<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;

Joel Robinson

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

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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>
Interest rate cuts in May and June have failed to translate into a rise in mortgage lending, according to private credit data released by the RBA today, with mortgage growth still at record lows.
Housing credit increased by 0.3% over June, following an increase of 0.3% over May – despite 75 basis points being cut from the cash rate over the two months (50 basis points in May and 25 basis points in June) taking the cash rate from 4.25% to 3.5%.
Loans to owner occupiers grew by just 0.2% over June - the smallest increase in lending to this sector for RBA records going back to 1990 while investor mortgage growth was higher at 0.5% for the month.
Over the year to June, housing credit rose by 5.1% - the lowest annualised rate of growth dating back to 1977.
Total credit provided to the private sector by financial intermediaries rose by 0.3% over June 2012, after rising by 0.5% over May. Over the year to June, total credit rose by 4.4%.
The June reading was below the median of 0.4% growth forecast by economists polled by Bloomberg last week.
Other personal credit decreased by 0.2% over June, after increasing by 0.1% over May. Over the year to June, other personal credit decreased by 1.5%.
Business credit increased by 0.5% over June, after growing by 0.8% over May. Over the year to June, business credit increased by 4.4%.
</body></html>

lschlesinger-FZcF9M3vE6

No interest rate bounce as mortgage lending up just 0.3% in June

<html><body>
Property Observer has scoured mortgage comparison websites to determine the lowest variable rate home loan and one- and three-year fixed home loans currently available.
Lowest variable rate offerings:
<table cellspacing="0" cellpadding="0" border="1"><tbody>
<tr>
<td width="152" valign="top">
Provider 
</td>
<td width="158" valign="top">
Loan name
</td>
<td width="123" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate**
</td>
</tr>
<tr>
<td width="152" valign="top">
UBank
</td>
<td width="158" valign="top">
UHomeloan Refinance
</td>
<td width="123" valign="top">
5.62%
</td>
<td width="132" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="152" valign="top">
Nationwide Mortgage
</td>
<td width="158" valign="top">
True Saver Home Loan
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
5.65%
</td>
</tr>
<tr>
<td width="152" valign="top">
Loans.com.au
</td>
<td width="158" valign="top">
Dream Catcher
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.00%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table cellspacing="0" cellpadding="0" border="1"><tbody>
<tr>
<td width="152" valign="top">
Provider
</td>
<td width="157" valign="top">
Loan name
</td>
<td width="124" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="152" valign="top">
UBank
</td>
<td width="157" valign="top">
UHomeloan Refinance
</td>
<td width="124" valign="top">
5.58%
</td>
<td width="132" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Melbourne*
</td>
<td width="157" valign="top">
Fixed loan (Advantage Package)
</td>
<td width="124" valign="top">
5.59%
</td>
<td width="132" valign="top">
6.83%
</td>
</tr>
<tr>
<td width="152" valign="top">
CUA
</td>
<td width="157" valign="top">
Fixed rate home loan
</td>
<td width="124" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.25%
</td>
</tr>
<tr>
<td width="152" valign="top">
Illawarra Credit Union
</td>
<td width="157" valign="top">
Fixed rate loan
</td>
<td width="124" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.01%
</td>
</tr>
</tbody></table>
* Rate also available through other Westpac bank brands – BankSA, St.George
Lowest three-year fixed-rate offerings
<table cellspacing="0" cellpadding="0" border="1"><tbody>
<tr>
<td width="152" valign="top">
Provider 
</td>
<td width="158" valign="top">
Loan name
</td>
<td width="132" valign="top">
Rate
</td>
<td width="123" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Queensland
</td>
<td width="158" valign="top">
Fixed loan
</td>
<td width="132" valign="top">
5.55%
</td>
<td width="123" valign="top">
6.67%
</td>
</tr>
<tr>
<td width="152" valign="top">
RAMS
</td>
<td width="158" valign="top">
RAMS Fixed rate
</td>
<td width="132" valign="top">
5.59%
</td>
<td width="123" valign="top">
6.80%
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Melbourne*
</td>
<td width="158" valign="top">
Fixed loan (Advantage Package)
</td>
<td width="132" valign="top">
5.59%
</td>
<td width="123" valign="top">
6.49%
</td>
</tr>
</tbody></table>
*Rate also available through other Westpac bank brands – BankSA, St.George
Those readers thinking about refinancing their home loan should sign up for Property Observer’s free webinar: <a href="https://propertyobserver.us2.list-manage1.com/track/click?u=24bd0766a834290948593f5aa&amp;id=73e60d1a88&amp;e=add64da266" target="_blank">Refinancing and the </a><a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=9814caeb06&amp;e=add64da266" target="_blank">interest rates riddle</a>, taking place today (31 July) a 12:30pm AEST.
 **A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
***The following results are based on advertised mortgage rates listed by <a href="https://www.ratecity.com.au">ratecity.com.au</a>, <a href="https://www.infochoice.com.au">Mozo.com.au</a> and <a href="https://www.infochoice.com.au">infochoice.com.au</a> as of July 30.
</body></html>

Lowest home loan rate offerings: Fixed and variable

<html><body>
The Reserve Bank could cut the cash rate another four times in the current rate-cutting cycle, according to Macquarie Group senior economist Brian Redican.
Redican made this observation while speaking at the Real Estate Institute of Victoria’s (REIV) Commercial &amp; Industrial Economic Forecast Luncheon on Friday.
They followed a question from luncheon host, Peter Switzer, who asked if he and BIS Shrapnel chief economist Frank Gelber (also speaking at the luncheon) agreed with former Gillard government economic adviser Stephen Koukoulas and soon to be Business Spectator commentator that four more rate cuts are likely.
Koukoulas is tipping a cash rate cut of 2.75% by year end and one more in the first quarter of 2013, taking the cash rate to 2.5%.
Redican says while the mining boom is driving the economy other parts are struggling.
“Housing construction could rise a little bit in 2013, but it’s not going to be a major driver of growth.
“And the other thing we have seen is a lot of white-collar unemployment… and the reason that’s important is that they are your potential investors in the property market."
As a result, Redican says you won’t get the pick-up in growth, meaning the RBA will have keep doing what it has done over the past 12 months is “stepping in and very begrudgingly and reluctantly” cutting rates, otherwise the economy will take another turn down.
But Gelber disagreed, and expects just one more interest rate cut in the cycle – and not in August – unless things turn sour.
“Interest rates take awhile to work their magic on the housing market and the economy and we think the RBA will sit back and wait."
However, if things do turn “sour” Gelber says the RBA has the fire power to act.
Redican added that he believed we may be entering into a world where monetary policy is less effective, because the structure is so different.
In their presentations both Gelber and Redican highlighted that consumers were continuing to save and that interest rate cuts were being used to pay off more of the mortgage rather than spend the money.
“The golden age of retailing has come and gone,” said Gelber.
Those readers thinking about refinancing their home loan should sign up for Property Observer’s free webinar: <a href="https://propertyobserver.us2.list-manage1.com/track/click?u=24bd0766a834290948593f5aa&amp;id=73e60d1a88&amp;e=add64da266" target="_blank">Refinancing and the </a><a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=9814caeb06&amp;e=add64da266" target="_blank">interest rates riddle</a>, taking place on Tuesday, 31 July a 12:30pm AEST.
</body></html>

Four more cash rate cuts still possible in current cycle: Macquarie Group's Brian Redican

<html><body>
Christmas comes but once a year, but so does a tax return, and this can also produce plenty of winter bounty, especially if tax minimisation rules are explored to their fullest extent. 
Reducing tax is in everyone’s interest, and there is no harm in treating it like a game of skill given the complex guidelines set by the ATO. However, like any game there will always be those who try and bend the rules, and the ATO will never tolerate cheats and nor should it. 
The complex nature of tax legislation and interacting with the ATO is often blamed as the root cause of problems encountered by people who play outside the rulebook. This is nonsense, and may I add by way of warning, where tax is the dominant purpose of any action then this is tax avoidance and the ATO would ignore any potential tax benefits and tax accordingly. 
As with any game of skill its knowledge and experience that wins the day, and as with other team sports it can pay to bring on other more experienced substitutes to improve your chances of winning in the shape and form of a tax expert. 
At this time of year there are many articles identifying tax tips, but these do not normally identify some of the smarter, less known strategies. 
Chan &amp; Naylor has compiled a non-exhaustive “smart list” of ATO-approved winning formulas not always considered in strategies relating to property investment tax reduction. 
<ul>
<li>You can claim interest expenses on any borrowing used to purchase investments. The purpose of the loan determines deductibility not what asset was used by the bank as security. For example if the home is used as security to buy an investment then interest is deductible. </li>
</ul>
<ul>
<li>The proper use of trusts (such as Chan &amp; Naylor’s Property Investor Trust ®) can legally allow negative gearing at marginal tax rates while allowing additional benefits of estate planning and asset protection. </li>
</ul>
<ul>
<li>Depreciation on the building and fixtures and fittings is an easy one, but many investors do not claim depreciation or use an inappropriate schedule that underestimates the depreciation claim. The rule of thumb here is not to underestimate what can be depreciated. Even old properties can have a reasonable deduction so use a specialist quantity surveyor to prepare the schedule. </li>
</ul>
<ul>
<li>When conducting renovations a quantity surveyor should prepare a scrapping or demolition schedule to place a value on all items being thrown away or demolished for an immediate tax deduction and on completion of the renovation or construction a new depreciation schedule will be needed. </li>
</ul>
<ul>
<li>All costs for a holiday or personal use property (other than main residence) including interest expense, repairs and maintenance can be added to original costs when calculating capital gains in the event of a sale.</li>
</ul>
<ul>
<li>When selling an investment property you should include all possible associated costs such as conveyance to buy and sell, stamp duty (different in ACT where costs are immediately deductible), selling agent’s fees, buyer agent’s fees, costs associated with marketing the property (for example touch-up paint, temporary furniture etc.) and the balance of borrowing costs (which are amortised over five years). </li>
</ul>
<ul>
<li>If refinancing you can expense any balance of the original borrowing costs or exit fees. </li>
</ul>
<ul>
<li>Land tax costs are deductible. </li>
</ul>
<ul>
<li>Interest expense on borrowings to purchase land is deductible if the intention is to build an investment property on the land, even if construction has not yet commenced. </li>
</ul>
<ul>
<li>Remember to consider the timing of a sale. Tax is triggered at date of contract not settlement. </li>
</ul>
<ul>
<li>If an investment property is sold after 12 months then a 50% capital gains tax discount applies if the property was originally purchased with the intention to keep. </li>
</ul>
<ul>
<li>If an investment property is sold before 12 months then the gains are still a capital gains (but without the 50% discount), which can be used to offset any capital losses. </li>
</ul>
If you have sold a property used to operate your business you may be eligible for the 50% small businesses exemption (active asset) on top of the 50% CGT general discount. Yes, two 50% deductions.
Ken Raiss is a certified accountant and director of <a target="_self" href="https://www.chan-naylor.com.au/" title="Chan &amp; Naylor ">Chan &amp; Naylor</a> national accounting firm. Chan &amp; Naylor offers a free five-minute question-and-answer session on its website under the<a target="_blank" href="https://www.chan-naylor.com.au/ask-the-experts/"> "Ask the Experts" section.</a>
</body></html>

kenraiss-JsVyb3YKka

12 tips for property investors to reduce their tax bill: Ken Raiss

<html><body>
The Reserve Bank is likely to wait until November to cut interest rates again, according to the Commonwealth Bank’s chief economist Michael Blythe, following today's benign June quarter inflation rate reading.
The CBA had previously forecast a 25 basis point rate cut in August.
Blythe described the CPI June quarter reading of 0.5% as a “touch below market expectations” with the underlying CPI print (0.6%) in line with the market and the Commonwealth Bank’s own forecasts.
“But whatever way you cut up today’s data the bottom line is that underlying inflation at mid-year was travelling at around 2%pa, the bottom end of the RBA’s target band.
ANZ prepared this graph showing how underlying inflation has tracked within the RBA’s targeted inflation band (2% to 3% since 2011):
<img alt="underlying_inflation" src="/images/stories/2012/underlying_inflation.jpg" height="279" width="399">
Blythe says the inflation reading leaves scope for the RBA to cut interest rates “if necessary”.
“That said, there is a pretty clear theme in recent RBA commentary."
“That theme is a lot of policy stimulus that has been applied over the past six months or so and now is the time to see what impact that stimulus is having."
“RBA Governor Stevens, for example, noted in the Q&amp;A session following yesterday’s presentation at the Anika Foundation that “we think the setting’s about right for the circumstances we face”.
“As a result the 25bpt rate cut we had pencilled in for the August RBA board meeting looks unlikely."
“We have pushed that cut back to November. The projected cut reflects the downside risks to the economic outlook that remains."
“Much will depend on how the European story plays out. But lower rates may also prove necessary in an economy adjusting to the end of a terms?of?trade boom and downward correction to export prices,” says Blythe.
Today, on the back of the inflation reading and Glenn Stevens' well-received speech on the economy and housing market, Aussie Home Loans chairman John Symond came out in agreement on the RBA Governor’s position on the state of the Australian housing market.
“Repayments are now at their lowest in years on the back of low interest rates, income growth and lower house prices and loans sizes,” says Symond.
“I particularly endorse the RBA’s optimism and agree that arrears have remained low or have even seen some decline in the last year, while house prices are now somewhere around their 2004 levels. The likelihood of the so-called ‘bubble’ bursting seems low, in my opinion."
“Now really is an opportune time for first home buyers to consider getting in to the market, especially with the chance of further rate drops in the coming months. Both variable and fixed rates look appealing, and with an increase of houses on the market combined with positive economic indicators, it provides a great environment  to invest in your own place rather than pay someone else’ s rent if you can afford it.”
Thinking about refinancing your home loan as economists change the interest rate forecasts?
Sign up for Property Observer’s free webinar: Refinancing and the interest rates riddle taking place on Tuesday 31 July a 12:30pm AEST.
</body></html>

RBA likely to wait until at November to cut rates again following low June quarter inflation reading: CBA’s Michael Blythe

<html><body>
RBA governor Glenn Stevens has suggested that Australian households are coping well with their mortgage repayments as part of his very well received “Lucky Country” speech delivered to the Anika Foundation Luncheon in Sydney yesterday.
Stevens says the amount of household income required to repay the median mortgage is at its lowest level in more than a decade, excluding the GFC blip.
In addition, a high proportion of households are ahead on their mortgage payments, while house repossessions have also fallen from their peaks in Australia’s two biggest housing markets, NSW and Victoria – with the national repossession rate standing at 0.15% compared to 2% in the US.
"Dwelling prices have already declined, relative to income, and it is in fact not obvious that they are particularly high compared with most countries. Housing ‘affordability’ has improved significantly; over 99% of bank-held mortgages are being serviced fully," he said.
Stevens presented this chart (below) to show that on average, households are spending about 22% of their disposable income to repay their home loan – the same amount they were paying in 2002.
<img src="/images/stories/2012/sp-gov-240712-graph7-small.gif" alt="sp-gov-240712-graph7-small" height="404" width="400">
The chart shows that housing affordability has been improving over the past two years – with Australian households coming under the most strain in 2008 when the percentage of household income to loan repayments peaked at above 30%.
The standard accepted definition of mortgage stress is that you spend 30% or more of disposable household income on mortgage repayments.
“As a result of lower house prices and therefore lower loan sizes, somewhat lower interest rates and a good deal of income growth, the repayment on a new loan on a median-priced house as a share of average income is now at its lowest for a decade (except for the "emergency" interest rate period in 2009),” Steven said.
“It is true that a low unemployment rate is a key factor helping here, but it is also true that the proportion of households that are ahead on their mortgage payments is also high – with some evidence pointing to over half – which would provide a buffer of some months for those households in the event a period of lower income was experienced.
"If we look at applications for possessions of dwellings, they have been running at about 0.15% of dwellings on an annualised basis. Such applications have actually declined since their peak in both NSW and Victoria, though they have risen over the past couple of years in WA and Queensland. In the United States the most comparable figure for repossessions – "foreclosures started" – peaked at over 2% of dwellings.
The conclusion to be drawn from this and other positive indicators (a banking system in good shape; the correct macroeconomic response to the GFC, demand from China rebounding strongly after the GFC among others) Steven said was that “ingredients” the RBA would look to as signalling an imminent housing crash seem, “if anything, less in evidence now than five years ago”.
Stevens said stress tests carried out over recent years showed that "even with substantial falls in dwelling prices, much higher unemployment and associated higher levels of defaults, key financial institutions remain well and truly solvent".
As a result of this upbeat assessment of the Australian economy and the resilience of the financial system highlighted in the speech, <a href="https://www.propertyobserver.com.au/economy/august-rate-cut-hopes-dim-further-following-upbeat-glenn-stevens-lucky-country-speech-commsec-anz/2012072455710">both Commsec and ANZ said the chances of rates being cut in August had dimmed even further</a>.
Commsec chief economist Craig James said that on the question of whether housing is over-valued, Stevens' arguments show that he isn’t convinced, pointing to Stevens' observation that " the housing market bubble, if that's what it is, seems to be taking quite a long time to pop".
James also highlighted that in terms of bank funding vulnerabilities, Stevens said there are grounds for optimism, while also showcasing a number of developments that have worked to strengthen the Australian economy.
James highlighted this statement from Stevens in relation to the strength of the economy:
“Some of the adjustments we have been seeing, as awkward as they might seem, are actually strengthening resilience topossible future shocks. Higher – more normal– rates of household saving, a more sober attitude towards debt, are-orientation of banks' funding, and a period of dwelling prices not moving much, come into this category.”
</body></html>

RBA’s Glenn Stevens pours cold water on mortgage stress fears with affordability at 10-year high

<html><body>
Economists appear to be coming to the conclusion that the Reserve Bank may leave the cash rate on hold at its next meeting on August 7.
Fifteen out of 25 economists polled by Bloomberg on July 20 – following the release of a more bullish July 3 monetary policy statement on July 19 – now expect the Reserve Bank to leave the cash rate unchanged at 3.5% in August.
This is up from 13 out of 24 economists who said the RBA would leave the cash rate unchanged when polled by Bloomberg on July 13.
Of the major banks, only the Commonwealth Bank is tipping the RBA to cut rates on August 7.
Noticeably, Westpac has pushed back its forecasting timetable of rate cuts by three months, with chief economist Bill Evans anticipating the next rate cut in October, having earlier forecast one in August.
Looking ahead to the end of the year, 12 out of 25 economists expect the cash rate to fall by 25 basis points to 3.25% with other forecasts ranging from 2.5% (Credit Suisse) to 3.5% (Barclays Capital).
In ANZ’s latest economics weekly wrap, ANZ’s head of Australian economics and property research, Ivan Colhoun, says the RBA Board’s July Minutes showed that the Bank saw growth momentum in the Australian economy to have been a little stronger than it had previously thought.
“This primarily reflected the surprisingly strong first quarter GDP data, which was released a day after its June policy meeting.
“The Minutes showed that the RBA felt that growth had slowed to around trend in the second quarter, while inflation pressures were said to remain contained."
“In light of a 'material' easing in monetary policy since late 2011, which has led to a lowering in lending rates to 50 to 75 basis points below their medium-term average, the RBA appears to want to see how the economy responds to this loosening in monetary conditions.
“Hence, the RBA appears likely to sit on the sidelines for at least the next couple of months, assuming that the situation in Europe doesn’t deteriorate markedly in the meantime," he says.
On Wednesday the second quarter CPI data (to June 2012) will be released by the ABS, and Colhoun says this will be “closely watched”.
“But we think even a low underlying inflation result, by itself, will probably not be enough to spur the RBA to lower the cash rate in August."
“That said, it would increase the probability of further rate cuts down the track, and we still consider that further modest easing of 50 basis points will be forthcoming by the end of the year,” he says.
</body></html>

Economists more confident of RBA keeping rates on hold in August: Bloomberg	

<html><body>
John Symond’s Aussie Home Loans has cut its one-, two- and three-year fixed rate home loans by 20 basis points.
The new fixed rate being offered by Aussie is 5.79%
“The rate cut comes after reductions in the variable home loan rate across the industry and a number of consecutive RBA rate moves since late 2011,” says Aussie.
Aussie operates primarily as a mortgage broker but also provides home loans under its own brand.
The Aussie fixed rate cuts follow credit union CUA and the Commonwealth Bank reducing their fixed rates recently.
The CUA is offering a one-year fixed-rate home loan at 5.65% and two- and three-year fixed-rate home loan at 5.73%.
Last week the Commonwealth Bank cut its one- and three-year fixed mortgages by 20 basis points to a rate of 5.79% per annum for both products.
</body></html>

Aussie cuts fixed rates to 5.79% following cuts by CUA and CBA

<html><body>
I want to begin by saying this: I do not house any hostility towards lenders. In fact, I’ve written many times in the past about how lenders can be your best friend when it comes to starting out fresh in your property investment career. Let’s be honest; if you’re like most new investors out there, you don’t have suitcases of cash just lying around, ready to buy real estate with, so lenders can absolutely be the “determining force” in your decision to get into property investment. If no one will lend you money, well, your pipe dreams can be quickly flushed.
All of that aside, lenders are simply a means to an end. Providing that you find a lender that offers the best rate and features relevant to you, they are all pretty much the same. For many years, lenders had, quite cunningly and cleverly, marketed themselves as more of an authority over you. They did this by using a certain kind of language when discussing and corresponding in paperwork the nature of their products. Basically, they made it seem like you were locked in forever to their mortgage products. One way they did this was to charge excessive and complicated “break fees” should you ever look to shop around and move to a different financier.
The industry watchdogs, and eventually government bodies, cottoned on to these tactics and established legislation to remove all of these break fees, effectively making it much easier to switch your mortgage to a better/cheaper product in the marketplace. So you know (and it goes without saying, you need to double-check this yourself should you actually be looking at breaking a mortgaging product), banks cannot charge their exit fees anymore, however you will always have to pay the government processing fees – usually a couple of hundred dollars only – to get out of a mortgage.
There was initial fear that as a result, lenders would recoup these losses by charging heavier entrance fees into new mortgage products; however this has not really happened as yet, at least to extremes. The beauty of the removal of break fees meant that the marketplace has become more competitive, and lenders now actually have to fight their competition to get a slice of your potential custom.
For any would-be switchers out there, my advice is to do up a spreadsheet and calculate all the costs to switch out from one product into a new one. If the savings in one year’s interest repayments at the new lender’s rate is greater than double the cost to switch, it is an exercise worth doing.
When approaching lenders as a property investor – even if it is your first property – you should always make clear mention of your growth potential and desire to hold a large portfolio. Although it won’t win you any brownie points in terms of qualification and verification for mortgage products, mentioning your growth plan to them will certainly make them earmark you on their computer systems! No jokes – I’ve seen lenders who literally input an asterisk against someone’s details, which is pretty much code for “keep an eye on this one; he could be a repeat customer!” I would encourage everyone to do this when buying their first property, even if you only intend on buying a home to occupy and never an investment property.
It is therefore important to remind a lender at times just how valuable you can be as a potential “repeat customer”. Having a great mortgage broker working for you can help with this – they are able to leverage – and effectively vouch for – your future portfolio growth expansion/potential and use this as a bargaining chip to negotiate better product offerings back to you, but I strongly believe that it is always important to have a direct and solid relationship with your lender(s).
All of this is especially important when considering the times we’re living in. Finance is edging further and further down, and interest rates could fall to all-time lows. Lenders know this. They understand how the cheaper rates in market will truly change the dynamic for everyone. In fact, I attribute the recent increase in lender marketing campaigns, which heavily promote “switch to us” themes in their tactics as a response to this trend. For example, UBank from NAB has released an online home loan product offering a variable rate of 5.62%, one of the cheapest currently on offer in the market. But the bank is very quick to point out the product is only available to new customers and switchers from other lenders. Existing customers cannot get access to this product.
So as the market – investors and owner-occupiers alike – respond to cheaper finance products hitting the market, consumer confidence may begin to return. This could mean that would-be buyers, who previously held the mantra “the entire global market is too unstable; now is the worst time to take a risk” change to a mindset of “the global market might not be so stable, but darn it, rates are probably not going to be this cheap again anytime soon, so I should give this a second look”.
I’d love to hear from the community about experiences in mortgage switching – was it easy? Were there in fact hidden costs (whether it is a government cost, lender cost, or other kind of cost)? And did the old and new lenders make the process easy or hard? Also, when leaving your lender, was there a last-dash attempt to keep your custom, or did it let you go easily?
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a> 
{module Have you changed lenders in the last six years?}
{module What do you intend to do given the current interest rate fluctuations?}
</body></html>

cmcevoy-Go82SmsJA9

Why mortgage holders should talk to their lenders and consider refinancing: Cameron McEvoy

<html><body>
ASIC has cancelled the credit licences of two Sydney mortgage broking firms and has permanently banned the director of one of them from engaging in credit activities.
Mortgage brokers require an ASIC credit licence or be licensed as a credit representative under an ASIC licence-holder to assist with arranging mortgages and other credit products.
ASIC permanently banned Almaza Souzie Boutros, of Merrylands in western Sydney, from engaging in credit activities after being convicted of a serious fraud offence. ASIC also cancelled the Australian credit licence issued to Option 1 Mortgage Pty Ltd (Option 1 Mortgage), of which Boutros is a director, on the grounds that Option 1 is in liquidation. Boutros' conduct as a director of Option 1 Mortgage resulted in a conviction for fraud in April 2012.
Fairfield Local Court ordered her to pay compensation and placed her on a good behaviour bond for a period of 18 months. Boutros and Option 1 Mortgage have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.
ASIC also cancelled the Australian credit licence of Dean Mooney Pty Ltd, a Sydney-based finance broking firm, after it was found it failed to hold membership of an approved external dispute resolution scheme (EDR).
Under the National Consumer Credit Protection Act 2009, credit licensees are required to be members of an ASIC-approved EDR scheme.
ASIC can suspend or cancel an Australian Credit Licence if the licensee is not a member of an approved EDR scheme.  Dean Mooney Pty Ltd was granted a licence to engage in credit activities, including the provision of mortgages, on January 17 last year. On October 12, 2011, Dean Mooney Pty Ltd's EDR membership was cancelled by the Financial Ombudsman Service Limited (FOS), one of the two EDR schemes approved by ASIC.
The membership was cancelled by FOS due to non-payment of membership fees.
Dean Mooney Pty Ltd did not hold membership with the Credit Ombudsman Service Limited, the only other ASIC-approved EDR scheme. Commenting on the decision, ASIC commissioner Peter Kell said, “EDR schemes provide consumers with alternatives to legal proceedings in respect of resolving complaints with their credit service providers, therefore, when a credit licensee fails to maintain membership in such a scheme, ASIC will act to protect consumers by cancelling the entity’s credit licence”. Dean Mooney Pty Ltd has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. The Australian credit licence was cancelled with the effective date of July 2, 2012.
</body></html>

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News