The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

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>
The Reserve Bank of Australia has advised property investors to be “realistic” about price rises in their forecast new era of slower price growth.
The long-run future growth in dwelling prices might be more in line with income growth rather that hot to trot.
The RBA noted increases in investor activity had been evident in the recent pick-up in Sydney housing price growth which had been accompanied by reports of sale prices exceeding price guidance and valuations by wide margins.
It added the increase in housing market activity was not surprising given reductions in interest rates.
"However, it is important that those purchasing property maintain realistic expectations of future dwelling price growth; in contrast to the decades leading up to the crisis – when dwelling prices grew rapidly in response to disinflation and financial deregulation – long-run future growth in dwelling prices might be expected to be more in line with income growth."
Another words temper the current rush of buyers into the property market which is creating pockets of price silliness.
It noted the increase in investor activity in New South Wales appeared to have been particularly sharp with investor housing loan approvals accounting for around 40% of the value of loan approvals in NSW, a share last recorded in 2004.
The percentage dominance had coincided with the decline in first home buyer activity which has dropped from well below normal levels given the redirection of government subsidies away from established to new homes.
Just whether the RBA's worldly warnings are duly noted and ignored by the investor market will be worth watching, especially as landlords are facing a reduction in rental returns given the shifting sands of supply and demand.
It could be argued the market is already doing the RBA's work with Residex reporting Sydney unit rents are down 3.85% in the year to August from $520 a week to $500.
Melbourne unit rentals were down 6% to $385 a week. And Canberra's unit rentals fell 12% over the year to $425 a week. Brisbane's rents down 6% to $375 a week. Perth's weekly rent of $430 a week was off by 8% according to Residex.
Nationally unit rents fell over the past year by 5.8% to $400 a week, while house rents were steady at $405 a week.  
Ofcourse much goes to the intent of the investors. Australia already has 1.7 million investors, most of whom have just the one investment property, and with some two thirds negative gearers. 
Jonathan Mott, the UBS banking analyst, issued an interesting advisory note yesterday titled, Investment Property – Speculators, spivs and tax dodgers?
He went on to say an overly high proportion of investment properties are purchased for expected capital gains (speculation) and tax minimisation (tax dodgers), rather than for rental income as seen in other countries.
Mott suggests the extraordinary leverage of Australian property investors is either the result of a national aversion to paying tax or a greater culture of speculation than other Anglosphere nations.
He says the significant growth in negatively geared investment property over the last 20 years should be of concern.
"While unemployment is low, investment property owners can afford to carry the negative cash flow, especially as they are rewarded with the ability to split the costs with the Government and they anticipate future capital returns."
Mott then posed the question: "But what happens if the unemployment rate rises further?"
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jchancellor-FAypfDUnLy

RBA warns investors not to rush in as Sydney unit rents start falling anyway

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Hi Margaret,
We bought 1.33 acres of land in a subdivision on at the end of last year with the hopes of building a home on it in 2014. Since we bought the land my husband was in a pretty bad work accident and our plans to build a home have changed. 
We would like to put the land up for sale now but have questions on the capital gains that we may owe since we have not owned it for a year yet. We paid $35,000 and are not looking to make a profit on it when we sell. 
Help!
Shawn


<hr>
Hi Shawn,
When you buy any property as an investment, it immediately begins attracting capital gains tax (CGT).  CGT applies to all property you own, regardless of whether you intend for it to make a profit for you (as in a pure investment) or whether you think you might use it at some time in the future for yourself.
Your own home, or principal place of residence, is exempt from CGT, but you can only claim one property at any one time for that exemption. It must also be a property which is your bona fide principal place of residence (unless you are invoking the six year rule which allows you to move out of a principal place of residence for up to six years). 
The rate of tax is determined by how long you held the asset for – in the case of property, you get a 50% discount if it is over 12 months and you pay full tax (according to your own marginal rate of income tax) for any asset held less than that period of time.
In your case you purchased this acreage for the purposes of building your own home, but at no time has it been your principal place of residence and so you may have a CGT liability, at the full rate, if the contract for sale is signed within 12 months of you signing your own contract when you purchased.
However if, as you say, you do not intend to make a profit, you may instead have a capital loss. This is because your cost base (that is the starting value) is the purchase price plus costs to buy, and your ‘proceeds’ figure is the sale price less any cost to sell. In addition, the interest on any loan you had to hold this land, plus any costs you incurred while you held it (such as rates), add to the cost base, effectively reducing the difference even further!  
This difference becomes the gain, or loss.  If you sell for a similar price to that which you paid, once you account for all of the costs I mentioned, you will be more than likely to have a loss and there will be no tax.  However there will be no tax deduction either, as this loss can only be carried forward indefinitely to be written off against any future capital gain you may make from other investments.
You should be sure to get some good guidance from an accountant around what you can and cannot claim prior to making the sale.
Regards,
Margaret

<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. 
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
 
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mlomas-KC9MUPZ6Ca

Do I have to pay capital gains tax on land I haven't owned for a year? Ask Margaret 

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Time and again we're hearing people say that the Reserve Bank's plan to stimulate dwelling construction has "failed", and that due to high land prices, very little residential construction will take place. These are often the same voices who have consistently called the end of the world, and they've largely been wrong to date.
Anyway, more importantly, is it actually true?
The Australian Bureau of Statistics (ABS) showed that in the year to June 2013, residential construction work done increased by a <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8755.0" target="_blank">seasonally adjusted 4.3%</a>.
<a href="https://1.bp.blogspot.com/-ciM_28N9zGs/Uj2RGpdg23I/AAAAAAAAKTE/FfgZLeQI8Bc/s1600/ABS+resi.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img border="0" height="67" src="https://1.bp.blogspot.com/-ciM_28N9zGs/Uj2RGpdg23I/AAAAAAAAKTE/FfgZLeQI8Bc/s400/ABS+resi.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;"></a>
Source: ABS
For sure, this is not a major increase, but nevertheless it is an increase. Moreover, it makes no sense to judge the results to date without considering the prospects for the future.
The current interest rate easing cycle started on November 1 in 2011 - so the downwards trend in interest rates is not even two years old yet. The most recent interest rate cut only took place on August 6 2013, so how can you write off residential construction when rates can take a couple of years to impact the economy in full?
It's worth remembering that as recently as three months ago people were saying that dwelling prices were falling, yet just a matter of weeks later, they've now reverted to talking about overheating markets and price bubbles.
Again, the key point is that interest rate cuts do not instantaneously impact the economy and markets - monetary policy takes time to work. This is particularly so with regards to construction - projects can take a good deal of time to be approved and financed, they do not simply appear overnight.
If construction levels haven't picked up by August 2015, then I would have to concede that the RBA's plan may be doomed to failure, but it's too early to write it off given that rates have still been falling.
This week Commsec undertook an analysis of the ABS quarterly employment report for the three months to August 2013. Unfortunately, the manufacturing and retail sectors remain weak, yet take a look at the incredible boom in construction jobs - up by 55,800 workers in three months - that's the greatest increase in over a decade of data.
I don't know about you, but that rather looks to me as though residential construction is likely to take off (although it's true that ABS labour force numbers could sometimes be accused of being 'volatile').
Reported <a href="https://www.smh.com.au/business/markets-live/markets-live-sugar-hit-for-stocks-20130919-2u0fb" target="_blank">Sydney Morning Herald</a>:
"Interestingly the construction sector was the biggest driver of jobs growth in the three months to August, creating almost 56,000 jobs. The strength in housing activity seems to be translating through to additional demand for construction workers. The fundamentals for housing remains strong."
 
<img alt="Job losses, and gains" height="225" src="https://images.smh.com.au/2013/09/19/4761471/employment-620x349.jpg" width="400" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
The ABS housing finance data for dwelling construction provides another clue, ticking up for eight consecutive months:
"The number of finance commitments for the construction of dwellings for owner occupation (trend) rose 0.2% in July 2013, following a rise of 0.4% in June 2013. This is the eighth consecutive rise since December 2012. "
 
And the ABS residential building approvals data shows very large year on year seasonally adjusted increases:
<a href="https://1.bp.blogspot.com/-8mLUCwwcOr8/Uj2VoxdnmJI/AAAAAAAAKTQ/PBRNTADL6Ro/s1600/ABS2.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img border="0" height="113" src="https://1.bp.blogspot.com/-8mLUCwwcOr8/Uj2VoxdnmJI/AAAAAAAAKTQ/PBRNTADL6Ro/s400/ABS2.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;"></a>
Source: ABS
The building approvals trend is clearly up for both residential units...
<img alt="Graph: Dwelling units approved" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/0545ffc6a101264dca25719f007f6f1f/Body/0.1A56!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: ABS
And for privates sector houses...
<img alt="Graph: Private sector houses" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/0545ffc6a101264dca25719f007f6f1f/Body/0.25A8!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: ABS
The Reserve Bank felt that some upturn in dwelling prices was a necessary precursor to dwelling construction.
<a href="https://4.bp.blogspot.com/-KRYMVd-Z2ws/Uj2W4XGjzHI/AAAAAAAAKTc/A_FWyjXvzqY/s1600/RPD.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img border="0" height="235" src="https://4.bp.blogspot.com/-KRYMVd-Z2ws/Uj2W4XGjzHI/AAAAAAAAKTc/A_FWyjXvzqY/s400/RPD.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;"></a>
Source: RP Data
We've now had a little over a year of dwelling price increases pretty much everywhere except for Adelaide and perhaps Tasmania. It makes sense that construction activity would typically now follow. Those who say that the RBA's plan has "failed" therefore, have concluded prematurely.
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His latest book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
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pwargent-M4siyDbqQY

Has the RBA's plan to stimulate dwelling construction "failed"? Pete Wargent

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The sale of a property has GST implications and, potentially, income tax consequences. The GST implications can catch out those who are not fully conversant with how the GST laws apply.

A recent AAT decision held that, for the purposes of the GST law, all of the consideration in relation to the sale of a property was received by the taxpayer at the time of settlement on May 16, 2008, despite not all the consideration being received at that time.
Broadly, the case concerned the liability of the taxpayer (a trust, Rod Mathiesen Truck Hire Pty Ltd as trustee for the Matheson Family Trust) for GST in connection with the taxable supply of vacant land in Queensland. The tax commissioner assessed the trust on the basis that it received full consideration on the transfer of the property in the 2008 tax year in part through a vendor finance agreement (described as the settlement balance facility agreement). A director of Rod Mathiesen Truck Hire Pty Ltd, Mrs Mathiesen, signed the settlement balance facility agreement.
The trust had issued a tax invoice to the purchaser for $3.495 million, including $317,753.50 in GST. However, the trust argued that it was only liable for GST to the extent of two payments actually received for the property (around $2 million and $500,000), made in the 2008 and 2009 tax periods, and amounting to less than the full consideration.
The tribunal considered that the agreement clearly provided for a loan from the trust to the purchaser. It was of the view that Mrs Mathiesen had not formed any particular intention about lending money to the purchaser at the time the agreement was executed. The AAT said its impression was that “she signed what was presented to her as a means of ensuring the sale went ahead without considering what precisely the trust was agreeing to”.
After taking into account all of the circumstances referred to by the trust, the AAT said it did not accept that the loan, or creation of the loan debt, between the trust and the purchaser was incidental or ancillary to the supply under the contract for sale as envisaged in the cases and the commissioner’s ruling, but were distinct transactions.
In the result, the AAT found that for the purposes of the GST Act, all of the consideration in relation to the sale of the property was received by the trust at the time of settlement on May 16, 2008.
The ATO said the findings made by the tribunal were consistent with the principles set out in GST Rulings GSTR 2001/8 and 2003/12 and GST Determination GSTD 2004/4, and the commissioner’s submission made to the tribunal that:
<ul>
<li>
For a taxpayer who accounts on a cash basis, attribution of GST or an input tax credit is determined by the meaning of ‘consideration’ and whether ‘consideration’ was received or provided and not by reference to the ordinary meaning of ‘cash’;
</li>
<li>
In a vendor-financing arrangement, consideration is received by a supplier on set-off of the loan against amounts owing to the supplier by the purchaser;
</li>
<li>
The postponement of payment of a debt does not constitute a loan where the recipient remains obliged to pay for the supply under the original supply contract;
</li>
<li>
Where there is a contract for sale of land and a vendor-financing agreement, the financing agreement is not ancillary or incidental to the contract for the sale of land.
</li>
</ul>
At the risk of understatement, the application of GST in the context of property transactions is not always straightforward. Financial dealings between vendor and purchaser related to a sale can only serve to complicate matters. As always, good professional advice should be sought … and don’t sign anything without reading and understanding it first.
 
<hr>
 Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/" rel="nofollow">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
Featured product is the 2013-14 edition of The Essential SMSF Guide, written by Tony Negline – see details <a href="https://www.propertyobserver.com.au/https://www.thomsonreuters.com.au/the-essential-smsf-guide-2013-14/productdetail/120644?utm_source=smartcompany&amp;utm_medium=webpage&amp;utm_campaign=smsf" rel="nofollow">here</a>.
This article originally appeared on <a href="https://www.smartcompany.com.au" target="_parent">SmartCompany</a>.
 
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thayes-XhNcNKLNWa

It's a trap! Watch out for GST on property transactions: Terry Hayes

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In every good fairytale there has to be a villain, a wicked evil doer seeking endless riches at the expense of the poor innocent townsfolk.
In the current fairytale of rising property prices in Australia it appears the banks have been cast in that role. In just the last few days I’ve heard of numerous warnings from domestic and international monetary policy bodies about the need for banks to retain firm lending policies. The release of the <a href="https://www.propertyobserver.com.au/finance/rba-says-it-could-still-lower-rates/2013091765068" target="_blank">minutes of the September Reserve Bank Board meeting</a> called on banks to retain prudent lending practices and the IMF has said the same. It is easy to blame the banks for fuelling property demand. With rates so low the competition for business is strong and money is as cheap now as it’s been for as long as I can remember.   It might be a little unfashionable to be calling for caution when the market is heating up faster than the spring temperatures but I continue to urge buyers and vendors to take it easy.   Yes the market is strong. Demand is there because there continues to be a shortage of properties. But it is important to retain reasonable expectations.  And that applies to those seeking finance.   Remember that real estate is a good news story but don’t forget that every fairytale has a villain and don’t get too carried away by the potential happily ever after.
 
<hr>
 Ewan Morton is managing director of the Sydney based <a rel="nofollow" href="https://www.mortonandmorton.com.au/" target="_blank">Morton &amp; Morton</a>.
 
 
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emorton-DecMjPQt5h

In the fairytale of rising property prices the banks have been cast as the villain: Ewan Morton

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Most people confuse cash-flow and gearing believing they're the same thing; they're not.
Cash-flow is the pre-tax income your investment property generates week after week, whilst gearing relates to how your investment property is financially structured after tax.
Few investors are aware that negative gearing is a financial trap. In a nutshell, negative gearing is where you lose money month in month out - because you believe the value of the property will increase sufficiently over the short term, to offset those monthly losses. Some people mistakenly believe that it's smart to invest purely for the tax benefit.
Smart investors however, know that negative cash-flow on a weekly to monthly basis does not facilitate a multi property portfolio.
Negative cash flow is when the expenses for a property exceed the income the property generates.
Some investors don't realise that negative cash-flow can also occur in positively geared properties as well. Longer-than-expected vacancy periods, major repairs, maintenance and other ongoing expenses can sometimes result in negative cash-flow, for a short period of time.
If you're property is positively geared and generating negative cash flow then you've probably run into some larger than normal expenses.
Tip - it's a good idea to keep a cash buffer of three months loan repayments in an offset account - it becomes useful when you have repairs or go through short term financial hardship.
Also don't ignore the fact that your property could be producing a negative cash flow because the market in which your property lives may be experiencing low rental demand. This could signal that it's time to renovate.
Nonetheless, in its purest sense negative cash-flow is highly disabling and will prevent you from going forward and growing your portfolio. A smart property adviser can help you reverse your negative cash-flow situation; often it's simply a case of restructuring your incorrect or impractical finance structure.
However - as is the case with negatively geared property - your income can only service a limited number of negative cash-flow properties .... before you start to feel financial strain.
 
<hr>
 Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank">Smart Property Adviser</a>.
Kevin specialises in helping investors identify and acquire positive cashflow properties that generate high rental returns, enabling his clients to grow their portfolios. 
Kevin's free report "How To Turn Your Negatively Geared Property Into A Positive One In 3 Steps - Without Selling" is available at <a href="https://www.smartpropertyadviser.com.au/" target="_blank">www.smartpropertyadviser.com.au</a>.
 
 
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klee-LzAEhB2j7n

Negative gearing is not the way forward: Kevin Lee

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The federal election has be run and won and with the Liberals getting a clear majority the uncertain political outlook has been put to bed. Property investors are timid beasts by nature and they want to know everything is safe before they make a move and a stable government will help with this psychology.  
Also helping investors feel comfortable is the fact ME Bank announced yesterday their three year fixed rate has been cut to 4.69%, the lowest level for 23 years.  
Property investors have already begun to re-enter the property market but these two events are only going to add to the momentum. They will begin to change their thinking from ‘if’ they should buy property to ‘what’ they should buy and will be torn between the logic of two radically different investment strategies.  
One says it’s always best to buy property that’s positively geared. This means that holding costs like council rates, insurance, maintenance and interest on the loan are less than the rental income received.  
The second argument says it’s better to buy property that’s negatively geared, meaning that holding costs are greater than the rental income received. You fund the shortfall from your own pocket, giving you a negative income which you then claim as a tax deduction.  
In reality, these arguments are doomed to go around in circles. There’s no one right or wrong answer that applies to every investor. Each purchasing strategy has its upside and downside; both of which should be considered before making a decision.  
Let’s start by looking at positively geared property. Generally speaking, the high-buy in price of most properties in capital cities means that to buy a positively geared asset, you must purchase in a regional or rural area where prices are lower. This may leave you with a relatively modest mortgage, making it easier to enter the property market, and easier to fund the holding costs from rental income alone.  
The downside, however, is that positively geared property may have a lower capital growth rate. Every property’s value is determined by the ratio of two components: the land and the building. Land appreciates, or grows in value, whilst buildings depreciate or fall in value.  
In regional and rural areas, land values per square metre tend to be low because there’s plenty of land available compared with the level of buyer demand. This means the building accounts for most of the asset’s value. The building may lose value faster than the land can gain value—hampering long-term capital growth.  
Let’s compare this with buying negatively geared property. When the buy in price is high, the land value probably is. This is the upside of negative gearing; you’re more likely to have purchased in an area with a limited supply of land relative to buyer demand. The land component makes up a higher proportion of the property’s overall value, giving the asset strong capital growth potential.  
On the downside, buying a negatively geared asset means that whilst your long-term risk may be lower, your short-term risk may be higher because you have to find a way to fund the difference between holding costs and rental income from your own pocket. This can create cash flow pressure, particularly if you incur an unexpected expense such as an interest rate rise or urgent repair.  
In short, it’s a case of short-term gain and possible long-term pain (positively geared property) versus short-term pain for possible long-term gain (negatively geared property). To decide which is right for you, it’s important to assess your financial circumstances.  
First, consider your level of disposable income. If you have spare cash to cover the difference between your holding costs and rental income, buying a negatively geared property may be appropriate. On the other hand, if your budget is tight, negative gearing may be too hard an ask and a positively geared property may be a better way to go. The capital growth won’t be as strong, but at least you’ll be in the market.  
Second, consider how long you’ll be earning a good income. To ride out market fluctuations and recoup purchasing costs, property should be viewed as a long-term investment; at least seven to 10 years. If you’re close to retirement and a substantial drop in income isn’t far away, adopting a negatively geared strategy may not be viable. In this case, you should consider investment options that don’t require you to contribute funds from your own pocket. By contrast, if you’re many years away from retirement, you may have enough income over the long-term to fund the shortfall from your wage or salary.  
Whichever gearing strategy you choose, go into it with your eyes open.  
 
<hr>
 Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
 
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marmstrong-sd3emVLPPb

What’s the best investment strategy: positively or negatively geared property? Mark Armstrong

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Rising unemployment and the unwinding of the mining investment boom could contribute to one more cut for the RBA cash rate, according to the latest report by ANZ.
ANZ forecasts the rate to be cut further by 25 basis points to 2.25% in the last quarter of this year, and expects the rate to hold steady for 2014.
The report also notes that Australia is nearing the end of the easing cycle with policy rates already at very accommodative levels.
A further rate correction could present a medium-term opportunity for borrowers to lock in lower-term rates.
With the expectation that the US 10-year bond yield to end the year at around 3%, ANZ also forecasts that yields will be pushed above 3.5% by the end of 2014. ANZ also forecasts US economic growth to be around 3.1% for next year.
With a recovering global market, local market rates can expect to be driven higher. As such, ANZ expects the cash rate to rise in 2015.
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dleow-BGaNPbHWyK

One more cut expected for RBA cash rate: ANZ

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A short but sweet <a href="https://www.rba.gov.au/media-releases/2013/mr-13-17" target="_blank">statement on monetary policy</a> on Tuesday from the Reserve Bank confirmed that interest rates remain on hold at 2.50% as expected.
The wording of the statement is not strong, but you'd still have to think that the next movement in interest rates is likely to be downwards for a number of reasons.
Firstly, mining capital expenditure is forecast to fall significantly over the coming years.
Secondly, Monday's indicative inflation gauge showed that inflation remains benign.
Thirdly, Tuesday's retail figures were weak again, showing an increase of only 0.1% for the month of July, which was below market expectations.
The trend estimate for retail sales looks to be very weak, although we retain hope that this will pick up over the coming year with the housing market recovery becoming ever more established with each passing month.
Fourthly, and finally, the indicators are pointing towards a weak GDP print tomorrow. Westpac is sticking with its forecast of 0.6% growth for the quarter, but there would appear to be a number of downside risks to that view.
Naturally, the RBA will continue to be wary of triggering a housing bubble in the second hand property market, but price growth looks to be mainly a Sydney story at the moment.
<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
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Four reasons why the RBA may have an easing bias: Pete Wargent 

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 The Australian Securities and Investments Commissions’ concerns about aggressive marketing of many geared property investment strategies in SMSFs has been endorsed by the SMSF Professionals’ Association of Australia (SPAA).
Referring to the increase of unscrupulous targeting of SMSFs, particularly in the property space, SPAA senior manager, technical &amp; policy, Jordan George, said that while there is a role for gearing into property through an SMSF, it should only be where trustees have access to best-practice advice from a licensed, qualified advisor.
“In a recent speech to the Tax Institute National Superannuation Conference, ASIC Commissioner Greg Tanzer expressed concern that some trustees were not receiving such advice, simply reinforcing what SPAA has been saying on this issue for the past year,” George said.
However, despite concerns about any increases of unscrupulous activity, he said that it was still not a widely used strategy.
“That said SPAA believes it’s worth noting that despite all the ‘talk’ around this issue, it’s still only a strategy used by a small minority of trustees.
“In our view talk of SMSF gearing being ‘out of control’ is simply not borne out by the facts. At June 2013, SMSF statistics show that only 0.5% of SMSF investments have limited recourse borrowing arrangements, and that this investment category has grown at less than 2% over the past four quarters to 30 June 2013.  This level of involvement has been confirmed by one of the big four banks.”
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