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>.

Joel Robinson

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

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

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

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National Australia Bank (NAB) is set to run advertisements that will correct their claims about home loan rates, after ASIC started a crackdown on false and misleading promotions in financial services.
The initial NAB promotional material, a wrap around on The Sydney Morning Herald and The Age, claimed that they had “the lowest standard variable rate for more than five years”.
This was incorrect. They failed to explain that this was out of the four major banks and outside of this they have not had the lowest standard variable rate for this time.
Advertisements will run in tomorrow’s Sydney Morning Herald and The Age to correct this.
ASIC deputy chairman Peter Kell said that it’s crucial all firms ensure financial promotions are clear, fair and not misleading.
“Buying a home can be a very big step in someone’s life and claims about the cost of a home loan can dramatically impact that decision, so it is vital that these are accurate and truthful,” said Kell.
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NAB misleading home loan rates in ASIC spotlight

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Macquarie Group research suggests Westpac was the most exposed to the property investor market, with investor lending accounting for 44% of its mortgage book.
Some 34% of CBA's book is investor lending, 29% at the ANZ and 28% at the NAB.
Westpac has the greatest exposure to the New South Wales property investor market.
The introduction of macroprudential policy to slow growth in parts of the residential property market could result in a decline in credit growth of as much as 7%, according to the Macquarie Group research.
It also concluded macroprudential policy could result in a 1% fall in big bank earnings, the banking website <a href="https://www.bankingday.com/nl06_news_selected.php?act=2&amp;stream=1&amp;selkey=17628&amp;hlc=2&amp;hlw=" target="_blank">BankingDay</a> reported.
UBS analyst Jonathan Mott recently said that after the financial system inquiry, it was inevitable the major banks will be required to hold more capital; with the requirement in the form of higher mortgage risk weights and additional capital buffers. 
Macquarie is expecting ANZ to report a net profit of $6.9 billion (up from $6.3 billion), when it releases its 2013/14 financial report this week. 
It expects Westpac to report a net profit of $7.5 billion (up from $6.8 billion).
And it expects NAB to report a net profit of $4.9 billion (down from $5.4 billion). NAB has already announced a $964 provision relating to UK conduct charges.
Macquarie analyst Mike Wiblin said the banks would ultimately pass on the costs of higher capital to customers by reducing the interest rate paid on their deposits.
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Westpac most exposed to property investor mortgage market

<html><body>
It’s not uncommon for lenders to increase their stable of products, reduce rates or even offer cash back incentives to appear more attractive to consumers.
Now online lender loans.com.au is in on the act, launching their value pack, which includes free property reports, financing planning and a conveyancing voucher with their home loan, which was named Australia’s cheapest in 2014 by Mozo.
The pack includes a 4.54% interest rate, with 4.56% comparison rate, a $150 conveyancing voucher, 100% offset facility, “Loan Tracker” service, $500 worth of financial planning and competitive home and contents insurance rates.
Kim Cannon, managing director of Firstmac, who are behind loans.com.au, said that the market has been flooded by borrower incentives in recent months, making it difficult to identify good value.
“The true cost or value of a home loan shows in the comparison rate, so borrowers should always look for the lowest interest rate and the comparison rate should be very close to the interest rate,” said Cannon.
Despite this, he doesn’t consider their new value pack to be a gimmick “like cash back that coincides with the date”.
“The value pack offers customers tangible benefits in a timely way, with property reports to help make the purchasing decision with confidence, discounts and vouchers to make conveyancing and insurance cheaper, Loan Tracker to streamline the application process, and financial planning to keep financial goals on track.”
Previously, <a href="/expert-insights/finance/competition-among-lenders-heats-up">Property Observer reported that six lenders have cash-back offers for home loan customers</a>. These include NAB, Newcastle Permanent and Commonwealth Bank, which are all offering up to $1,000 cash back. Heritage Bank and Homeloans.com.au are offering $600 and Austral Mortgage is giving back $500. A further 11 offer to waive fees.
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Lenders add whistles and bells to remain competitive

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The Real Estate Institute of New South Wales has called on the Reserve Bank of Australia to avoid restricting the property market by pushing up interest rates and expressed their disappointment at RBA governor Glenn Stevens’ property warnings.
REINSW president Malcolm Gunning said that six months ago Stevens was encouraging investment in real estate.
“Now that the public is buying properties with confidence the RBA has changed its mind and is being critical, giving warnings about investing in an over inflated market,” Gunning said.
“We are very disappointed that RBA Governor Glenn Stevens is trying to restrict investment in property by sending out warnings about buying property.”
He said that they are not only disappointed that the RBA is providing this advice, but also that they have “singled out” property.
“The fact is that investors are more confident about putting their money in Australian property compared to the uncertainty of the share market and the underlying mistrust of this sector following on from the GFC,” he said.
Gunning said that they admit that low LVRs of 95% are dangerous, but notes that the practice should be curbed by asking banks to be more responsible with their lending, rather than turning to interest rates to restrict the market.
“Using a broad tool such as interest rates to affect one sector of the market is unjust on all areas of the market and is inappropriate,” he said, noting they’ve regularly been used as a quick fix.
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REINSW admits 95% LVRs are dangerous, but warns off inappropriate RBA rate hikes

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Everyone knows Harvey Norman co-founder Gerry Harvey will want to mop up the last of his debt, but the Australian Taxation Office will also be watching closely when the first of former mining magnate Nathan Tinkler's four stud farm auctions gets underway this Thursday.
The Tax Office has taken the unusual step of registering two mortgages over the stud farms following their recent deed of settlement with the coal baron.
Title searches show one deed relates to a $20.1 million debt, signed last month between the Tax Commissioner and Tinkler himself (and witnessed by his sister Donna), five Patinack entities, and the companies that own the Newcastle Jets A-League team and formerly owned the Newcastle Knights rugby league team.
A separate deed over a $19.5 million debt, signed in May, is between the Tax Commissioner, the Tinkler group of companies and four Patinack Farm entities.
Tinkler reportedly owed Harvey about $40 million and was forced to break up his beloved Patinack Farm operation after a touted $130 million sale to a Middle Eastern consortium, led by <a href="https://www.crikey.com.au/2014/06/17/the-shadowy-bizarre-company-that-bought-tinklers-stud/" target="_blank">mysterious Dubai-based Cibola Capital</a>, fell through earlier this year.
A four-day total stud dispersal sale at Harvey’s Magic Millions auctions on the Gold Coast netted $34 million. Reports suggested Harvey has either been paid in full or was close to being extinguished. It is unclear whether the Tax Office ranks ahead of Harvey, or vice versa.
Listing agents expect somewhere between $43 million and $60 million is likely to be recouped in the four stud farm sales over the next fortnight.
The <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.afr.com%2fp%2fbusiness%2fcompanies%2fcould_nathan_tinkler_get_rich_on_BxEbmluMbhwE6sxjmsXAyH" target="_blank">Australian Financial Review reckoned</a> the sales would leave Tinkler with a fortune of $50 million to “play with” but the tally does not include outstanding tax debts, or the other unpaid creditors lining up against him.
Auditors Ernst and Young filed a wind-up application against a number of the Patinack Farm entities in July, andCrikey is aware of numerous other claimants who say they are owed money by Tinkler.
Once a billionaire, Tinkler had hoped to use the proceeds of the Patinack Farm sale to fund a comeback in the coal industry, but <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.crikey.com.au%2f2014%2f08%2f27%2ftinklers-last-roll-of-the-dice-to-get-back-into-the-coal-game%2f%3fwpmp_switcher%3dmobile" target="_blank">a deal to buy the mothballed Wilkie Creek mine</a> from American giant Peabody Energy collapsed in August.
A former mine electrician from the Hunter Valley, Tinkler struck it rich in 2008 when he sold his stake in the Middlemount coal project to Macarthur Coal, reaping a $442 million cash windfall. In a giant shopping spree he snapped up mansions, jets, supercars and football teams and blew an unprecedented $300 million to establish his own racing dynasty, Patinack Farm, fulfilling a childhood dream. Over the past two years, Tinkler has lost control of most of his assets. The NRL <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.theherald.com.au%2fstory%2f2364195%2fgame-over-how-tinkler-lost-the-knights%2f" target="_blank">took ownership of the Knights in June</a>, and the Jets are for sale.
Patinack Farm, Canungra, Queensland, is the initial offering, with 447 hectares comprising four properties known as Wadham Park, Elysian Fields, Benobble and Sarahvale listed through LJ Hooker Surfers Paradise.
The price estimates for the four ­Canungra properties range from $18 million to $23 million in total.
LJ Hooker agent ­Cameron McPhie has advised at least five international buyers have inspected the property, with three from Hong Kong, and one from Europe and one from the US.
Next week, Patinack Farm's Hunter Valley ­complex, Richmond Grove Stud, a 1337-hectare property goes under the hammer, likely to fetch between $17 million and $25 million.
Patinack Farm's 1397-hectare Tremayne property in Broke will also go up for October 30 auction with sale estimates around $6-$9 million.
The final Patinack property Banoon, in Monegeetta, Victoria, has been scheduled for an October 31 auction with Keating Real Estate suggesting a sale between $2 million and $3 million, which would represent a loss.
*Paddy Manning is the author of <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.blackincbooks.com%2fbooks%2fboganaire" target="_blank">Boganaire: The Rise and Fall of Nathan Tinkler</a>, published by Black Inc and available in bookstores now (RRP $29.99).
This article first appeared on <a href="https://www.crikey.com.au" target="_blank">Crikey</a>.
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Nathan Tinkler horse stud farm sales come with ATO mortgages

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Guest observation
Buying your first property, whether for yourself or as an investment, is arguably the most significant financial decision you'll ever make.
I've advised dozens of first home buyers and have seen how mistakes can be made due to inexperience and emotions. Some mistakes can have disastrous financial consequences.
So here are my top legal tips for first home buyers:
<ol>
<li> Never trust a real estate agent. They are not working in your interests: they are there to sell their client's property. While some of my dearest friends are agents, I'd never take anything they'd say about someone else's property at face value. If they claim pets are allowed, check with the Owners Corporation or Body Corporate. If they say an off-the-plan apartment will be a certain size, ensure it's written into the contract. If they tell you to hurry and sign the contract before "it's too late", make sure you're had a lawyer look at it first. While it can feel like you've found "the one" and your heart is set on it, there are new properties coming onto the market every day of the week. It's just not worth risking your financial security by being reckless and rushing. Take the leap when you're ready: not when the agent is. 
</li>
<li>Don't assume anything, check! You might have grand plans for the future, but don't assume this is legally possible. Do your homework in advance. If you are thinking about knocking down an old house and building a new one, check with the Council that this is permitted under the planning scheme and make sure you know if there any easements that you could be prevented from building over. If you are planning to run a business out of an apartment, check that the Owners Corporation or Body Corporate rules allow this. If you're buying an investment property, get an independent rental appraisal. Be armed with all the information you need in order to make an informed decision - and to avoid nasty surprises. 
</li>
<li>Be careful with off-the-plan apartments. Spacious and well-lit display units are not a representation of your finished off-the-plan apartment. The fine print of the contract will make it clear that you cannot rely on what you see in a display unit. Some smallish one bedroom apartments can be difficult to obtain finance for. Aim to specify in the contract as much detail as possible about the fixtures and fittings. The developer will have the right to substitute these for similar brands, which is why it is important to specify a quality baseline brand. Off-the-plan developments can take up to five years to finish and the contract will specify a "sunset" date. The agent might say "x months until completion", but be prepared for the full period to run as set out in the contract. 
</li>
<li>Thoroughly inspect the property first. With an existing home, the condition that the property is in on the day you sign the contract is the condition you should expect to receive the property in. If the oven wasn't working on the date of sale, bad luck. Turning on all appliances, checking all light fittings, flushing all toilets and turning on all taps will give you an accurate picture of the state of the property. Look closely for newly painted gutters and window sills: are they masking rot or rust? Jump up and down on wooden floors – are they squeaky and uneven, indicating stump damage? You may even engage an independent building inspector and/or pest inspector to check for invisible but expensive problems like terminate infestation. Knowing exactly what you're signing up to can be a handy price bargaining chip when negotiating a private sale, but at the very least you'll know what you'll need to budget for by way of repairs.</li>
</ol>
Knowledge is power: happy house hunting!
Kate Ashmor is the principal of her own law firm, <a href="https://www.ashmorlegal.com.au" target="_blank">Ashmor Legal</a>, focusing on conveyancing. She also serves as deputy chair of Caulfield Park Bendigo Bank and as a board member of Alola Australia. She's the immediate past president of Australian Women Lawyers and <a href="https://www.womensagenda.com.au/" target="_blank">Women's Agenda</a>'s chief legal columnist.
 
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The essential legal tips for first home buyers

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Major infrastructure projects planned around the country could lead to a spate of compulsory property acquisitions and affected land owners are being warned to ensure they receive their full entitlements.
In one of the latest examples, Brisbane City Council announced in early October that it would resume 38 properties on Lytton Road as part of the Wynnum Road corridor upgrade.
Slater and Gordon practice leader Vincent Butcher said owners of affected properties on Lytton Road would know about the acquisitions by now and should already be seeking advice.
The acquisitions are scheduled to take place from mid-2016 through to 2017 with construction expected to begin in early 2018, according to Brisbane City Council.
"The acquiring authority is not going to hold their hand," Butcher said. "Land holders must be vigilant in getting the right entitlements. They can vary significantly depending on the acquisition and the timing."
Governments sometimes need to acquire, or resume, land owned by private individuals and businesses to make way for projects such as road and rail expansions, new electricity, gas or oil facilities, or public buildings like hospitals.
When this happens, the first step in the process is that the acquiring authority must serve a notice of intention to resume, which is an official document. That's not necessarily a letter of offer for compensation, Butcher explained.
Compulsory land acquisitions are subject to a legal process where affected owners have statutory and common law rights. They have three years from a specified date to come to a resumption agreement with the acquiring authority.
"It's better to get advice early rather than wait to a later time," Butcher said. "The reason for that is that once that [three year] statutory period expires they are exempt from making claims."
An acquiring authority can make an offer but typically the owner must obtain their own legal and valuation advice and put forward a compensation claim. That includes the market value of the property and also claims for extensive disturbance, which depend on each individual case.
Legal and valuation advice costs form part of the disturbance claim, so it makes sense to get the best advice available, explained Butcher.
One property owner may receive a different compensation figure from their next door neighbour even if the market value of their properties is identical, he said.
Butcher said land resumptions were a niche area that involved both valuation and legal advice, and it was important that land owners approached parties that specialised in the areas and worked well together.
"They need to get the right people to do the right job because you only get one chance," he said.
In one case Butcher worked on in Queensland, which concluded about 18 months ago, the land owner received eight times more than the initial compensation offer.
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What to do when you have to give up your property for new infrastructure

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Property fraud is one of the worst nightmares of home owners, with recent reports of unidentified third parties attempting to sell other peoples’ homes while the owner is abroad.
In July, an owner was living in South Africa and <a href="/news/act/absentee-macgregor-landlord-loses-act-home-to-south-african-fraudster">found that his Canberra house had been sold </a>after contacting his ACT property manager, having not received four expected rental payments.
The ACT Police became involved to rectifying the issue.
However, what can you do to ensure that things don't get that far for your property? The Office of Regulatory Services has 15 steps that all property owners can take to protect themselves.
They note that investment properties are generally more at risk than owner-occupied homes.
The 15 steps to take:
<ol>
<li>Before selecting an agent, ask questions about their procedures when dealing with overseas owners. 
</li>
<li>Keep in regular contact with your agent. 
</li>
<li>Pre-establish security questions with your property manager/agent, that only you will be able to answer, and requesting these security questions be used whenever the property manager/agent contacts you. The security questions should be established verbally and not written in an email, as emails may be compromised if the account has been hacked. 
</li>
<li>Regularly check that your property manager/agent has your current and correct contact details on file. 
</li>
<li>Ensure that your property manager/agent has a process in place to verify any requests to change your contact details, for example by sending notifications to both the old and new addresses, both electronic and postal. 
</li>
<li>Ensure that your property manager/agent has your correct signature on file and that they check all signed documents to confirm the signatures match. 
</li>
<li>If travelling overseas, ask a family member or close friend to keep an eye on your property and to keep in contact with your property manager/agent on your behalf. This person should be introduced to the agent by you and security questions should be established for them as well. 
</li>
<li>If possible, keep in touch with neighbours so they can advise you of any changes in the property. 
</li>
<li>Check rental statements regularly. 
</li>
<li>Protect personal information by using secured mailboxes for mail deliveries and shredding or burning letters before disposing of them. 
</li>
<li>Be wary of giving personal and/or financial information to third parties, either by phone or email. 
</li>
<li>When replying to an email, typing the known genuine email address rather than simply clicking the ‘reply’ button – an email may have a hidden address in it. 
</li>
<li>Regularly change passwords for email and banking accounts. 
</li>
<li>Never click on any links contained in emails from unknown sources. 
</li>
<li>Install anti-virus/anti-malware software on personal computers and keep it up-to-date.
</li>
</ol>
 Source: Office of Regulatory Services
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15 steps to avoid property fraud: Office of Regulatory Services

<html><body>
Intention is the magic ingredient that dictates how a gain from subdivision is taxed, explains Property Tax Specialists’ Shukri Barbara.
If your intention is to realize the capital gain in a property then you will be taxed differently to if your intention is to make a profit in some fashion.
Barbara provides an example of a situation where the property is used as a main residence only. In 2013, the value has increased to $490,000 – when it was purchased in 2005 it cost $250,000.
They subdivide the block, and then sell the vacant land.
Barbara explains that for this specific situation, the gain is capital – with a 50% discount available as it is a “mere realization” of capital. In this case, the cost base of the vacant block would be based on the valuation from a valuer, the Development Application (DA) costs and any improvement required by council.
He suggests to only subdivide when ready to sell, as it allows the owner to maintain the capital gain exempt status for longest, as subdividing demonstrates intention as it is solely to realize capital gains.
Subdividing early and “waiting” is an indication of intention to a profit making undertaking, he warns.
It’s also worth noting that knocking down the main residence before selling significant changes the character of the asset, and may see capital gain tax (CGT) payable. Similarly, registering for GST can also be an indication of an intention to make profit.
Here’s another example:
A couple acquire a house in 2012 and lodge a DA in 2013 to knock down the existing houe, subdivide land and construct two townhouses.
The intention – that key word again – is to occupy one as the main residence, and sell the other one to help fund the main residence.
The owners have no background in building or associated industries and no history of development.
Barbara explains that in this situation it is likely the new main residence is exempt from CGT if it is established as main residence on purchase and is occupied for a period of, say, three months.
It must also be re-occupied within four years and the dwelling must be used for at least three months after completion.
If it is not treated in this way, CGT will be apportioned over time owned.
On the second part of the property, it will be taxed as business income.
GST implications include registration, GST on a portion of the sale price, credits on materials and services on purchase.
Barbara explains that if you sell the vacant block without development it is likely to be a capital 50% discount.
However, constructing and renting out the second block shows intention of investment, which on a later sale may access 50% discount but includes issues such as cash flow.
In fact, planning is critical. In some situations, Barbara notes that the numbers may actually find the after tax position preferably with the sale of the second block vacant rather than developed.
Barbara also warns that subdivisions cannot take place in a self-managed super fund for a number of reasons, mainly because it is high risk.
He notes that the intention is not required to be formally recorded anywhere, and the tax office bases intention on the way that the actions are taken out.
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Why CGT and subdivision is all about intention: Property Tax Specialists

<html><body>
If you’re buying a property or renovating this spring season, it’s worth considering how depreciation plays into the equation. Even a couple of small decisions can have a significant pay off.
Tyron Hyde, chief executive of quantity surveying firm Washington Brown explains that there are some items that can be depreciated at 100%. Essentially, this allows you to maximise your return from the start.
“Depreciation is really about claiming the wear and tear on your property, from carpets and blinds to ovens and dishwashers,” Hyde says.
“It’s a way to reduce your taxable income and it’s perfectly legal,” he says.
He suggests new buyers remember that new properties have a higher rate of depreciation, and that higher developments can have more claimed on them due to lifts and structural requirements.
Developments with pools and gyms can also often see more claimed, due to a higher ratio of plant and equipment to the purchase price, and he notes that lower priced properties have a higher depreciation ration.
Here are his four tips to remember:
<ol>
<li>
Individual items under $300 can be claimed immediately. If you’re buying a microwave, buy one that’s $299 instead of $319. This is better than depreciating it at the prime cost rate of 10% per annum (or $30 in the first year). That’s a 1000% increase. 
</li>
<li>
Big ticket items can be claimed too. If your portion of an expensive item is under $300, you can claim it. For example, a garage door costs $2,500 in a building of 10 units therefore your cost is $250. This amount can be depreciated immediately. 
</li>
<li>
Items valued between $300 and $1,000 can be depreciated at a higher rate. Through the low value pool method, you can claim these at a rate of 37.5%. So if you bought an oven for $950 you can claim $356. 
</li>
<li>
Split your report to get more. If you have bought a property as a group, say with family or friends, as your Quantity Surveyor to split the depreciation report between the investors to get more bang for your buck.</li>
</ol>
“Depreciation is the only non-cash deduction available to property investors,” says Hyde.
</body></html>

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