Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

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>
With a number of experts now tipping a rate cut next year, 1300HomeLoan’s managing director John Kolenda is adding his voice to the crowd.
In fact, he notes that with significant drops to consumer confidence the evidence for a potential cut is becoming increasingly compelling.
The Westpac-Melbourne Institute survey of consumer sentiment is now at the lowest point in more than three years, he said.
This drop offsets a slightly better than forecast rise in the number of home loans in October – at 0.3%, 0.2% higher than expected.
“There’s growing expectations that the RBA will have to further ease its cash rate in the coming year due to deteriorating economic conditions and all eyes will be on how the retail sector fares over Christmas,” said Kolenda.
“Consumers are worried about the outlook for the economy and job security. Negativity about the federal government’s ability to get its budget measures through the Senate has also weighed on the minds of consumers.”
“Unlike other central banks around the world, the RBA has plenty of room to play with and the question may be when they have to act next on rates, not if,” he said, noting that the falling Aussie dollar may also cause a drop.
Yesterday <a href="/expert-insights/finance/nabs-alan-oster-says-30-chance-of-three-2015-rate-cuts">NAB’s Alan Oster suggested that up to three rate cuts may be seen next year.</a>
In October, <a href="/expert-insights/finance/interest-rates-expected-to-rise-for-three-years-here-s-when-the-first-hike-will-be-finder">every expert surveyed in Finder’s monthly Reserve Bank Survey tipped the next rate movement to be up</a>. Since then, the number of experts expecting a cut has been on the rise. Here are <a href="/expert-insights/finance/the-experts-who-are-now-predicting-a-2015-rate-cut">the other experts expecting a drop</a>.
</body></html>

jduke-EHk3XBmHkn

1300HomeLoan adds voice to crowd of rate cut forecasters

<html><body>
Yesterday, APRA stated that they had sent letters to all authorised deposit taking institutions (ADIs) outlining the steps they intend to take to enforce residential lending practices.
APRA noted that they would be increasing supervisory oversight onto lending.
Here are five comments to note:
<ol>
<li>“Interest rates remain at historically low levels, household leverage remains high, and housing loans represent a large and increasing concentration on many ADI balance sheets. Strong competition in the housing market is also evident, which is accentuating pressure on lending standards. Against this backdrop, housing credit growth has accelerated, with lending to property investors particularly strong; the Reserve Bank of Australia (RBA) has noted that this could be funding additional speculative activity in the market.” </li>
<li>“There are a number of additional regulatory and supervisory tools that APRA can apply to address emerging risks, building on the enhanced monitoring and review of recent years. These include additional supervisory monitoring and oversight, supervisory actions involving Pillar 2 capital requirements for individual ADIs, and higher regulatory capital requirements at a system-wide level. Beyond this, there are also more direct controls such as regulatory limits on lending activities, as introduced in other jurisdictions to manage risks emerging in the housing market.” They do note that they do not propose increases in system-wide capital or to introduce new regulatory limits, but does say they will keep them “under active review”. </li>
<li>Higher risk lending includes, for example, a high proportion of lending at high loan to income ratios (LTI), lending at high loan to valuation ratios (LVRs), lending on an interest-only basis to owner-occupiers for lengthy periods and lending at very long terms. In the current environment, where an ADI is undertaking large volumes of lending in these categories, or increasing this higher risk lending as a proportion of new lending, this will be a trigger for the consideration of supervisory action.” </li>
<li>“Given the currently very strong growth in investor lending, supervisors will be particularly alert to plans for rapid growth in this part of the portfolio. For example, annual investor credit growth materially above a benchmark of 10 per cent will be an important risk indicator that supervisors will take into account when reviewing ADIs’ residential mortgage risk profile and considering supervisory actions. The benchmark is not intended as a hard limit, but ADIs should be mindful that investor loan growth materially above this rate will likely result in a supervisory response.” </li>
<li>“The serviceability buffer assumed by ADIs as part of this assessment accommodates not only future changes in interest rates but also unexpected changes in borrower income and expenses. Practice in setting the serviceability buffer varies across the industry, with some assessments allowing borrowers to take on debt at very high multiples of their income.”</li>
</ol>
APRA notes that a prudent serviceability buffer is at least 2% above the loan product rate, with a minimum floor assessment rate of 7%.
They do suggest that “good practice” is the maintain a buffer and floor rate above these levels rather than operating at the minimum expectation, and that those who do keep to the minimum will more likely face further supervision.
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Five comments from APRA about lending standards

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The National Australia Bank (NAB) has joined the other banks to tip rate cuts in 2015 as it noted declining business confidence.
But its chief economist Alan Oster went further given rising nervousness that Australia will spend less and save more next year.
"What worries me there is that people are becoming less confident, they're less likely to employ and they're less likely to invest,"  Oster told Ross Greenwood's 2GB Money News last night.
So while NAB certainly expects two 25-basis-point cuts in the cash rate next year, it even countenances it could fall beyond this fresh record low of 2%.
"There will be at least two, and we haven't actually put it in a third, but if you gave me odds there's probably a 30 per cent chance," Oster said.
Adding that there won't be a technical recession next year, he suggested it very much depended on what happens with the currency, commodity prices and domestic demand.
Nonetheless he tipped the RBA would be be dragged kicking and screaming to cut rates, indicating a March rate cut would be the first, while other economists have tipped February.
"To some extent we were among one of the last to give up on the idea of cuts earlier this year," he told Greenwood.
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NAB's Alan Oster says 30% chance of three 2015 rate cuts

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ASIC will probe into the interest-only loans market as part of a broader review by regulators into home-lending standards.
It will look at the conduct of banks, including the Big Four and non-bank lenders, on compliance with consumer protection laws, including their responsible lending obligations.
The review follows concerns by regulators about higher-risk lending, following strong house price growth in Sydney and Melbourne.
ASIC, APRA, the Reserve Bank of Australia (RBA) and the Treasury are all working together to monitor, assess and respond to risks in the housing market.
Interest-only loans as a percentage of new housing loan approvals by banks reached a new high of 42.5% in the September 2014 quarter.
The ASIC Deputy Chairman Peter Kell said it was critical that lenders are not putting consumers into unsuitable loans that could see them end up with unsustainable levels of debt.
"Compliance with responsible lending laws is a key focus for ASIC," said Kell.
"If our review identifies lenders’ conduct has fallen short, we will take appropriate enforcement action.".
The Australian Prudential Regulation Authority (APRA) also announced it has written to all authorised deposit-taking institutions (ADIs) to set out plans for a heightened level of supervisory oversight on mortgage lending in the period ahead. 
Under interest-only loans, a borrower’s repayment amount will only cover the interest on the loan.
The principal amount borrowed will not reduce unless the borrower chooses to make extra repayments.
Paying interest-only means that a borrower will pay more interest over the term of the loan.
Some borrowers choose interest-only loans to maximise the amount they can borrow, especially if it is for investment purposes.
Loans are usually only interest-only for a set period of time, after which the borrower will either need to increase their repayments to start reducing the principal, or repay the loan in full.
Although interest-only loans can be appropriate in the right circumstances, interest-only loans can raise a number of risks, such as:
<ul>
<li>Whether the borrower can only afford a loan because it is interest-only</li>
<li>Whether the borrower can afford principal and interest repayments at the end of the interest-only period, and</li>
<li>Whether the borrower understands the impact of not making principal and interest repayments.</li>
</ul>
In August 2014, the Federal Court handed down its first decision on the responsible lending obligations: ASIC v The Cash Store (in liquidation).
 The Federal Court’s decision made it clear credit licensees must, at a minimum, inquire about the consumer’s current income and living expenses to comply with the responsible lending obligations. 
In response, in November 2014 ASIC updated Regulatory Guide 209Credit licensing: Responsible lending conduct to incorporate the general findings of the Federal Court on the responsible lending obligations for credit licensees.
ASIC also updated its advisory to make it clear that credit licensees cannot rely solely on benchmark living expense figures rather than taking separate steps to inquire into borrowers’ actual living expenses.
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ASIC and APRA sets sights on risky mortgage lending practices

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Hi Margaret,
I have just bought an investment property, which included doing a building inspection.
But prior to buying the property I also had a building inspection done on another property that I was looking to get as an investment which I did not go ahead with.
Are both building inspections tax deductible or just on the one I bought please?
With thanks
Geoff
Hi Geoff,
When buying an income producing property, the expenses which are associated with that are treated differently, depending upon what the expenses were and when they were incurred.
Where a building inspection is concerned, this is considered what we call a 'capital cost' and it is claimed by adding it to the cost base.  This means that you do not get an immediate deduction for it (as in, you cannot claim it in the year that it was incurred to get some of your tax back ion that year) - rather, it adds to your cost base and essentially reduces the gain you have to account for when you sell, reducing the amount of capital gains tax you must pay.
If you do not buy the property, you have no cost base to add it to so it is not claimable at all.
If you want to claim these kinds of costs, you must be in the 'business of buying rental properties' or in the 'rental property business'.  If your are assessed as being in one of those categories, then there are many extra things you can claim, but you will be treated like a business with all of the associated requirements and lose the 50% discount on CGT when you sell.
Regards,
Margaret
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
 
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mlomas-KC9MUPZ6Ca

Is a building inspection tax deductible if I didn't buy the house? Ask Margaret

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For a period of time it seemed that everyone was expecting the next interest rate movement from the RBA to be a hike.
However five experts surveyed by finder.com.au have now changed their opinion, totalling eight experts expecting an increase.
The latest finder.com.au Reserve Bank Survey has eight leading experts predicting a possible drop next year.
<ol>
<li>Shane Oliver, AMP Capital 
</li>
<li>Scott Pape, Barefoot Investor 
</li>
<li>James Bond, Financial Services Council 
</li>
<li>Noel Whittaker, QUT Business School 
</li>
<li>Bill Evans, Westpac 
</li>
<li>Andrew Wilson, Domain Group 
</li>
<li>Stephen Koukoulas, Market Economics 
</li>
<li>David Scutt, Scutt Partners</li>
</ol>
The first five on this list have only recently altered their opinion on what the RBA is likely to do in 2015.
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The experts who are now predicting a 2015 rate cut

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Comparator websites are under investigation by the corporate and consumer watchdogs.
The Australian Competition and Consumer Commission reported in early December that while more than 70% of people who research products online in the sectors it is investigating use a comparator website, most are sceptical of the results as they don’t understand how the websites make money or the motivations of the operators.
The ACCC is looking into the benefits and risks to consumers of using websites that compare multiple service providers in the private health insurance, telecommunications and energy sectors. The Australian Securities and Investments Commission is reviewing websites that compare financial services such as mortgages.
Property Observer compared the remuneration models of several mortgage comparator websites. Here’s what we found.
<ul>
<li>Comparethemarket.com.au</li>
</ul>
This site only compares the products of participating brands, which include each of the major banks but only a few of the smaller banks and non-bank lenders.
They say: “If you decide to buy a product or service from one of our participating providers, [Compare the Market] may receive a commission from that provider. This commission is paid by the product or service providers and there is no extra cost to you for our service. “It’s important to note that our comparison tool is not influenced in any way by our commercial arrangements with our participating providers. We work hard to provide you with great options for your needs.”
<ul>
<li>Finder.com.au</li>
</ul>
Makes money by selling some ad space on its sites and through referral.
They say: “When you click through to or apply with a financial institution, broker or retailer from our website, that provider will pay us a small referral fee for sending you to there. We don't mark up the products just for listing them on our website, and we don't get ongoing or trailing commissions.”
<ul>
<li>InfoChoice.com.au</li>
</ul>
Charges fees to some institutions and advertisers which are negotiated on a case-by-case basis.
Some businesses pay InfoChoice subscription fees for using its data. Or, it may charge fixed cost development, licensing and hosting fees for the use of its financial calculators.
InfoChoice also receives fees from product providers for product advertisements on its website. The advertising fee may be based on a cost per impression or fixed monthly sponsorship fee. Referrals from the InfoChoice website may also earn the comparator a cost per click, a cost per application or a cost per lead for enquiries. It can also take a commission on referrals to third party advice providers such as mortgage brokers.
<ul>
<li>Mozo.com.au</li>
</ul>
Like Finder.com.au, Mozo makes money from advertising and referrals.
They say: “Mozo makes money in two ways. We sometimes charge a fee to financial institutions when we transfer potential customers to them, for example if you click on ‘Go to Site’ once you've found a great deal using Mozo. In some instances we link through to financial institutions without charging a fee in order to provide a service to you. We also host a small amount of advertising on the site to keep you up to date with the latest offers.”
<ul>
<li>Ratecity.com.au</li>
</ul>
Makes money from display advertising and by generating qualified leads for financial institutions. Leads are created when consumers visit the financial institution’s website via a link from the RateCity website. RateCity gets paid either for the click, or for transacting with the financial institution by opening an account or applying for a product online for instance.
It may also receive referral fees from brokers or financial advisers when the consumer requests that their details are passed on.  
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How mortgage comparison websites make money

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Money Magazine has given loans.com.au the title of the Best Cheapest Home Loan and the Cheapest Flexible Home Loan for non-banks in 2015.
Last year saw loans.com.au take out the Best Cheapest Home Loan award as well, and this year’s broadening of the flexible category to non-banks allowed the lender to compete, explained Kim Cannon, managing director of loans.com.au’s Firstmac.
Dream Home Loan is loans.com.au’s flagship product that took out the awards. It has a 100% offset and free redraw at a rate of 4.48% (comparison 4.50%) to 90% LVR. It also offers a value pack with a $150 conveyancing voucher, financial planning up to $500, property reports and a Loan Tracker service.
“Loans.com.au has seen strong growth in the number of customers who are keen to do their own research to identify the best home loan product for them, and they are more empowered in the application process,” Cannon said.
“They make an informed choice to have more input into the application process by following through on their internet research and applying for their home loan online.”
He said that increasingly borrowers are looking to do their home loan applications online in a paperless process due to working hours, and then fill out necessary forms during lunch hour at a branch.
“A streamlined application with online tools to track each step of the process is far more appealing to smart, busy, borrowers than having to call the bank and check whether the application has progressed, or make an appointment to fit into someone else’s schedule.”
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The lowest cost non-bank loan available for 2015 announced

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Bill Evans, who has been cheekily dubbed the interest rate whisperer by the Daily Telegraph's business columnist Scott Rochfort, has issued a revised 2015 rates advisory.
"While we still expect rates to be on the rise in 2016 as the world economy gathers considerable momentum, we now expect the RBA to cut rates further in the early months of 2015 in an effort to bolster domestic demand and lower the AUD before evidence on the world economy becomes clearer around the middle of the year," he said.
"We now expect the RBA to cut rates by 25bps in February and again in March prior to another period of stability."
The surprise call came on late Thursday afternoon shortly after Deutsche Bank and Goldman Sachs made similar forecasts amid signs the slowing pace of economic growth in Australia.
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Evans noted on housing, the RBA has sensed a clear moderation in price appreciation in recent months. 
"The Bank also has some scope to use macro prudential tools to contain any further sharp upswing in investor housing activity, if it were to occur," Evans said.
"Of course the next Board meeting is not until 3 February and much could change over that period."
</div>
</div>
</div>
</div>
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Rates to drop, then rise in 2015: Westpac's Bill Evans

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GUEST OBSERVATION
We are noticing that there has been a marked increase in audit activity by the ATO over recent time.  
Everyone dreads the thought of an ATO audit but it doesn’t have to be that stressful, especially if you know how to handle the situation. 
Firstly if you do get that dreaded ‘knock on the door’, immediately contact your accountant and ask for their professional guidance and assistance.  This may incur a cost, but for peace of mind it is money well spent. 
Your accountant will act as your agent and will have direct contact with the ATO.  They can understand and speak tax office lingo and know how to answer their questions without raising further questions, plus will hold your hand throughout the process so that you may never have to get involved, other than providing them with any initial and/or ongoing information. 
<h3>Any ATO audit can typically be broken down into seven basic stages:</h3>
<ol start="1">
<li>Initiation</li>
<li>Information gathering</li>
<li>The issue of a facts/position paper</li>
<li>The taxpayer’s response</li>
<li>The issue of assessments</li>
<li>Objections and</li>
<li>Settlements and alternative dispute resolution</li>
</ol>
<h3>There are 2 types of ATO investigations:</h3>
<ul>
<li>Review </li>
</ul>
The ATO use reviews to investigate inconsistencies or risks about some activities, transactions or industries and try to confirm the risks. During a review they look for ways to help you comply with tax obligations. They will give you the opportunity to correct any errors by making a voluntary disclosure. If you do not make a voluntary disclosure, they may decide to escalate the review to an audit.
<ul>
<li>Audits</li>
</ul>
The ATO use audits to find, measure and correct errors. Some audits follow on from reviews where they confirmed there was a risk.
Some audits will commence without first doing a review where, from the available information, they know there is a risk. If an audit commences without a review first happening, generally you will be given an opportunity to make a voluntary disclosure.
<h3>Complexity</h3>
The reviews or audits the ATO conduct vary in their complexity. Usually they only involve a phone call or a letter asking you or your accountant to provide further information or verify your claims.
In some cases however, a tax officer may visit you (although this is rare), or you may be asked to bring all your records for examination. They sometimes may decide to look more closely at tax returns making similar claims, or from within the same industry. 
<h3>Property Investors</h3>
Property investors always seem to be a target as there are usually large claims in the individual’s tax returns.  T
he areas that generally let property investors down in an audit are, claiming costs for a capital improvement as a repair and maintenance.  For example the cost of replacing an old kitchen with a new kitchen is a capital expense and should be depreciated over time v written off against the income immediately. 
Other areas are, incorrect claims of  the interest on borrowings, and inaccurate capital gains disclosures on the sale of a property.
When the ATO come knocking this is what they are looking for
1.            That you have declared all the income you have received
2.            That you have claimed the appropriate deductions against this income
3.            That you have claimed the correct credits or offsets
4.            That you have correctly withheld and reported PAYG amounts
5.            That you have correctly reported any other tax-related obligations
<h3>Audit Insurance</h3>
As a safety net, audit insurance is something worth considering.  For a very small annual premium you can have peace of mind in that if you are selected for a review or audit, and depending on the policy, the majority of your professional fees you pay to the accountant to assist you with the process, will be covered. 
David Naylor is non-executive chairman and co founder of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a>.
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.
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