<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Joel Robinson

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.

Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.

“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.

That experience has translated into a collection of two, three, four and five-bedroom residences including two penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.

[smartcode_project:default project_id=140491 project_image_fid=284542]

S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.

“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.

The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;

“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.

“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”

[smartcode_project:default project_id=140491 project_image_fid=284543]

Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.

The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.

Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.

Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.

Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.

[smartcode_project:default project_id=140491 project_image_fid=284559]

Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.

“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.

The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.

A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.

S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.

“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.

[smartcode_project:default project_id=140491 project_image_fid=284555]

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;

According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.

There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.

Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.

Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.

“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.

[smartcode_project_cta:default project_id=140491]

How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.

Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.

"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.

"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."

[smartcode_project:default project_id=136992 project_image_fid=293151]

The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.

"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.

"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."

The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.

The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.

[smartcode_project:default project_id=136992 project_image_fid=293149]

The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.

That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.

"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.

"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.

"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."

Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.

One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.

[smartcode_project:default project_id=136992 project_image_fid=293155]

With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.

Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.

The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.

Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.

[smartcode_project:default project_id=136992 project_image_fid=293152]

For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.

"We were equally interested in the long-term future of Hope Island," he said.

"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."

Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.

Building 2 is under construction, with completion scheduled for 2027.

[smartcode_project_cta:default project_id=136992]

Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.

The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.

EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" />

Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.

The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.

The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.

Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.

A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.

SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.

The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.

A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.

The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.

Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.

SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.

"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.

The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" />

The site emerged following the subdivision of the former Roche campus into eastern and western parcels.

EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.

The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.

It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.

EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.

The current residential site represents the eastern portion of that original holding.

EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.

EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.

The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.

First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

SP Setia plans three-tower finale for Carlton’s former CUB precinct

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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Australia’s largest customer-owned financial institution, CUA will cut its one, two and three-year fixed rate home loans to 4.89% from June 26.
The credit union group has cut its basic three-year fixed-rate by 10 basis points, its two-year fixed rate by 16 basis points and its one-year fixed-rate by 21 basis points. CUA has also made rate cuts across its premium one, two and three year fixed-rate products.
It joins a growing number of lenders to have cut fixed-rates recently as demand for the products rises to around one in three borrowers, according to Mortgage Choice.
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CUA cuts one, two and three-year fixed-rates to 4.89%

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Mortgage arrears among prime borrowers remained stable in the first three months of 2013, helped by low interest rates, the latest Fitch Dinkum Index shows.
Fitch records a negligible 2 basis point rise in prime mortgages more than 30 days in arrears rising from 1.46% in the December quarter of 2012 to 1.48% in the first quarter of 2013.
Fitch also notes that loans between 30-59 days arrears were at 0.59% up from 0.55% in the December quarter, making it the lowest post-Christmas level since March 2006.
An increase in 30-59 days arrears in the first quarter is anticipated each year because the serviceability of Australian borrowers is temporarily affected by the holiday season and Christmas spending.
The figures are based on Fitch's analysis of mortgages bundled and sold by lenders to investors as residential mortgage-backed securities (RMBS).
However, of concern will be the rise in arrears for both the self-employed (low-doc loans) and those with poorest credit ratings (non-conforming low-doc loans).
Fitch records the proportion of non-conforming loans more than 30 days in arrears increased from 11.99% to 12.76% while low-doc loans arrears increased from 7.05% to 7.57%.
The graph below shows the stable low-arrears rates for prime mortgages (blue) and rising arrears rates for low doc and non-confirming loans (brown and green lines).
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/06/fitchjune24one.gif" rel="shadowbox"><img src="/images/stories/2013/06/fitchjune24onethumb.gif"></a>
"Self-employed borrowers are still experiencing financial distress and finding it difficult to cure their arrears," says Iselle Gonzalez, associate director at Fitch.
"Historically, low-doc borrowers have taken longer to adjust their spending and cure arrears due to the lumpy nature of the cash flows; Fitch believes this will continue."
According to Fitch, low-doc performance, can be an early indicator of financial distress among borrowers who do not have a stable income and are therefore sensitive to volatility in the economy.
Fitch explains that non-conforming mortgage lending standards do not meet the standard lending criteria of mainstream lenders and include lending to borrowers who have poor credit or payment histories. As a consequence non-conforming transactions tend to have high levels of delinquencies and defaults.
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Mortgage arrears rise for self-employed and credit impaired borrowers: Fitch

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When official interest rates move, mortgage borrowers have decisions to make.
Broadly speaking, you can stick with a variable rate loan which means paying the best market rate in any given month. Or, you can take a fixed rate mortgage where you lock in a rate for a set number of years.
Neither approach is risk-free. If you fix for three years you risk that during that time the variable rate will become cheaper, and you’ll be paying too much on your loan.
The reverse is that you have a variable rate loan during a time when the Reserve Bank puts up the cash rate, and your mortgage goes up too.
So what should borrowers be doing now?
You should think about two perspectives: interest rates and products.
Firstly, form a view on where interest rates are going.
We can gain insight into this by looking at what the professionals think: the ones to watch are the Reserve Bank of Australia and the banks’ swap rate markets.
The Reserve Bank has been cutting the cash rate since November 2011, and it is now at the historically low 2.75%. Will they cut further?
They’re giving themselves the permission to cut again. The latest decision in June included the statement that current inflation ‘might provide some scope for further easing’.
You have to balance that against the fixed rate market. Several lenders currently have 4.99% fixed loans for three years, which is a good deal compared to the best variable loans which are around 5.3%.
The markets that underpin fixed rate mortgages are the ‘swap rates’ – in the past three weeks they slid from around 3.2% to 2.9%, which indicates banks believe the price of money is dropping.
The job for anyone who wants to fix is to look at the RBA and the swap rates and make a determination as to how low the price of money goes and for how long.
You should also look at products. While variable rate mortgages are fairly simple market-linked loans, fixed rate mortgages have potential pitfalls.
If you take a fixed rate at 4.99%, you want to get further ahead than if you took a variable rate. So you want the lender to allow lump sums on the loan so you can pay it out fast. Many fixed rate loans only allow a fixed payment.
Secondly, watch for break fees on fixed loans. If you sell your home during your three-year term and pay out the mortgage, some loans require you to make good on the income the banks otherwise would have earned.
The third point is to know yourself. Some want the certainty of fixing at a low rate while others want the best market rate in any given month. It’s a personality thing and you should understand where you’re comfortable.
As always, be aware of the forces that work on your finances and be informed. If you’re confused, ask an adviser.
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Weighing up fixed vs variable interest rates: Mark Bouris

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Property investors should:
• Ensure they don’t overlook any of the many expenses that are immediately deductible in the income year of expenditure. These include interest on property loans, repairs and maintenance, insurance and land tax. (See strategy two for our comprehensive checklist.)
• Claim annual deductions over a number of years for the decline in value of removable depreciating assets. (Such items include stoves, blinds, dishwashers, carpets, hot-water systems and air-conditioners.)
• Claim capital works deductions, spread over a number of years, for certain capital expenditure. Capital works deductions are generally claimed for buildings as well as improvements such as adding a bedroom or remodelling a bathroom. (Investors can write-off 2.5 per cent a year of the construction costs for 40 years if construction began after September 15, 1987.)
• Add eligible capital expenditure to a property’s CGT cost base to reduce the CGT eventually payable. Capital expenditure includes the acquisition and disposal costs of a property – such as purchase cost of the property, conveyancing costs, advertising expenses, agent’s commission and stamp duty – and costs of improvement such as renovations. (All capital works deductions already claimed may reduce the cost base when eventually calculating capital gains upon the disposal of the property.)
• It is also possible to claim deductions over a number of years for certain borrowing expenses incurred involving a property loan. These expenses include loan establishment fees, title search fees, costs of preparing and filing mortgage documents, mortgage broker fees and stamp duty on the mortgage. (However, a borrowing expense of $100 or less can be wholly claimed upfront.)
See our eBook on the <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-top-24-tax-strategies">top 24 tax strategies</a> for property investors.
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mlaurence-vhAHaLZT8y

Understand different types of rental expenses and their tax treatment

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The majority of economists expect the cash rate to remain on hold on July 2, the latest Bloomberg survey reveals.
Of the 27 economists polled by this week, 22 tip the cash rate to remain at 2.75%.
This is almost unchanged from the June 7 forecast when 21 out of 26 economists said no rate cut in July.
AMP Capital Investors chief economist Shane Oliver and Stephen Koukoulas from Market Economics are among the five economists tipping a rate cut in July.
The others are from analysts Nomura Australia, Goldman Sachs and RBC Capital Markets.
Looking ahead to August 6, economists are almost equally divided with 14 tipping a rate cut to 2.5% and 13 expecting no change.
The minutes of the <a href="https://www.propertyobserver.com.au/residential/dwelling-prices-still-relatively-flat-but-housing-market-appeared-to-be-improving-rba-minutes/2013061862374" target="_blank">June RBA monetary policy meeting</a> said there was scope for further rate cuts if needed highlighting that previous rate cuts were supporting what appeared to be an improving housing market.
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Most economists tip no RBA cash rate cut in July: Bloomberg

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Mortgage market activity picked up by 5.2% in Tasmania over June, according to RP Data's Mortgage Index.
This compared with just 0.5% growth nationally with Victoria (2.1%) and Western Australia (2%) the only other two states to register notable gains over the month.
The data is correct up to June 16.
<img alt="mortgage_activity_june" height="255" width="470" src="/images/stories/2013/larry_uploads/mortgage_activity_june.jpg">
Mortgage activity appears to have flattened out:
<img alt="mortgage_index_graph" height="204" width="470" src="/images/stories/2013/larry_uploads/mortgage_index_graph.jpg">
RP Data systems monitor more than 100,000 mortgage activity events every month across our four main finance industry platforms providing a lead indicator to housing finance commitments.
The index shows an 81% correlation with the ABS housing finance data series (88% using the seasonally adjusted series). 
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Tasmania leads flat mortgage market in June: RP Data

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Buying the home you desire may require that you be able to borrow a large amount of money than originally intended.
There are a number of ways you can increase the size of your home loan, though always keep in mind that a larger loan size will mean higher mortgage repayments and these may rise if interest rates increase.
You should always have a buffer built into your budget to cater for rising repayments. And if rates do fall, then you can possibly put extra money into your home loan or invest it elsewhere.
Here are seven tips provided by mortgage broker Mortgage Choice:
1. Know what constitutes ‘genuine savings’ - Most lenders require you to have a deposit comprised of genuine savings. Typically, ‘genuine savings’ means money that has been saved over a period of at least three successive months. For most lenders, this excludes things like tax refunds, monetary gifts, the First Home Owners Grant, the sale of personal assets (like cars or jewelry) and lump sum annual leave payouts. Some lenders will consider some of these items when assessing your deposit, if you can provide a rental payment history, for example. To make the most of your savings, it is a good idea to get a grip on what each and every lender defines as ‘genuine savings’.
2. Maximise your deposit size - Lenders will look favourably on you if you have a large deposit, and a larger deposit can bring about a better chance of getting the lowest possible interest rate from a lender and the reassurance of already having equity in the property. 
Larger deposits also remove the cost of lenders’ mortgage insurance (LMI) as it is more commonly known. LMI protects the lender if you default on the loan and the home is sold for less than the lender is owed. LMI is required to be paid when you borrow more than 80% of the property’s value. The price of LMI can vary depending on the value and type of loan you have selected as well as the deposit you have saved. 
In addition to saving hard, another popular method is for parents or other family members to put forward a monetary gift towards a property purchase. In this instance, you must provide evidence that the gift is not repayable and sign a statutory declaration. Keep in mind that if you are using gifted funds you may still be required by a lender to contribute to the deposit up to 5% of the purchase price in the form of genuine savings. 
In each state and territory eligible first homebuyers may apply for a grant towards the purchase of their first home, which is known as the First Home Owner Grant. Recent changes in many states see the grant applicable on only newly built or off the plan property purchases, so be sure to investigate what is available in your state. First homebuyers should keep in mind there are different caps on the value of properties that can be purchased with the grant. There may also be concessions on stamp duty available to borrowers, which vary from state to state.
 First time buyers may also be able to increase their savings by opening a First Home Save Account. These accounts attract a lower rate of tax on the interest earned and each financial year a government contribution calculated on the personal contributions will be deposited. Savers using these accounts can still claim federal and state first homebuyer incentives, however before they can withdraw the funds to buy or build a home they must contribute at a minimum amount per year to the account in four financial years.
3. Reduce existing debt - Cut as much of your other debt as possible, such as car and other personal loans, credit and department store cards, and HECS debts. Be aware that with credit and store cards, the amount owed isn’t what matters to the lender, they’ll factor the overall credit limit into your ability to repay the loan.
Keep in mind that if you share a loan with a friend, spouse or sibling, and you want to take out another loan in your own name, most lenders will assess your loan application based on your ability to repay the full loan amount of the existing loan – not just the half that you’re paying back! This occurs with those particular lenders regardless of whether you already have an agreement with the co-borrower to manage that existing loan.
4. Clean up your credit file - Check whether you have multiple enquires or any defaults in your credit history. If this is the case for you, try to resolve them with the relevant credit provider before you apply for a home loan and if need be, provide an explanation to your lender. You can order a copy of your credit file from suppliers such as <a href="https://www.mycreditfile.com.au">www.mycreditfile.com.au</a>.
5. Ensure you have steady employment and regular savings - Lenders also want to see a steady recent employment record, eg. 6-12 months or more in your job, receiving regular income. If you are looking to change company at the same time you are looking to buy property, seriously reconsider one or the other. If you recently changed positions within a company due to a promotion or received a payrise, or changed jobs multiple times in a short period of time but they are all connected by industry, be sure to carefully explain that in the home loan application.
6. Submit satisfactory bank statements - Your recent bank statements should be free from any suspicious withdrawals or transfers such as movements of sizeable sums of money into or from your account/s. If this does occur, include an explanation for the transaction in your loan application. 
7. Shop around - Lastly, talk to an experienced mortgage broker who has access to a lender panel of at least 20, about the wide range of options available. There are many great deals out there at the moment thanks to hot competition between lenders both large and small. Also keep in mind that lenders’ approval measures vary, meaning different lenders can offer varied loan amounts to the same borrower. The same goes for interest rate, features, fees, accessibility and approval turnaround times. Be sure to compare your options.
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Getting a bigger home loan: Seven tips to boost your borrowing power

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 The Greater Building Society will cut its one-year fixed home loan rate by 0.20% from tomorrow (June 21).

The Greater’s one year packaged home loan (ultimate home loan) will reduce to 4.54% (comparison rate of 5.49%) - one of the lowest one-year fixed-rates on offer. 
Product manager David Bryde said the new rate is the lowest one year rate for a home loan that the Greater has ever offered.
Bryde said people taking out fixed-rate loans should ensure that they don’t unnecessarily sacrifice flexibility or fall victim to the “revert rate rort”. 
“With the Greater you get an incredibly low rate but can still make extra payments and redraws," Bryde said.
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Greater Building Society cuts one-year fixed-rate home loan to 4.54%

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Borrowers can save around $300 in fees over three years by taking out a variable rate mortgage with a credit union or building society compared with a major bank, research by the RBA has found.
Average fees for a mortgage with a building society or credit union over three years are $803 compared with $1,102 for major banks, $1,160 for other banks and $1,006 for other lenders (non-bank lenders), according to a new paper by Jessica Pratten from the RBA’s Domestic Markets Department.
<img height="253" width="470" src="/images/stories/2013/larry_uploads/bank_fees.jpg" alt="bank_fees">
The fees comprise home loan establishment fees, home loan service fees and loan discharge fees (excluding mortgage exit fees which are banned on variable mortgages).
The figures are based on a $250,000 loan to owner-occupier discharged after three years and includes standard variable and package products and are  a  weighted average based on the share of housing credit for each type of institution.
Since October 2010, the major banks and credit unions and building societies have cut mortgage fees by $19, other banks have cut them by $70 and other lenders by $194.
The major banks have cut services fees by $89 over this time frame but raised establishment fees ($8) and discharge fees ($62).
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Credit union and building society mortgage fees $300 cheaper than major banks: RBA

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There was a small decline in mortgage fees earned by banks over 2012 compared with a rise of 6.5% from 2006 to 2011 a new RBA paper shows.
Banks earned $1.218 billion in mortgage fees in 2012 compare with $1.222 billion in 2011 and $1.377 billion in 2010, according to a paper by Jessica Pratten from the RBA’s Domestic Markets Department.
Mortgage fees were second only to credit card fees ($1.312 billion) and deposit fees ($1.105 billion) earned by banks over 2012.
<img src="/images/stories/2013/RBA_graph.png" width="470" height="381" alt="RBA_graph">
Pratten notes that the slight decline in housing loan fee income occurred despite the 5% increase in mortgage lending over the year.
“This divergence partly reflected the decision by a number of banks to waive application and other fees.
“It also resulted from a continued fall in exit fee income following the Federal Government’s ban on exit fees on variable rate home loans in July 2011.
“In the lead-up to the ban there had been speculation that lenders would increase other fees to compensate for the potential loss of income.
“However, average fees (excluding exit fees) charged on variable rate mortgages discharged after three years have declined slightly for both bank and non-bank lenders since the ban was implemented," she says.
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