full stamp duty concession, contracts must be entered into before June 30, 2014, as after this date, only a partial concession will be paid until June 30, 2016.
The stamp duty concession is only available to apartments located within a certain area, so check the Revenue South Australia website for more details.
First home buyers building or purchasing a new home in Victoria are eligible for up to $10,000 as long as the value of the home does not exceed $750,000.
All states can apply for grants via the Office of State Revenue or through a bank or lending institution.
If applications for grants are made through the Office of State Revenue, the grant may be paid as soon as all necessary documentations are received.
For those applying through a bank or lending institution, the grant is generally paid on settlement. 
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How to: Apply for the first home owner’s grant

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Everyone has a different appetite for risk when it comes to investing, with individuals having a unique profile of their experience and knowledge.
For new investors, that first purchase can be critical as one of the initial building blocks to a larger portfolio.
While inexperienced investors may make more mistakes, or to purchase something in a slow growth area for the long term, there are some strategies that are unlikely to suit those with little capital, lots of potential and little expertise.
Many risky strategies centre around behaviours and choices that amount to speculation or quick-rewards type thinking.
Here are some of the strategies to be careful with:
Mining town or single economy regional towns
Mining towns can leave even the most astute investor flailing. Known by even those outside of real estate circles for their volatility, the towns are seen to be attractive due to their regularly lauded ‘hotspot’ titles.
"So what madness is this that causes property investors, many of them without money to lose and gambling the equity in their own family homes, to completely ignore the risk factor attached to buying in mining towns?" asks Destiny Financial founder and director Margaret Lomas.
Quite simply, she says, investing in a town solely based on just one industry carries a risk greater than buying a property in an area with a diversified industry.
"An event that may initially have little to do with that one industry, such as another GFC, a slowdown in China's demand for our resources, to name a couple, could eventually develop to create an impact great enough to negatively affect the fortunes of the true risks involved," she warns.
Structural renovations or development projects
Some new investors will suit these projects, however the majority will not have a background or the experience necessary to successfully undertake a large project without substantial help.
Not only are the costs significant upfront, but the time it can take for these improvements to get off the ground can be lengthy.
First timers may want to consider cutting their teeth on more traditional investments, or smaller improvements such as a granny flat, subdivision or cosmetic renovation before jumping in for more substantial and costly improvements.
Low or no deposit options
If you are being offered a way to get into a property without having saved a certain amount, you should be on your guard about the terms and conditions. Without building in a substantial buffer to the mortgage, you are putting yourself at risk if the market dips even slightly.
Loans that fall into this category, including family guarantees, 40-year loans and low-deposit loans, can be used safely by investors, provided they plan and research carefully.
This includes doing a ‘pressure test' – see if you can afford interest rates if they increase by say 3% or more. If you're thinking about a family guarantee, then ensure you consider alternatives and the consequences, and that everyone impacted is aware of the potential outcomes should the owner default.
And, of course, ensure you have enough savings to cover things if problems arise.
Joint ventures
Purchasing an investment with a friend or family member, or a number of them, can help you get into the market with less upfront capital sooner.
This is much easier when the parties enter into the transaction 50/50, splitting every cost and responsibility down the middle. However, it is not unheard of for someone to bring more capital than another investor. This can then cause arguments around who is entitled to more of the profits and week to week cash flow.
However, while they can be done successfully, joint ventures or "JVs" can also bring a whole new raft of risks with them. What if your situation changes, and you want to sell but the other parties want to hold? Who is responsible for what repayments, and what happens if they default?
While you take away some of the upfront responsibilities, you may also find yourself taking on their troubles with the investment while losing control over the asset. Ensure everyone knows what they are required to do, which costs and maintenance they should be assisting with and have a good system in place to deal with conflicts.
To do this well, have a lawyer write up an agreement between the joint venture partners, clearly outlining responsibilities, costs, and what happens when/if capital gains are realised before you enter into the investment.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2763/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>

Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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leldred-s3gDjqZCKM

What strategies are not always suited to new investors?

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Every property investor is faced with decisions, but one of the debates that many enter into early on is whether to consider buying a property for strong future capital gains prospects or for current rental yield realisation.
What is high yielding for a particular area? Yield is very specific to the individual property, and it can be further altered by the outgoings.
Balance between both – yet they’re not a "trade-off" necessarily. You do not want to be completely drained by an investment each week, and you don’t want to get cash flow coming in with little growth on the other end.
However, some investors are strictly yield chasers, looking to maximise their regular income.
With an inverse relationship seen between capital growth and rental income – a rule of thumb with many exceptions – it makes sense to <a href="/expert-insights/investing/how-to-boost-your-rental-yield">boost rental yield where possible</a>.
There are several ways to do this, including furnishing the property, offering it to multiple tenants, adding a granny flat or turning it into a holiday rental. A renovation, or adding something desirable like air conditioning, can also do wonders for justifying a small rent increase.
Strong rent is not useful when the area’s rental market is in freefall. Similarly, strong capital growth is going to be hard to hold out for when you’re paying out a substantial sum each week. Your capital growth is going to need to cover what you’ve paid out while waiting for it to occur if the investment is viable.
It’s all about your short and long-term goals, as well as your current financial situation. For every investor, this will differ.
Total yield
Total yield is a concept that brings the annualised capital growth and rental yield together to create a new figure that determines the success of the property.
For instance, a 4% yield with a 6% annualised growth creates a 10% total yield.
If you never intend to sell the properties you hold, a plan many subscribe to, then it may make sense to seek out high yielding assets for the final portfolio to sustain you in retirement.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2764/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>

Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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Should I be looking for capital growth properties or high yielding investments?

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There are many articles written about the research that an investor must undertake to find a location that will grow in value and has good investment fundamentals. This is your due diligence process and every investor’s research process looks different when determining where to invest.
For new investors, it’s crucial to firstly understand what those investment fundamentals are.
Now that you know what you’re looking for, you can head to certain places to obtain the information. You may decide to be led by property experts and buyer’s agents, leveraging off of their experience.
Other experts can include local real estate agents with strong knowledge of the area’s property market, the local Council, research houses and even local town planners can be a good place to start. Data companies, such as RP Data and SQM Research can be worth considering for data to either back up your research or fill in the blanks. A mixture of specific factual information, such as the numbers, recent sales and statistics around migration, along with your own qualitative research can be crucial. This could include your sense of the properties as you wander through them, things you have heard from the neighbours about what is desirable and even rumours about new transport or government spending in the area.
Firstly, a suburb with the best growth will not be within everyone’s capacity to purchase. It may not be affordable for you, or it may not match up with your risk appetite. Once you have this established, you are able to quickly rule out locations regardless of their potential.
<h3>Turn to the 'macro'</h3>
The first thing to consider when looking for a growth suburb is the macro aspect.
There are thousands of suburbs across Australia, and there's no way you can check them all. Property buyers should become familiar with the concept of market cycles and try to understand where each state and territory is in its cycle.
You can then look within a location with good growth prospects for broader trends. For instance, has the government identified the location as a growth area?
Looking a little closer
As you try to choose a region or more localised area you may find that your price point helps you refine a suburb choice quickly. Other statistical indicators, relating to your strategy, can also help you shortlist. This may include rental yield, proportion of houses vs. apartments, income growth and a number of other statistics that investment experts regularly hang their hats on.
You may want to consider wider locations that you can afford and going through them, checking for overall drivers and growth prospects in the areas. If they're largely driven by tourism, then you'll need to understand the potential fluctuations in the labour market, seasonality, and how this may flow-on to your investment property.
It will also be worth looking at government plans on a wider scale to try and pinpoint areas of growth. If, for instance, a rail line is being put through a whole area and there is significant infrastructure investment, then you may want to consider it more closely. Be wary though, sometimes these initiatives are reactive, rather than proactive – that is, they are put in as a result of growth rather than in expectation of it.
There are a number of things that drive capital growth to look out for. Here are a few:
<ul>
<li id="customlist">1. New infrastructure projects;</li>
<li id="customlist">2. Supply/demand issues;</li>
<li id="customlist">3. Strong migration into the area/high population growth forecasts;</li>
<li id="customlist">4. Gentrification;</li>
<li id="customlist">5. Strong employment drivers.</li>
</ul>
<style>
#customlist::before{background: none}
</style>
For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2765/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>

Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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What research is crucial to find a suburb with the best growth?

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The breadth of choice, let alone the technical considerations, investors face before sinking capital into the share market can make it a daunting exercise. But a few simple guidelines can help secure a safer investment and long-term gains.
When it comes to asset allocation Mark Draper, former stockbroker now financial advisor at GEM Capital, says investors should set aside at least three to five years of capital in fixed income or cash to enable them to weather any potential downturn in the markets.
For anyone thinking of direct investment in the share market – buying shares through a broker rather than investing in a fund – Draper suggests shutting out the ‘noise' about market movements and focusing instead on investing in profitable companies.
"Play the large caps [usually the biggest 100 listed companies], because there's good information flow for those.
"Leave the small caps and the micro caps to the fund managers because often they will have more information before retail investors see it; they're better equipped to operate across that space."
<h3>How to tell if a company is profitable?</h3>
Avoiding anything with more than 50% debt to equity is a reasonable guideline.
Better still, understanding where companies make their money and picking the stronger performers in their sector, rather than the cheaper options, will help.
That means look for quality rather than price.
"Quality is defined by recurring earnings, so people should look to invest in a company that is growing their earnings, and is a leader in their space," Draper says.
Look at the Price to Earnings (PE) ratio, for example: if you had a company making $100,000 profit, and someone willing to pay you 100 times your earnings (a PE ratio of 100x) then that's someone willing to pay $10 million for $100,000 profit.
"Would you sell or would you buy?" Draper says.
A better indicator might be the Price to Cash Flow ratio, which effectively measures how much cash is coming into the business.
"The problem with the PE ratio is that you can load the company with debt and make it look like a cheap PE ratio, but you can't hide that in the Price to Cash Flow ratio."
Draper also advises investors to check the earnings per share (EPS) and compare it with the dividends per share (DPS).
"You'll get an idea if the company is paying out more in DPS than it is in EPS, which could signal the company is paying dividends through debt rather than equity or profit. That may mean longer term issues," he warns.
<h3>Share market subsets</h3>
For those willing to explore subsets of the equity market, such as small caps and micro caps (companies with between $200 and $300 million market capitalisation) the returns can be astounding, but it is advisable to use a fund manager.
Carlos Gil, chief executive and chief information officer at MicroEquities, says their flagship micro-cap fund has delivered just over 30% compound annual return over the past five and a half years.
"The traditional view of micro caps is that they're much more price sensitive and have a lot more volatility," Gil says.
But managed well they can outperform the market even in downturns, and part of that lies in picking companies who have been operating profitably for at least two years.
Gil says their fund has a downward capture ratio of 24%, which means when equities drop the fund only falls a quarter of what the market does.
Because they are companies in the early stages of their lifecycle, they tend to be shielded from general economic conditions, meaning typically better growth potential but also growth linked to a company-specific reason.
"With large caps, their growth is for better or worse often intimately related to the prevailing economic cycle… for us, one of the surefire signs we're across a mediocre micro-cap company is when a director at an AGM blames poor performance on slower broader economic growth."
Of MicroEquities' unit holders, 60% are self-managed super funds looking to maximise capital over a five-year-plus timeframe. Like Draper, Gil says that longer-term outlooks will invariably mean better results for investors.
This article looks at investment in a general way; if you need specific advice regarding your situation, you should consult an appropriately qualified and registered professional.
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 Asset allocation: How to invest in the share market

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Property Observer spoke with realestateVIEW.com.au’s General Manager Petra Sprekos to discuss their new mobile app, highlighting its clever secrets for real estate agents.
Help your clients find the best property hot spots, average sale prices, local amenities and more, with an easy swipe of a screen. It’s got all the tools to help them make one of the biggest investments in their lifetime. 
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Quick sale of 1958 Harry Seidler-designed Dover Heights Kalowski residence

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Expert investors know where, how much, and the likely returns on a property – but there’s no reason why you can’t have that advantage
Finding a great property investment takes a lot more effort than simply showing up on auction day and buying a stunning house.
The expert investors aren’t necessarily looking for the most beautiful property – they’re looking for the one which will deliver an income and capital growth for years to come.
Mark Bouris, executive chairman of wealth management company Yellow Brick Road, says this means not only paying a good price for now, “but a good price for the 10 to 20 years you want to generate income from this property”.
“If you pay too much, you'll lose on capital appreciation and it will take longer to generate clear funds from the rent,” he says.
Bouris says the key is to do your homework and find the best area to purchase in at the best price.
“With an investment property, you are interested in a good location and access to infrastructure such as schools, shops, railway stations and playing parks,” says Bouris. He says that calculating average rents and yields in an area is also useful.
As the old property adage says, ‘location, location, location’.
To get the best return on an investment, it pays to watch local market and identify which way prices are moving and where they are likely to head next.
Steve Jovcevski, a property investment expert and home loan negotiator with comparison service Mozo.com.au, says that once you’ve identified a suburb, looking at the market on a regular basis can help determine whether you’re getting value for money.
“Look at what a property has sold for and make comparisons to another property in the same street or nearby area, seeing if it’s a similar size, or in the same condition, so that you find whether the market is trending upwards or saying static and you know what to expect price-wise,” says Jovcevski.
“If you’re getting a property at a similar price to what is selling up the road, at least you know you’re getting something that someone else is willing to pay for at that price.”
Websites such as Domain and realestate.com.au offer information on what properties have sold and for how much, while companies such as Australian Property Monitors and CoreLogic RP Data provide data on suburbs all across Australia that shows how prices, rents and yields in the area are trending.
Jovcevski says that keeping in touch with local agents can help you discover inside information on properties that may have sold privately.
Australian Bureau of Statistics data, including dwellings types, the percentage of properties owned by landlords, and employment stats, can help paint a portrait of how a suburb’s demographics are changing.
Once you’ve found a property, home loan comparison websites, such as <a href="https://pubads.g.doubleclick.net/gampad/clk?id=136264977&amp;iu=/109628257/click_tracker" target="_blank">Mozo.com.au</a>, can help you find the best rate on the market. But Jovcevski warns that it’s important to get the best deal, but when you’re doing that look at your circumstances.
“It has to be the best rate to suit your circumstances because rates vary depending on your intentions with the loan – there’s all sorts of factors that come into it,” he says.
For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the free Property Observer eBook, Get loan-savvy – tips for a first time, investment or refinancing loan, which helps you decide on a home loan that meets your requirements.
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How to watch the market like a pro: Mozo

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It’s a big commitment, so it’s best to go in eyes wide open with all the facts
A home loan is one of the most serious investments a person can make.
While online rate comparison tools have made looking for a loan easier than ever, it still takes time to work out what the best option is for you. Here are five expert tips to ensure you are on track.
<h3>1. Know what you can afford</h3>
Interest rates may be low at the moment, but will you still be able to afford the repayments once they begin to rise?
The interest rate is by far the biggest cost of a home loan. As a rule of thumb, an interest rate difference of 1% will increase the annual cost of servicing a typical $300,000 loan by around $2,000.
Kirsty Lamont, a director at mortgage comparison website <a href="https://pubads.g.doubleclick.net/gampad/clk?id=136265697&amp;iu=/109628257/click_tracker" target="_blank">Mozo.com.au</a>, says that when you’re calculating how much to borrow, don’t use current interest rates.
“Consider what will happen down the track when interest rates go up 1% or 2% percentage points or more,” says Lamont.
“Do your calculations by including a buffer to make sure you can still afford to maintain your repayments if rates do rise a couple of percentage points.”
<h3>2. Do your research</h3>
Finding the best home loan can often come down to making sure you do your research on the options available and choosing wisely, says Lamont.
Picking the wrong home loan could cost you tens of thousands of dollars in extra interest and fee charges. The home loan experts at Mozo have crunched the numbers and found that on a typical $300,000 home loan, the difference between the cheapest and most expensive home loans on the market adds up to over $4,000 each year in extra costs. Over 10 years that totals a whopping $40,000.
“These days it’s easy to research home loans online and with comparison sites like Mozo you can literally compare the market at the click of a button so use technology to your advantage,” she says.
<h3>3. Consider your individual circumstances</h3>
While you’re conducting research, make sure you consider your individual circumstances, says Steve Jovcevski, a property investment expert and home loan negotiator with Mozo.com.au.
Consider whether you would like an interest only loan, or a principal and interest loan.
“If you want an interest only loan where you make interest only payments at a low rate, make sure the loan-to-value ratio covers off that rate,” says Jovcevski.
<h3>4. Understand comparison rates</h3>
Borrowers need to check their loan is competitive on the fee front. The average upfront fee you will pay is $500, but some of the best value loans on the market have no application fees at all.
It’s also becoming more common for lenders to waive the application fee if you put pressure on them.
The comparison rate is a government-mandated calculation that includes the interest as well as the loan’s main fees and charges in the one rate and hence more accurately reflects the true cost of a mortgage.
“If you’re searching for something as important as a mortgage, and a comparison rate gives you a chance to level the playing field, you really must pay attention,” says Mark Bouris, executive chairman of wealth management company Yellow Brick Road.
“Because all lenders have to use the same formula, the result gives a borrower the means to compare the true cost of a loan before they commit to it, and it gives some reality to the headline interest rate.”
<h3>5. There’s a lot more than the Big Four</h3>
The big banks and other major lenders commonly charge annual ‘package’ fees of between $200 and $400 a year for a discounted home loan package.
These sorts of packages can offer substantial discounts on the lender’s standard interest rates, particularly if you’re borrowing a large amount, but it always pays to compare package deals against the top low-rate loans from smaller lenders like loans.com.au and uBank to see if you can get a comparable rate without the hefty annual package fees.
For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the free Property Observer eBook, Get loan-savvy – tips for a first time, investment or refinancing loan, which helps you decide on a home loan that meets your requirements.
 
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