<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

<html><body>
Federal Treasurer Wayne Swan has claimed the Coalition’s paid parental leave scheme would cause variable mortgage rates to rise.
Swan quotes new Treasury analysis showing the cost of the 1.5% company tax hike on banks and other mortgage lenders is nearly $4 billion over four years – reaching $1.1 billion in 2016-17.
“Mr Abbott's new tax will send standard variable mortgage rates up by 10 basis points, while business rates could rise by as much as 25 basis points,” says Swan.
“The big banks have put Mr Abbott on notice that they will pass on every dollar of his company tax hike by jacking up interest rates on mortgages and small business loans - everyone with a home loan or business loan will pay for Mr Abbott's PPL scheme.”
Swan labelled the tax “unfair and unaffordable” and said it would be “paid for out of the pockets of hard-working families and small businesses across Australia”.
“It's downright unfair to rip away $2,000 from new families on modest incomes and jack up their mortgage repayments just to put $75,000 straight into the bank accounts of millionaires.
“Under Labor, a family on a $300,000 mortgage is saving around $5,500 a year in repayments compared to the high interest rates the Liberals saddled them with when they left office,” he said.
The paid parental leave scheme is one of the key policies of the Coalition’s election manifesto.
It will pay mothers six months of their normal salary up to $75,000. 
Treasury estimates of cost of 1.5% company tax hike on entities involved in general lending and deposit taking
<table border="1" cellspacing="0" cellpadding="0" style="width: 470px;"><tbody>
<tr>
<td valign="top">
2013-14
</td>
<td valign="top">
2014-15
</td>
<td valign="top">
2015-16
</td>
<td valign="top">
2016-17
</td>
<td valign="top">
Total
</td>
</tr>
<tr>
<td valign="top">
$850m
</td>
<td valign="top">
$970m
</td>
<td valign="top">
$1030m
</td>
<td valign="top">
$1110m
</td>
<td valign="top">
3960
</td>
</tr>
</tbody></table>
</body></html>

lschlesinger-FZcF9M3vE6

Coalition’s paid parental leave tax to push up mortgage rates: Wayne Swan

<html><body>
The percentage of home owners a month or more behind on mortgage repayments lifted from 1.44% in December to 1.66% at the end of March, according to Moody’s Investors Services.
This was marginally above the 1.59% of borrowers 30 days or more behind in mortgage repayments in March 2012.
The increase was consistent across all mortgage providers, says Moody's.
The arrears rate for the major banks rose to 1.39% in March from 1.16% in December, while for the regional banks, it rose to 1.87% from 1.65%, and for non-authorized deposit-taking institutions (ADIs), it rose to 3.46% from 3.24%.
Despite the increase, Australian mortgage arrears rates are very low by international standards.
The US 30-plus days mortgage arrears rate was 6.21% in April, according to the First Look report prepared by Lender Processing Services.
The UK arrears rate was 2.5% in April, according to the Council of Mortgage Lenders.
Moody's  attributed the rise in the Australian mortgage arrears rate to seasonal factors, that is the fallout from higher discretional spending over the Christmas and New Year holiday period.
However, the increase in the arrears rate also lifted despite a cut in interest rates.
In December the RBA cut the cash rate by 25 basis points to 3% with most of this passed on to borrowers.
Moody’s expect the arrears rate to decrease in the second half of the year.
Borrowers will also be assisted by the May 25 basis point rate cut with most lenders passing this on in full.
Arrears rates improved among borrowers with lower credit ratings.
The low-doc arrears rate fell from a record high of 6.24% in January to 5.83% in March.
"Borrowers in low-doc deals provide little or, in the case of no-doc loans, no proof of income. Moody's considers that the higher delinquency rate of these loans can be explained by the cash flow volatility of the borrowers, who are typically self-employed," says Moody's.
"After excluding 100% low-doc deals, the prime 30-days plus arrears rate would have been much lower at 1.60% in March."
The non-conforming 30-days plus arrears rate rose to 7.85% in March from 7.39% in December, and was 85 basis points lower than March 2012 when it was 8.70%.
Moody’s figures are compiled based on the performance of securitised loans, that is loans packaged into residential mortgage-backed securities (RMBS) and sold to investors.
The worst performing 2004 vintage incurring 36 basis points of losses to date.
"To date, lenders mortgage insurance has covered the majority of these losses, with any residual covered by excess spread or by the lender," says Moody's.
</body></html>

Small rise in home mortgage arrears rate in March blamed on Christmas holiday spending

<html><body>
Two out of every five (40%) home loan enquiries to mortgage brokers Loan Market are now for a fixed-rate home loan product.
This follows the RBA cutting the cash rate to 2.75% on May 7 and lenders responding with fixed-rate cuts to interest rates below 5% including <a target="_blank" href="/news">Aussie Home Loans</a>, <a target="_blank" href="/news">RAMS</a>, <a target="_blank" href="/news">Westpac, St.George, Bank of Melbourne and BankSA</a>.
Loan Market spokesperson Paul Smith says that since the RBA rate cut, 40% of home owners have been looking into fixing their interest rate, which is the highest proportion since the start of 2013.

“There’s been a roller coaster of speculation when we’ll hit the bottom of the interest rate cycle and the latest RBA rate cut has caused lenders to drop their fixed rates even further as they expect the cash rate to drop again,” says Smith.

Smith says one of the interesting areas of movement in the past two weeks has been lenders moving the pricing of their three-year fixed rates more than their two-year rates.
Three-year fixed rate terms are the most popular followed by five-year fixed rate terms, according to mortgage comparison website, <a target="_blank" href="https://www.propertyobserver.com.au/news/monday-feb-25-feature-the-fix-is-on-for-bank-mortgage-rates-should-you-take-the-deal/2013022159504">Homeloanfinder.com.au</a>
“As lenders speculate where variable rates will bottom out, they’re going to find ways to attract and retain customers – fixed rate products are so competitive right now for this reason,” says Smith.

He says it is important for a borrower to consider the longer term implications of signing up for a fixed or variable rate and not to make a decision based on the interest rate alone.

“Fixed rates continue to be priced below variable rates and have been so for nearly 12 months now. It’s a trend that’s against the historical comparison of fixed and variable rates, which further adds to the unique situation interest rates are presently in.”
These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison websites<a target="_blank" rel="nofollow" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" rel="nofollow" href="https://mozo.com.au/">Mozo.com.au</a>,  <a target="_blank" rel="nofollow" href="https://www.infochoice.com.au/">infochoice.com.au</a> and <a rel="nofollow" href="https://www.homeloanfinder.com.au/">homeloanfinder.com.au</a> as of March 4:
Where the headline rate is the same, the lender with the lowest comparison rate gets preference.
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="127" valign="top">
Provider
</td>
<td width="129" valign="top">
Loan name
</td>
<td width="98" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="127" valign="top">
State Custodians
</td>
<td width="129" valign="top">
State Custodians Peak Performance Offset Home Loan
</td>
<td width="98" valign="top">
4.74%
</td>
<td width="116" valign="top">
5.11%
</td>
</tr>
<tr>
<td width="127" valign="top">
Loans.com.au
</td>
<td width="129" valign="top">
Blackboard special – purchases only
</td>
<td width="98" valign="top">
4.75%
</td>
<td width="116" valign="top">
4.77%
</td>
</tr>
<tr>
<td width="127" valign="top">
UBank
</td>
<td width="129" valign="top">
UHomeloan – refinance only
</td>
<td width="98" valign="top">
4.87%
</td>
<td width="116" valign="top">
4.87%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Greater Building Society
</td>
<td width="123" valign="top">
Ultimate Home Loan Package
</td>
<td width="95" valign="top">
4.74%
</td>
<td width="114" valign="top">
5.51%
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank
</td>
<td width="123" valign="top">
UHomeloan – refinance only
</td>
<td width="95" valign="top">
4.83%
</td>
<td width="114" valign="top">
5.12%
</td>
</tr>
<tr>
<td width="137" valign="top">
iMortgage.com.au
</td>
<td width="123" valign="top">
iMortgage Fusion 75
 
</td>
<td width="95" valign="top">
4.84%
</td>
<td width="114" valign="top">
5.08%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
iMortgage.com.au
</td>
<td width="133" valign="top">
iMortgage Fusion 75
 
</td>
<td width="97" valign="top">
4.94%
</td>
<td width="108" valign="top">
5.16%
</td>
</tr>
<tr>
<td width="133" valign="top">
Loans.com.au
</td>
<td width="133" valign="top">
Dream Loan Express Fixed
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
4.93%
</td>
</tr>
<tr>
<td width="133" valign="top">
Aussie
</td>
<td width="133" valign="top">
Aussie Select Basic Fixed Rate
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
5.22%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
</body></html>

Cheapest fixed and variable offerings: mortgage brokers record spike in fixed-rate home loan enquiries

<html><body>
Mortgage lender RAMS has cut its one-year fixed home loan rate by four basis points to 4.95% p.a. and its three-year fixed home loan rate by 10 basis points from 5.09% to a low 4.99% p.a.
The new rates take effect from tomorrow (May 28).
It follows less than two weeks since RAMS <a href="/news">last cut its fixed rates</a> following the RBA May cash rate cut, with its two-year fixed home loan also falling to 4.99%.
“These interest rate cuts to our fixed home loan rate further demonstrates our commitment at RAMS to bringing Australians a better deal. RAMS continues to offer some of the most competitive and attractive fixed home loan rates on the market to help everyday Australians into homes," said RAMS chief executive Melos Sulicich.
“Fixing your interest rate could be a smart option allowing customers to lock in certainty of monthly repayments. Another option to consider is splitting your home loan between fixed and variable interest rates to make the best of both worlds,” he said.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="106" valign="top"></td>
<td width="106" colspan="2" valign="top">One year</td>
<td width="106" colspan="2" valign="top">Two year</td>
<td width="106" colspan="2" valign="top">Three year</td>
<td width="106" colspan="2" valign="top">Four year</td>
<td width="106" valign="top">Five year</td>
</tr>
<tr>
<td width="106" valign="top">
New Rate 
</td>
<td width="106" colspan="2" valign="top">
4.95% 
</td>
<td width="106" colspan="2" valign="top">
4.99%
</td>
<td width="106" colspan="2" valign="top">
4.99% 
</td>
<td width="106" colspan="2" valign="top">
5.39%
</td>
<td width="106" valign="top">
5.45%
</td>
</tr>
<tr>
<td width="106" valign="top">
Comparison Rate* 
</td>
<td width="106" colspan="2" valign="top">
6.07% 
</td>
<td width="106" colspan="2" valign="top">
5.98%
</td>
<td width="106" colspan="2" valign="top">
5.91% 
</td>
<td width="106" colspan="2" valign="top">
5.98%
</td>
<td width="106" valign="top">
5.97%
</td>
</tr>
</tbody></table>
Source: RAMS
</body></html>

RAMS cuts three-year fixed-rates to 4.99%

<html><body>
Westpac chief economist Bill Evans and AMP Capital chief economist Shane Oliver are the only two economists out of 21 surveyed by Bloomberg last week who expect a rate cut on June 4.
The other 19 economists surveyed by Bloomberg expect the RBA to leave the cash rate unchanged at 2.75%.
Bill Evans was the first economist to tip the RBA to begin its easing cycle in November 2011 and was also the first to forecast that the cash rate would fall to 2.75%, doing so <a target="_blank" href="https://www.propertyobserver.com.au/news/rba-to-cut-rates-by-25-basis-points-next-week-with-three-more-to-come-taking-cash-rate-to-reach-275-by-year-end-westpac/2012053154924">back in May last year.</a>
He expects the cash rate to bottom out at 2% sometime in the March quarter of next year.
Another economist tipping a rate cut in June – but not included in the latest Bloomberg survey - is Macquarie Group chief economist Richard Gibbs, who said so at a recent Mortgage Choice state conference in WA.
Looking ahead, the Commonwealth, NAB and ANZ all expect one more rate cut this year to take the cash rate to 2.5%.
</body></html>

All economists – bar Westpac’s Bill Evans and AMP’s Shane Oliver - favour RBA cash rate hold in June: Bloomberg survey

<html><body>
The proportion of Australian taxpayers that have become landlords has more than doubled since negative gearing was re-introduced  in September 1987 with a surge in those who claimed losses on their investments from 1999 onwards, according to analysis of ATO figures by MacroBusiness.
The negative gearing tax break for property investing was briefly abolished between 1985 and 1987 by the Hawke government, before being hastily reintroduced.
"Australia has morphed into a nation of landlords. In 1989-90, 696,000 taxpayers – 7.2% of the total – reported net rental income to the Australian Taxation Office (ATO). But in 2010-11, 1,811,000 did – 14.2% of total taxpayers," writes MacroBusiness's Leith van Onselen.
The surge in property investing from 1999 coincided with the ability of investors to minimise their tax bills via negative gearing, combined with easier access to credit – more lenders, a diversity of lending products, growth of mortgage broking - and the halving of Capital Gains Tax (CGT) in 1999 by the Howard government.
Recently, both the Coalition and the incumbent Labor government said they had <a target="_blank" href="/news">no plans to remove negative gearing</a>.
The graph below documents the rise in the proportion of taxpayers who are landlords (blue line) since 1979, with a steep rise occurring from around 1989 onwards.
The red line shows the proportion of landlords who negatively gear their investments has risen from around 6% in 1999 to in excess of 9% in 2011.  
<img height="280" width="470" src="/images/stories/2013/macrobusiness_chart_1.jpg" alt="macrobusiness_chart_1">
The recently published 2010-2011 <a href="https://www.propertyobserver.com.au/landlords/two-thirds-of-property-investments-negatively-geared-ato-figures/2013043060891">ATO annual report</a> revealed that around two-thirds of 1,811,174 property investors - 1,213,597 taxpayers – claimed losses on their investment properties for the 2010-11 tax year up from 1,110,290 who claimed losses in the 2009-10 tax year.
The average loss recorded for negatively-geared property investors was $10,947 in 2010-11, up from $9,132 in 2009-10.
The highest proportion of tax payers claiming rental deductions are those earning between $37,000 and $80,000 per year, making up more than a third of all negatively-geared property investors.
<div title="Page 12" class="page">
<div class="layoutArea">
<div class="column"></div>
</div>
</div>
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Landlord numbers have doubled since negative gearing reintroduced in 1987

<html><body>
A pilot program to assist senior Australians to downsize their home without affecting the age pension will be welcomed by some retirees but the vast majority will be disappointed by the limitations of the scheme, as they want to stay where they are rather than sell and move away.
From July 1 2014, those claiming the age pension and who have lived in their current home for at least 25 years, can downsize and invest the additional funds, capped at $200000, in a special account. The funds invested and any interest earned will be exempt from asset and income testing for up to 10 years.
Although we welcome any initiative that is intended to improve choice for senior Australians seeking to access their housing wealth in order to fund their retirement, the appeal of the Government’s Housing Help for Older Australians’ pilot is likely to be somewhat limited as it does not address the overwhelming desire of retirees to remain in their homes.
The Australian Bureau of Statistics reports that 75% of Australians aged 65-74 and 82% of those aged 75 and over own their home outright. According to the Australian Institute of Health &amp; Welfare, outright homeowners are more likely to intend to age in place and exhibit the highest levels of satisfaction with their housing.
The key challenge for retirees seeking to improve their standard of living is to release some of their home equity wealth without selling their home and then having to move away from established and supportive social networks.
Domacom has emerged as the first provider of long awaited "Second Generation" Equity Release products, which will improve the range of equity release strategies available to the so-called, Asset Rich but Cash Poor retirees who have previously had little choice beyond bank-funded Reverse Mortgages. Compounding the problem, the number of Reverse Mortgage providers has fallen dramatically since the Global Financial Crisis. 
The MoneySmart website hosted by the Australian Securities and Investment Commission suggests that using home equity may be suitable if “you need a lump sum for home maintenance or renovations so you can stay in your home” but warns that “using your home equity is a big step”. ASIC also advises consumers to work out whether the benefits outweigh the risks and always seek financial advice before making a decision.  
Domacom has taken an important decision introduce a mandatory requirement that clients obtain both financial and legal advice, in order to increase consumer protection.
Given that home ownership represents about 70% of Australians’ personal wealth and that the number of Australians aged 65 and over is predicted to double by 2031, home equity release options are likely to stay on the agenda for government policy developers regardless of the 2013 election outcome.
Arthur Naoumidis is chief executive of <a target="_blank" href="https://www.domacom.com.au/">Domacom</a>
</body></html>

anaoumidis-yKSh9uwLbM

Seniors downsizing pilot program to be welcomed by some but not all: Arthur Naoumidis

<html><body>
The Reserve Bank has noted strengthening conditions in the housing market, but it remains worried about demand for home loans, says Westpac chief economist Bill Evans.
Evans said the primary reason for the rate cut in May was a “surprise low print for inflation in the March quarter” as well as a “downbeat assessment of business conditions”.
But, he says the RBA board also “takes considerable notice of credit growth” qualifying its statement that housing loan approvals are improving with the comment that “credit growth remains subdued to date” along modest growth in business debt.
“This failure of credit growth to support optimism around the housing market is a very important observation,” says Evans.
“It is repeated in the final paragraph of the ‘Considerations for Monetary Policy’ section and provides an important condition which the Bank is likely to require before it declares victory in its objective of boosting the housing market.
“We have seen other comments from Bank officials pointing out that any sustained boost to housing activity and house prices would need to be supported by a marked improvement in credit growth.
“Of course to date this improvement has been missing mainly because existing borrowers continue to pay down debt,” says Evans.
Evans is sticking with his expectation, post the May rate cut, that the cash rate will fall to 2%, as well as a June rate cut, but with some degree of uncertainty on the timing.
“We were also sufficiently encouraged, particularly around the Governor's statement that implied there was more scope to ease policy, to expect a follow-up move in June
“Accordingly, while we are confident about our medium term view that the cash rate will eventually reach 2%, the choice of a June or later date for the next move is highly subjective.
“We are comfortable to reserve any decision to push back that call until we see Australian dollar and capital expenditure evidence over the next week," he says.
The government’s capital expenditure plans are to be released on May 30, which Evans says are “so important for the bank's overall plan to rebalance investment towards non-mining activities".
Evans is tipping a cash rate of 2% by the March quarter of 2014.
ANZ economist Justin Fabo has a 25 basis point rate cut “pencilled in” for later this year.
“Combined with our subdued outlook for overall business investment, however, and an expectation that the currency is likely to remain elevated for a while yet, our view is that the cash rate is still more likely than not to be lowered a little further,” he says.
CommSec economist Savanth Sebastian says the RBA has “made it clear that it is not done cutting rates” though it is unlikely that multiple rate cuts are on the cards.
“Certainly with inflation well contained and expected to be within the target 2% to 3%band over the next couple of years policymakers can rest easy while maintaining an easing bias,” he said.
</body></html>

Subdued home loan growth a worry for RBA with 2% cash rate still on the cards: Westpac’s Bill Evans

<html><body>
The Coalition currently has no plans to remove negative gearing tax breaks used by a third of Australian property investors if it wins power in September.
Even if removing negative gearing were recommended as part of a broader White Paper tax review, it would only seek a mandate to change tax rules as part of a second term election campaign.
A story on thewest.com.au claiming shadow treasurer Joe Hockey would review negative gearing tax breaks for property investors as part of an incoming Coalition government tax review, has been rubbished by his spokesperson, Tony Ritchie, who is demanding a retraction.
“Tony Abbott was clear last Thursday night, saying if a Coalition Government is elected it 'will consult with the community to produce a comprehensive white paper on tax reform'.
“'We’ll finish the job that the Henry review started and this government squibbed. We want taxes that are lower, simpler and fairer and will take proposals for further tax reform to the following election.'
“Mr Hockey nor the Coalition has identified any particular tax that will be reviewed.
“If the White Paper makes recommendations the Australian public will be asked to give a second term Coalition a mandate before any taxation reform is undertaken.
“There could be no fairer or transparent system,” said Ritchie.
At the same time incumbent federal treasurer Wayne Swan has ruled out making any changes to negative gearing telling reporters in Adelaide today the government had “ruled out any change to the existing arrangements" in its response to the Henry report.
The recently published <a target="_blank" href="https://www.propertyobserver.com.au/landlords/two-thirds-of-property-investments-negatively-geared-ato-figures/2013043060891">ATO annual report</a> revealed that around two-thirds of Australia’s 1,811,174 property investors - 1,213,597 taxpayers –  using negative gearing provisions to claim losses on their investment properties for the 2010-11 tax year up from 1,110,290 who claimed losses in the 2009-10 tax year.
The average loss recorded for negatively-geared property investors was $10,947 in 2010-11, up from $9,132 in 2009-10.
<a href="/news">Investment adviser Scott Pape</a> stirred up a hornet's nest of responses from readers when he suggested that the government didn't have the "ticker" to remove negative gearing tax breaks.
Now he can add a likely Coalition government to his list.
</body></html>

No plans for Labor or Coalition governments to abolish negative gearing 

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Westpac will offer new borrowers a one-year fixed-rate home loan of 4.79% from today, among the lowest home loan rates available in Australia.
Its state-based subsidiary banks St.George, Bank of Melbourne and BankSA have also cut their fixed-rate home loans below 5%.
Bank of Melbourne today announced cuts to its 1, 3, 4 and 5-year fixed rate home loans, including a three-year fixed rate of 4.95% per annum for packaged home loan customers.
BankSA has cut fixed home loan rates for one, three, four and five-year terms, with the three-year fixed-rate being cut by 34 basis points to 4.95% per annum.
St.George has announced that it will cut its fixed home loan rate for 1, 3, 4 and 5 years, effective May 21 for a limited time.
St.George’s new fixed rates under the Advantage package are 4.99% p.a. for 1 year, 4.95%p.a. for 3 years and 5.49% p.a. for 4 and 5 years. St.George’s 2 year fixed rate remains at4.99% p.a.
Westpac briefly offered a two year fixed-rate home loan at 4.99% in February and March.
The new 4.79% Westpac rate is available for customers who take out a packaged home loan and borrow in excess of $150,000 and includes a 65 basis point discount off its standard advertised one year fixed-rate home loan.
The decision to offer a 4.79% fixed-rate follows the release of interim results this month, which showed nearly a quarter (24%) of Westpac customers fixed their home loan rate in the six months to March 31.
This was up from just 13% in the previous six month period.
Westpac also offers a reduction of 100 basis points off its current headline standard variable rate of 6.26% on mortgages over $500,000, 90 basis points on mortgages between $250,000 and $500,000 and a discount of 70 basis points on loans over $150,000.
Figures from RateCity.com.au have the proportion of fixed-rate home loans at 18.45%, the highest in five years. 
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