Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

<html><body>
Comparison website Finder claims that banks have held onto an estimated $7 billion in the past three years by not passing on full Reserve Bank cash rate cuts.
According to Finder, since November 2011, ANZ, Commonwealth Bank, NAB and Westpac have been able to keep the sum from borrowers by failing to pass along full rate cuts on their variable rate loans.
Finder arrived at the sum by taking the average of the four banks' total home loans financed per month since November 2011, and the difference between the interest earned per month based on their average standard variable rates and how much they would have earned if they passed on the full rate cuts. Finder then subtracted 30% from that sum as an estimate for the proportion of fixed home loans, using its research that estimates 70% of Australian mortgage holders have a variable loan.
NAB has failed to pass along rate drops more than any of the other three banks in that period, Finder claims. According to their research, NAB held back 0.46 percentage points of the 2.50 percentage points cut by the Reserve Bank since November 2011.
Westpac, though it's held back only 0.34 percentage points in that time, has the highest standard variable rate of the big four banks, at 5.70% from 20 February.
Commonwealth will offer 5.65% on its equivalent product from the same date, while ANZ and NAB will have the lowest rates of the big four at 5.63%, which will be offered from 12 February and 20 February respectively.
According to Michelle Hutchison, Finder money expert, the big four banks' actions will affect most Australian mortgage holders.
"The big four banks hold 84% of home loan market share of all banks monitored by the Australian Prudential Regulation Authority (APRA)," says Hutchison.
"For a $300,000 home loan, borrowers could be missing out on $70 per month, $840 per year or over $25,000 over 30 years, based on the average 0.37 percentage points that the big four banks have kept from their customers."
"The big banks are making record profits from their customers because many borrowers are not bothering to compare their home loan to other lenders. While some prefer to pay more for to bank with the one organisation, it's a hefty cost for a little convenience."
Of the four banks, Commonwealth Bank has the largest market share in terms of value of loans.
</body></html>

jrichardson-uRX5hFdKfN

Borrowers miss out on $7 billion from Big Four: Finder

<html><body>
ME Bank has cut its fixed home loan rates for its three year and five year products.
Its three year term rate has dropped by 31 basis points to a new standard rate of 4.28% per annum.
ME Bank's one year fixed term loan is now offered at 4.69% after a 20 basis point cut, while its five year loan has been cut by 10 basis points to 4.59%.
According to ME Bank, they "retain top spot" for three and five year loans.
ME Bank chief executive Jamie McPhee said the lender has chosen to "immediately pass" savings in the fixed rate market on to borrowers.
"To illustrate, since December 2013, ME Bank has reduced its 5-year fixed home loan by 120 basis points, 3-year by 56 basis points, and 1-year by 20 basis points," said McPhee.
"ME Bank is focused on a strong growth trajectory and home loans will continue to be the most important source of asset growth over the next three years," he said.
</body></html>

ME Bank cuts rates to record low

<html><body>
Hi Margaret,
I just read your recent reply on <a href="/news">moving out of your home and the capital gain tax that may come with it</a>.
Wonder if you could help me with this.
Just to clarify, if I stayed in my home for three years and if I sell it 10 years after moving out from it, and I have no other home, I would have to pay 4/13 of the net captital gain (method one)?
Can I get a valuation after the six years is up an calculate the gain from that date and pay tax on the difference (method two)?
I think the Australian Tax Office (ATO) website seems to deal with method one. Is method two also possible?  My six years is up in a years time and I am contemplating whether to sell since I live overseas.
Regards,
Shanthi
Hi Shanthi,
This part of the tax rules can be very confusing - and can be really hard to wrap your head around.  Where tax is concerned its really important that you contact an accountant, tell him or her your exact situation and tell him or her just how the rules apply to you, and what you will pay.
I have checked with Ian Rodrigues, my Property Success team member and tax specialist, and we talked your situation through.
You can choose to treat a property as your main residence even after you move out provided you do not choose another property as a main residence during that period and it is not rented.  This means that, if you didn’t own anything else, and you didn’t rent out this property, you can keep the main residence exemption on it indefinitely and pay no capital gains tax.
If it is rented out, however, the maximum period you can treat it as your main residence after you move out is six years.  You can move back in during the six years and the six year period will reset. If you continue to own the property after the six year period has expired,  you only get a partial exemption.
In your example, if you lived in it for three years, and then rented it for 10 years, you would have to pay capital gains tax on 4/13th of the gain.
You can't use a valuation after the six years for the basis of calculating the capital gain , but you are able to use a valuation at the date it ceased to be your main residence.  In your case, this was three years after you purchased it. The capital gain would  then be calculated as 4/10th of any gain over that market value.
You will need to get a qualified valuer to provide you that retrospective valuation if you don't have one from that time - the ATO is unlikely to accept a market opinion from a real estate agent where no valuing qualifications are held.
Again I stress that you should discuss this with an accountant who has a good grasp of capital gains tax and main residence exemptions.
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
</body></html>

mlomas-KC9MUPZ6Ca

Ask Margaret: How do I work out how much CGT I will pay on renting out my old home?

<html><body>
GUEST OBSERVATION
Over one-quarter, or 26%, of lenders have now made interest rate cut announcements, including all four major banks, according to <a href="https://finder.com.au/" target="_blank">finder.com.au</a>. 
However, just one of the 30 lenders has passed on the rate cuts to existing and new customers so far, which was BankVic with an effective date of 9 February, 2015. <a href="https://Loans.com.au" target="_blank">Loans.com.au</a> was first to drop its rate for existing customers with its rate-linked home loan while cuts for other borrowers will take effect on 23 February, 2015.
So most borrowers won't receive a rate reprieve until 22 February on average, which means it will be in next month's statement.
The latest to make a rate cut announcement was Aussie, which followed the pack and will drop its variable home loan rates by 0.25 percentage points, effective February 23, 2015.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="205"> Lender</td>
<td valign="top" width="205"> Rate cut</td>
<td valign="top" width="205"> Effective date</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/amp-capiutla-nov-19-logog.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">23 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/anz-aug-4-logo-breakout.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">12 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/ausie-jan-15-breakout.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">23 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/bank-of-melbourne-aug-4-logo-breakout.png" width="200px"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"> <img src="/images/3_StockBreakouts/Company-Logos/BOQ-aug-13-logo.jpg" width="200">
</td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">24 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"> <img src="/images/3_StockBreakouts/Company-Logos/banksa-logo.jpg" width="200">
</td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/BankVic-logo-breakout.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">9 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"> <img src="/images/3_StockBreakouts/Company-Logos/Bankwest-Logo.jpg" width="200">
</td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/bendigo-bank-feb-10-breakout.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">27 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/citibank-feb-10-breakout.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"> <img src="/images/3_StockBreakouts/Company-Logos/cba-aug-4-logo-breakout.jpg" width="200">
</td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/cua-lgoo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">24 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"> <img src="/images/3_StockBreakouts/Company-Logos/logo_Greater_Building_Society.jpg" width="200">
</td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/heritage-bank-logo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/hsbc-logo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/ing-direct-logo.jpg" width="200"></td>
<td valign="top" width="205">-0.50%</td>
<td valign="top" width="205">10 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/loans.com.au-logo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">4 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/maitland-mutal-logo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">23 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/me-bank-aug-4-logo-breakout.png" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/nab-aug-4-logo-breakout.png" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/newcastle-pernamnet-logo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">23 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/pbbanklogo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">6 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/peopleschoicelogo.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">24 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/rams-feb-10-breakotu.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/st-george-aug-4-logo-breakout.png" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/SMSCSelfEmp.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">27 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/suncorpimage.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">27 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/UBank_UHomeLoanNOV.jpg" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">25 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/westpac-aug-4-logo-breakout.jpg" width="200"></td>
<td valign="top" width="205">-0.28%</td>
<td valign="top" width="205">20 February 2015</td>
</tr>
<tr>
<td valign="top" width="205"><img src="/images/3_StockBreakouts/Company-Logos/ybr-aug-4-logo-breakout.png" width="200"></td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">24 February 2015 </td>
</tr>
</tbody></table>
Source: finder.com.au, ranked alphabetically. Dates may vary for some customers.
*Some loan changes may be effective from 15/3/15.
With all lenders so far passing on at least the full 0.25 percentage point rate cut, we estimate that by next month there will be 158 variable rate home loans under 1.60%, <a href="https://finder.com.au/home-loans" target="_blank">out of almost 1,400 home loans monitored</a> by finder.com.au.
These lenders that will offer introductory or ongoing variable home loan rates under 4.6% include CBA, <a href="https://Loans.com.au" target="_blank">Loans.com.au</a>, HSBC, UBank, Heritage Bank, Yellow Brick Road, CUA, BankVic, Bankwest, IMB, Aussie, Macquarie Bank, Bank of Sydney, AMP, Citibank, ING Direct and more.
It's a great time for borrowers to find out what rate they will be on once the rate cuts come into effect and compare it to other home loans. Variable rate borrowers shouldn't accept an interest rate over 5% next month and should renegotiate with their lender or switch to a cheaper deal.
For instance, if you have the average variable home loan rate of 5.5% and it falls to 5.10%, switching to 4.60% for a $300,000 home loan could save you $91 per month or over $32,000 over 30 years.
This money is up for grabs and it's up to borrowers to jump online, talk to their lender or switch home loans and take the cash on offer.
<a href="https://www.finder.com.au/rba-cash-rate" target="_blank">Click here to view a table</a> of the lenders that have so far announced rate cuts and we will be updating this page as we hear more announcements.
Michelle Hutchison is spokesperson for comparison website <a href="https://finder.com.au/" target="_blank">finder.com.au</a>.
</body></html>

mhutchison-SWt6qigzDX

The banks make their moves following RBA cut: Michelle Hutchison

<html><body>
The Real Estate Institute of NSW (REINSW) has joined a growing chorus of voices calling for changes to stamp duty on residential property.
REINSW president Malcolm Gunning said NSW home buyers were being hit with excessive amounts of stamp duty, which is known as transfer duty in some states, due to increasing house prices.
“Stamp duty was never designed to slug the average property owner at such high levels,” he said.
Gunning’s comments echo recent calls from others in the industry including the <a href="https://www.news.com.au/finance/real-estate/reiq-calls-for-stamp-duty-abolition-first-homebuyer-grant-reform-and-super-to-be-used-for-loan-deposits/story-fndbalka-1227189572242" target="_blank">heads of other state branches of the Real Estate Institute</a>, Property Council of Australia of South Australia executive director <a href="https://www.news.com.au/finance/real-estate/stamp-duty-comes-under-fire-as-sa-housing-approvals-fell-in-november/story-fndba8zb-1227178836009" target="_blank">Daniel Gannon</a>, and CoreLogic RP Data senior research analyst <a href="/expert-insights/investing/its-time-to-reform-stamp-duties-cameron-kusher">Cameron Kusher</a>.
The tax has been criticised for holding back new residential development and discouraging housing turn over, such as downsizing the family home.
In the UK, cuts to the rate of stamp duty charged on properties <a href="https://www.theguardian.com/money/2015/jan/28/stamp-duty-spike-uk-home-buyer-estate-agents" target="_blank">introduced late last year</a> have reportedly led to a jump in the number of people looking to buy a home. 
Stamp duty is levied by the states, so its level varies depending on the location of the property. First home buyers in some states receive concessions which mean they do not have to pay duty on the purchase of properties up to a certain value. There are also concessions in some states for buying new homes or vacant land for building a home.
Here are some examples of how stamp duty varies for purchases of established homes in each state. The greatest variation is for lower valued properties where concessions for some types of buyer come into play.
Property value: $350,000
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="151">
State
</td>
<td width="141">
First home buyer
</td>
<td width="152">
Home buyer (subsequent property)
</td>
<td width="157">
Investor
</td>
</tr>
<tr>
<td width="151">
South Australia
</td>
<td width="141">
$13,830
</td>
<td width="152">
$13,830
</td>
<td width="157">
$13,830
</td>
</tr>
<tr>
<td width="151">
Northern Territory
</td>
<td width="141">
$13,300
</td>
<td width="152">
$13,300
</td>
<td width="157">
$13,300
</td>
</tr>
<tr>
<td width="151">
Tasmania
</td>
<td width="141">
$11,935
</td>
<td width="152">
$11,935
</td>
<td width="157">
$11,935
</td>
</tr>
<tr>
<td width="151">
NSW
</td>
<td width="141">
$11,240
</td>
<td width="152">
$11,240
</td>
<td width="157">
$11,240
</td>
</tr>
<tr>
<td width="151">
ACT
</td>
<td width="141">
$9,575
</td>
<td width="152">
$9,575
</td>
<td width="157">
$9,575
</td>
</tr>
<tr>
<td width="151">
Victoria
</td>
<td width="141">
$6,935
</td>
<td width="152">
$13,870
</td>
<td width="157">
$16,070
</td>
</tr>
<tr>
<td width="151">
Queensland
</td>
<td width="141">
$0
</td>
<td width="152">
$3,500
</td>
<td width="157">
$10,675
</td>
</tr>
<tr>
<td width="151">
Western Australia
</td>
<td width="141">
$0
</td>
<td width="152">
$10,735
</td>
<td width="157">
$10,735
</td>
</tr>
</tbody></table>
Property value: $650,000
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="151">
State
</td>
<td width="152">
All buyer types
</td>
</tr>
<tr>
<td width="151">
Victoria
</td>
<td width="152">
$34,070
</td>
</tr>
<tr>
<td width="151">
Northern Territory
</td>
<td width="152">
$32,175
</td>
</tr>
<tr>
<td width="151">
South Australia
</td>
<td width="152">
$29,580
</td>
</tr>
<tr>
<td width="151">
Western Australia
</td>
<td width="152">
$24,890
</td>
</tr>
<tr>
<td width="151">
NSW
</td>
<td width="152">
$24,740
</td>
</tr>
<tr>
<td width="151">
Tasmania
</td>
<td width="152">
$24,622.50
</td>
</tr>
<tr>
<td width="151">
ACT
</td>
<td width="152">
$23,300
</td>
</tr>
<tr>
<td width="151">
Queensland*
</td>
<td width="152">
$15,100
</td>
</tr>
</tbody></table>
* Buyers in Queensland would pay $22,275 transfer duty on a property bought for investment purposes.
Property value: $1 million
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="151">
State
</td>
<td width="141">
All buyer types
</td>
</tr>
<tr>
<td width="151">
Victoria
</td>
<td width="141">
$55,000
</td>
</tr>
<tr>
<td width="151">
Northern Territory
</td>
<td width="141">
$49,500
</td>
</tr>
<tr>
<td width="151">
South Australia
</td>
<td width="141">
$48,830
</td>
</tr>
<tr>
<td width="151">
ACT
</td>
<td width="141">
$44,918
</td>
</tr>
<tr>
<td width="151">
Western Australia
</td>
<td width="141">
$42,615.50
</td>
</tr>
<tr>
<td width="151">
NSW
</td>
<td width="141">
$40,490
</td>
</tr>
<tr>
<td width="151">
Tasmania
</td>
<td width="141">
$40,185
</td>
</tr>
<tr>
<td width="151">
Queensland
</td>
<td width="141">
$30,850
</td>
</tr>
</tbody></table>
Source of data in all tables: Infochoice.com.au
</body></html>

zfielding-GvX3Uq9KTa

How stamp duty varies state by state

<html><body>
GUEST OBSERVATION
The Reserve Bank's (RBA) interest rate cut last week will have far reaching implications across the board for both home owners and investors.
Here are the six main changes that will be put in to motion with a cut from the RBA last week.
<ol>
<li>
Investor boom to continue As money becomes cheaper, it becomes more appealing for investors to buy in to property and using the depreciation benefits off owning a property to their advantage. Expect to see further investors snapping up blue-chip properties that most commonly are reserved for first home buyers as they will be happy to bank on the capital appreciation and can afford the off-set from the loss. 
</li>
<li>
First Home Buyers to start buying their parents presents Unfortunately, a cut to interest rates, which will fuel further interest from the investor market, makes it highly unlikely that first home buyers will be able to compete in blue chip locations for traditional first homes. Two bedroom homes in prime locations will become tougher to buy and anything that is a corner block with redevelopment potential is almost certain to be purchased by an investor, making it even harder for first home buyers to get in. Things are likely to get tougher for first home buyers.  
</li>
<li>
It will put Australia back in to the 1970s Not since the 1970s have Australian's been able to access money so cheaply. The last time a home loan was below 5% (which is where it will fall to with a cash rate of 2.25%) was over 30 years ago. 
</li>
<li>
It will (attempt) to build consumer confidence  An underlying reason the government wants to cut rates is to have consumers start spending again, and if money is cheaper than ever before it may encourage people to take further risks and start putting money in to the economy, however, so far this hasn't worked, and it seems the RBA may push this as low as it can go to encourage spending, which so far is minimal. It will attempt to encourage consumer spending on goods and services.  
</li>
<li>
It should keep unemployment stable, or lower it  Most likely an interest rate cut in its bravest attempt will encourage consumer spending, and if consumer spending picks up, it's easy to see more jobs becoming available and the economy picking up. This will be heavily dependant on a surge in consumer spending rather than further saving.  
</li>
<li>
It will start talk of a bubble Expect a heap of people to say that now money is so cheap, and people are able to buy so easily, property prices are going to sky rocket to an unsustainable level, causing a bubble. This will be a serious concern for the RBA, but they obviously feel that there is still room to move in the pricing of the housing market, and it is not overpriced currently. </li>
</ol>
TODD SCHULBERG is marketing engagement and digital strategy executive at <a href="https://www.homely.com.au/" target="_blank">Homely</a>.
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ToddSchulberg-ooPiJQCUaR

Six ways the interest rate cut will impact the housing market: Todd Schulberg

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Investors have been told rent inflation was slowing, consistent with the increase in vacancy rates over recent years, according to the February Reserve Bank of Australia (RBA) meeting monetary statement.
The pace of national housing price growth slowed too noticeably in early 2014 but, looking through the volatility, appeared to have changed little since then, the RBA board meeting was told on Tuesday.
"Notwithstanding this, growth of housing prices remained strong over recent months, particularly in Melbourne and Sydney," the minutes said.
"At around 8%, housing price growth remains well above the growth rate of household incomes.
"Survey measures of housing price expectations declined in the December quarter and remain below the levels reached in late 2013.
"Most non-price indicators of housing market activity remain consistent with strong conditions in the established market, which should provide further support to consumption in the near term."
It noted the nationwide rental vacancy rate "has been gradually drifting up since the mid 2000s".
"Accordingly, rental price inflation has slowed, which, combined with strong housing price growth, has resulted in rental yields continuing to fall," the statement read.
HSBC Noted today's official statement from the RBA saw them revise down their GDP growth forecasts to 1.75-2.75% for 2015, from 2-3% previously. Growth is still expected to pick-up in 2016, to 2.75-3.75% (previously 2.50-4%). Underlying inflation is expected to remain around 2.25% in H1 2015, and they continue to expect it to be 2-3% beyond that, in line with their target objective. The statement was generally more down-beat about the pace of the ongoing rebalancing of growth, which appears to have been the reason for this week's rate cut.
The monetary statement noted consistent with the strong growth in housing prices, low interest rates and above-average population growth, there has been considerable growth in dwelling investment, which increased by 7% over the year to the September quarter.
It noted timely leading indicators point to further growth in dwelling investment in the December and March quarters.
"Dwelling approvals, particularly those for higher density homes, have stayed at a high level recently.
"Loan approvals for new dwellings increased by 5% over the year to November and the number of first home owner grants paid for new dwellings has continued to trend higher, increasing by 22% over the past year.
"Inflation in the housing-related components of the CPI remained moderate overall in the December quarter.
"Inflation in the price of new dwellings remained above the average of recent years, consistent with strong residential building activity.
"The RBA's liaison suggests that the upswing in residential construction activity has allowed some builders to increase margins over the past year or so.
"Combined with an increase in the cost of building materials, this has contributed to higher inflation in the prices for new dwellings.
"In contrast, rents inflation remained slow in the quarter, consistent with the increase in vacancy rates over recent years. Utility prices increased slightly, after falling in the September quarter due to the repeal of the carbon price."
The statement offered forecasts for consumption assuming that wealth effects continue to operate as they have done in the past and that there will be a further gradual decline in the household saving ratio.
"Consumption growth could be stronger than anticipated if conditions in housing markets strengthen, particularly in parts of the country that have seen less growth in house prices of late.
"If this is associated with a significant increase in leverage or a decline in lending standards, it could pose some risk to macroeconomic stability.
"However, another possibility is that ongoing buoyant conditions in housing markets will have less of an effect on consumption than previously.
"In particular, in recent years fewer households appear to have been utilising the increase in the value of their dwelling to increase their leverage or trade up.
"This possibility would imply that the saving ratio will be higher and consumption growth a little lower than expected based on historical experience.
"In addition, there is significant uncertainty around the size of the effect that the large changes in commodity prices, particularly oil prices, will have on household saving and consumption behaviour."
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jchancellor-FAypfDUnLy

Investors warned national rental vacancy was drifting: RBA February statement

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ANZ today announced it will lower interest rates for variable rate mortgages by 0.25% per annum following its monthly interest rate review.
Effective Thursday 12 February, ANZ’s standard variable rate will be 5.63% per annum (5.73% per annum comparison rate).
The 0.25% per annum decrease will save customers about $60 per month or $750 per year for the average home loan of $280,000.
“We’ve decided to move our standard variable rate for home loans down by 25 basis points which is the same as the movement in the Reserve Bank’s official cash rate," ANZ CEO Australia Philip Chronican told ANZ’s BlueNotes news site.
“We’ve tried to have a more open discussion with the community about bank funding costs. It’s true that wholesale funding costs have eased a little bit over the last year or so and that’s taken a little bit of the pressure off.
“Importantly the effective date for this change will be 12 February which is a full eight days earlier than most of our major competitors and I think that’s an important customer benefit,” Chronican said. 
He told News Ltd that he has concerns about the property market given cheap money.
“I am cautious because if you look at the big picture around the globe, this era of very cheap money has led to asset prices rising,” he said. “It would be nice to see some of the money … going into building new capacity, new construction, businesses expanding, rather than just seeing it all being used to bid up the prices of existing assets.”
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ANZ last to announce cut, but first to deliver among big four

<html><body>
GUEST OBSERVATION
Eighteen lenders have so far announced rate cuts to their variable home loans since the Reserve Bank dropped the cash rate to 2.2%. 
It's great to see that all of the 18 lenders that have so far announced rate cuts will be passing on the full 0.25 percentage points, with Westpac dropping further, by 0.28 percentage points. In particular, <a href="https://Loans.com.au" target="_blank">Loans.com.au</a> lowered its variable home loan rates by the full 0.25 percentage points yesterday, securing its position for the lowest variable home loan rates on the market, from 4.23%. 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="205">
 Lender
</td>
<td valign="top" width="205">
 Rate cut
</td>
<td valign="top" width="205">
 Effective date
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/anz-aug-4-logo-breakout.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
12 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/bank-of-melbourne-aug-4-logo-breakout.png" width="200px">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/BOQ-aug-13-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
24 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/banksa-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/Bankwest-Logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/cba-aug-4-logo-breakout.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/logo_Greater_Building_Society.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/heritage-bank-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/hsbc-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/ing-direct-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/loans.com.au-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
4 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/maitland-mutal-logo.jpg" width="200">
</td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">
23 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/me-bank-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/nab-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/newcastle-pernamnet-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
23 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/st-george-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/westpac-aug-4-logo-breakout.jpg" width="200">
</td>
<td valign="top" width="205">
-0.28%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/ybr-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
24 February 2015
 
</td>
</tr>
</tbody></table>
Source: finder.com.au, ranked alphabetically. Dates may vary for some customers.
*Some loan changes may be effective from 15/3/15.
<a href="https://Loans.com.au" target="_blank">Loans.com.au</a> was also the fastest to pass on the interest rate cut, making its new rates effective immediately, sparking greater competition in the home loan market. This is in contrast to most lenders, which change their rates a couple of weeks later. 
In fact, we analysed effective rate changes by the big four banks (as they hold the majority of home loan market share) following every Reserve Bank cash rate movement over the past five years and found that they were faster to pass on a rate increase than they were to pass on a rate cut. The big four banks took 11 days on average to pass on a rate cut to variable home loan customers, yet managed to pass on rate rises in just seven days.
ANZ and Westpac both took the longest to pass on rate cuts to their customers, at 13 days on average. Commonwealth Bank took eight days, while NAB passed on rate drops at the quickest average of seven days.
Commonwealth Bank were quickest to pass on a rate rise, at an average of three days. Following them were ANZ and NAB (both eight days), then Westpac (nine days). This means Commonwealth Bank passed on rate hikes around five days earlier than any of the big four banks.
The longer a bank holds on passing on a rate cut, the more money they'll squeeze from Aussie pockets before finally adjusting their rates. So it's no surprise we're seeing them taking more time to pass on discounts.
Though the numbers are concerning, it's highly unlikely these tendencies are limited to the big four banks, which means it's up to every Australian borrower to know if they're being ripped off. A good first step is to understand how the cash rate works and keep track of the movements, and then try to negotiate a better deal with your lender. They'll want to keep you onboard so fight hard!
If that doesn't work out, <a href="https://www.finder.com.au/home-loans" target="_blank">comparing home loans </a>with other lenders is also a good option. In fact, there's a huge difference between what lenders are offering, with 5.12 percentage points difference between the cheapest variable rate home loan on <a href="https://finder.com.au/home-loans" target="_blank">finder.coma.au/home-loans</a> at 4.23% and the most expensive at 9.35%. 
The number of home loans on the market is continually growing, so compare other lenders and not just the big four banks to make sure you're getting the best deal.
The table below shows the lenders that have so far announced rate cuts and <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">we will be updating</a> this page as we hear more announcements.
Michelle Hutchison is spokesperson for comparison website <a href="https://finder.com.au/" target="_blank">finder.com.au</a>.
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Banks taking their time to pass on rate cuts: Michelle Hutchison

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Back in November a little-noticed graph in Westpac’s 2014 profit result told an important story: the proportion of bad or worrisome loans on the banks books — in the jargon, stressed exposures as a percentage of TCE or total committed exposures — had dropped below 2008 levels, to 1.24%.
That is to say, Westpac had weathered the storm, the crisis was over. Rounding out the picture of a healthy bank were lower wholesale funding costs, higher net interest margins and record profits. And of course, Westpac and the other big banks had emerged from the crisis with much less competition from smaller and non-bank lenders.
<img src="https://media.crikey.com.au/wp-content/uploads/2015/02/tce.png" width="430" height="505">
Which is a roundabout way of saying the big banks did not have a leg to stand on when it came to passing on Tuesday’s 0.25 percentage point cut to the official cash rate by the Reserve Bank.
As though his life depended on it, Treasurer Joe Hockey made that crystal clear in his press conference yesterday afternoon, and you could hear the urgency in his voice on ABC Radio yesterday:
“The flow-through to the Australian economy is significant. And importantly, it must be immediate. And I say again to the Australian banks, pass it on in full now, not just to home owners, but importantly small business and credit cards as well.”
The Commonwealth Bank was the first of the Big Four to move, cutting standard variable home loan rates by 0.25 percentage points (and, interestingly, five-year fixed rates by 0.3 percentage points). Westpac quickly cut by an even higher 0.28 percentage points, and NAB, which has its rates under review, is certain to follow. ANZ customers will have to hold their breath since chief Mike Smith announced a year ago a stand-offish, stick-in-the-mud policy of waiting until Fridays (three days after the RBA meets each month) to announce any changes to interest rates, to stop bank-bashing treasurers, shadow treasurers and journalists berating the bank within seconds of any official rates move.
As they cut rates more or less in lockstep, however, the banks might be permitted a private grumble about mixed signals coming from the federal government and regulators. On one hand, David Murray’s Financial System Inquiry has just recommended the banks tighten home loan risk weights and retain higher levels of capital, to prevent another “too big to fail” moment requiring the kind of public bailout we saw in Australia with the bank deposit and wholesale funding guarantees or (much worse) in the United States, where the government spent trillions buying troubled assets and the Fed took equity stakes in the likes of Citigroup and Goldman Sachs to recapitalise them. The same pressure is felt internationally from the Financial Stability Board for example, and Australia’s big four — still among the world’s biggest banks — are key players in the debate.
Furthermore, the banks are being asked by Australian Prudential Regulation Authority (APRA) —  quite rightly, <a href="https://www.crikey.com.au/2014/11/03/bullying-banks-threaten-govt-over-price-signalling/?wpmp_switcher=mobile" target="_blank">as Crikey has argued</a>  — to toughen lending standards, particularly for those low- or no-deposit home loans originated by mortgage brokers on sales commission incentivised to maximise volume. As house prices surge — entering “new paradigm” territory with the likes of real estate agent John McGrath tipping that inner-Sydney suburbs will be “hot forever” — and self-managed super funds pile in, reducing housing affordability, right when income and jobs growth are receding, the systemic risk represented by some kind of house price slump increases. Tighter “macro-prudential” controls will hurt first home buyers struggling to get into the market, but they are necessary to stop borrowers over-committing on the false premise that prices only move in one direction.
On the other hand, despite this hawkish regulatory tendency, the second the RBA loosens monetary policy, we find ourselves screaming at the banks to “pass it on this instant!”. When it comes to the crunch, we all want easier money.
This story originally appeared on <a href="https://www.crikey.com.au/2015/02/04/hockey-bets-it-all-on-a-rate-cut-but-will-the-banks-save-his-bacon/">Crikey</a>.
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