<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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

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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.
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Lowest home loan rate offerings: Fixed and variable

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

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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>
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kenraiss-JsVyb3YKka

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

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

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

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

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

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

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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.
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