<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>
As the end of financial year fast approaches, there are a number of tax and other benefits that can be associated with owning an investment property. 
1. Get the facts
Regular and concise information is imperative to the smooth management of your investment, particularly during the leasing process. A good property manager should provide you with detailed reports about the performance of your property. To that end, annual income and expenditure statements should be provided along with monthly rental  statements.
 
2. Prepay expenses
In most cases for investors, the best way for to boost your property investment refund is to pay for any expenses before June 30 – that way you can claim these expenses as a tax deduction in the 2012 financial year. Typical expenses include rates, body corporate fees, borrowing costs, property management costs and insurance. If you have a high income you may even consider bringing forward required spending such as repairs. This can help you to reduce your overall tax bill. 
3. Know your personal tax position
Before you lodge any expenses it’s important that you consider your tax position carefully. For example, if you have multiple investment properties that are negatively geared (the rental income is less than the expenses of the property), the negative amount could be offset against other income including salary. 
4. Obtain a quantity surveyor’s report
Deprecation refers to a value assigned to the wear and tear of a property of equipment. You can claim a tax deduction for wear and tear without spending any additional money. To ensure you get the maximum deduction commission a quantity surveyor’s report on your investment property.
 
5. Pay up superannuation
If you are self-employed or employed by your own company, paying into your superannuation before the end of the financial year can be an effective way to minimise tax.
 
6. Cash is king
Lodging your tax as early as possible will help ensure your receive your refund sooner, therefore resulting in a boost to your cashflow.
 
7. Engage an expert
To get the most out of your return we recommend investing in an accountant who specialises in property investment.
 
8. Plan for the year ahead
Now you have done all the hard work why not take the time to sit down with a property advisor and plan the year ahead. Are their opportunities to build your portfolio? Could a renovation help you achieve a higher rental income?
 
Cameron Deal is the founder of Melbourne buyer advocate and property advisory company <a href="https://www.infolio.com.au" target="_blank">Infolio Property Advisory</a> 
For <a href="http://propertyobserver.com.au/ebooks/free-ebook-top-21-tax-strategies" target="_blank">more end-of-financial-year tax strategies, download our free eBook.</a>
 
 
 
</body></html>

cdeal-QdyJUR3QXp

Eight tips for property investors to maximise their end-of-financial-year tax returns

<html><body>
Borrowers will have to wait until July at the earliest for the next rate cut, according to the latest Bloomberg poll of economists.
Just four out of the 19 economists surveyed by Bloomberg expect the RBA to cut rates again when it meets on June 5.
Analysts say the Reserve Bank might wait for fresh inflation data before making its next decision, but will also be keep a close watch on global events, particularly in Europe and in China, <a target="_blank" href="https://www.propertyobserver.com.au/news/rba-worried-about-china-industrial-slowdown-glenn-stevens/2012052854866">as mentioned by RBA governor Glenn Stevens yesterday</a>.
If the RBA relies on the official ABS data, it will have to wait until August 7 to make its next interest rate decision, as June quarterly CPI data will only be released on July 25.
Westpac chief economist Bill Evans expects at least a 50-basis-point cut between now and August, but says Westpac is reserving its right to review its forecast on the RBA's decision at its June 5 meeting “until next week, when more information will be available around the global situation”. 
“We were also disappointed at the poor response of Consumer Sentiment in May and the continued deterioration in respondents' already weak confidence about job prospects. That prompted us to subtly moderate our view from 50bps in June/August to 'at least' 50bps. 
“With the RBA's concerns around Europe and the assessment that policy is only mildly stimulatory the case for an immediate rate response is respectable. In fact a case to front-load the cut to offset any further confidence damage from Europe is also respectable,” says Evans.
The Reserve Bank might be swayed to move earlier by fresh data from other sectors, which will come out of over the next few days. 
Tomorrow retail trade figures for April will be released giving an indication of consumer sentiment, while on Thursday building approvals data for April will give the RBA a sense of whether residential construction may pick up in the months ahead.
The RBA will also be able to reflect on a weaker housing market when the RP Data-Rismark May Home Value index is released on Friday.
RP Data national research director Tim Lawless says the housing market over May has remained “fairly soft, suggesting the recent interest rate cuts and strong labour force results are yet to have a positive influence on housing market conditions”.
“Over the month to date, the daily RP Data-Rismark Home Value Indices have fallen lower for each of the major capital cities apart from Adelaide,” he says.
Retail sales figures are forecast to rise by just 0.2% in April after an unexpected 0.9% increase in March.
The RBA will also take note of the disappoint result in the May Westpac Melbourne Institute Index with consumer sentiment rising just 0.8% despite the 0.5-percentage-point rate cut.
 
 
</body></html>

lschlesinger-FZcF9M3vE6

Reserve Bank may put rate cut cycle on hold in June: Economists

<html><body>
It is soon evident in this discussion with guest Joe David, special counsel in the property and infrastructure group from national law firm Corrs Chambers Westgarth Sydney office, that in his well-exercised view, two key factors underpin the legal foundations of our property market: Torrens title (together with consumer protection legislation) and the quality of contracts.
Firstly 1858 marks the introduction of the ground-breaking Torrens title system of title registration (initially in South Australia), and today its “reputation” continues to build the security of our major residential projects.
According to Joe David, as a result of laws introduced on January 27th, 1858 by Sir Robert Torrens (see notes below), Australia’s internationally regarded property laws and land title system were soon to be the key foundation of the local real estate market.
And that is still so today, and as we will see spreading way beyond the borders of South Australia. However it is Joe’s view “it is the developer’s reputation and the fact that our property industry has kept pace with the expectations of today’s buyers that together so well service the needs of our present-day market.”
With over 35 years’ experience acting for major developers, Joe David talks about some very clear cut and valuable in-sights across the project marketing sector.
<img src="/images/stories/joedavid.jpg" width="350" style="float: left; margin: 5px;">
Joe is very well qualified to give up his time to take part in this series of posts. Heading up the developer sales group at Corrs, Joe has his focus on what he terms “the money end of the project”. From my point of view that’s a few very simple words that mean a great deal. After all it requires little conjecture to imagine circumstances where as Joe puts it, “if a contract is not watertight when it comes to settlement a developers investment could be at an unacceptable level of risk”.
The progression of quality contracts is one that Joe returned to frequently during our conversation. Throughout his 35 years, Joe has worked with many of Australia’s major developers including Mirvac, a group he labels “as trail blazers”, in particular for the way that it has been at the forefront in selling off-the-plan projects for more than two decades.
A great deal of his experience comes from being involved with a raft of major projects including Quay Grand, Newington (part of Sydney’s Olympic precinct), Jackson’s Landing and Walsh Bay.
“Many of the projects I have been involved with have included a wide range of title structures not only typical freehold and strata title, but also complex community title and leasehold projects and in some projects a mix of titles. Layer upon layer.
“These structures directly reflect in how contracts are drafted. They also imitate I think, the more complex nature of today’s urban environments and so this helps explain why in part contracts have had to become big and complex.”
It is against such a track record easy to understand why Joe David’s faith and understanding of property law in the project marketing arena allows us to observe some valuable and interesting insights.
In the sales and marketing of large developments, they can ‘suffer’ from being very complex for buyers to comprehend, and this is understandable and Joe is correct to highlight that the creation of any large community needs to be well documented as far as possible from the outset.
World-beating property law
Few would argue with his starting point – “It is good property law, the Torrens title system, that ensures title security, title that is guaranteed by a process of registration so that every buyer can have absolute confidence in the title of the property they buy.
“Our title system is paramount and we owe a great deal to Sir Robert Torrens. ‘Title by registration’ and how the title relies upon certified boundaries and registered plans, not only assures title but the exact description of the property is also clear, the registered lot and plan details.”
And with some major projects attracting offshore buyers there are clear benefits flowing from Australia’s title and contract security.
“With projects that are taken offshore Australia’s title system is proven to be popular with overseas buyers. Even where fraud occurs, there is a statutory system of compensation available. When you buy from the registered proprietor of real estate title with very few exceptions is guaranteed by the state.”
When I reflect upon Joe’s remarks, I suspect we should not always take the ‘advantage’ for granted. While fraud is very rare under our system, I feel that we should be re-assured that title does help to underpin major developments taken off-shore. Furthermore, our contracts enhance access to finance and the entire sales and marketing path runs efficiently.
More on pages 2, 3 and 4
 
<hr class="system-pagebreak">
Contracts – the size of a telephone book
Joe rightly points out that the marketing of a project that is not yet built presents some hurdles for the developer and buyer. The buyer is looking at the product we are selling that may frequently be on a site where no work at all has yet to be undertaken.
Then under most circumstances the developer will be looking at a commitment of tens of millions of dollars or even much more, naturally while this is a backdrop we are all familiar with it is one that requires a secure and detailed contract. The contract needs to work to meet the needs of everyone involved in each transaction. I think it is also important to remember that some projects can involve hundreds of individual contracts, and this can create extraordinary pressures.
For example in talking to Joe, a major release or launch can bring any number of buyers together, in a limited time, in a competitive sales path, where contracts must run smoothly and result in secure transactions. These pressures need to be addressed early and not surface during the launch day itself.
“Over a number of years contacts have become more complex and this is in response to varied circumstances, like those outlined while many will relate to the title structure of the project.
“This has also resulted in more detailed vendor disclosure – more community rules, management statements, complex strata titles that will have building rules to ensure that as far as possible the strata scheme runs well when the building is complete.”
Joe points to the fact that there can also be a mix of residential, retail and commercial users all within the one project.
“These sometimes very large mixed use developments, all give rise to varied rights and obligations and these need to be fully documented with clear boundaries, and rights between the different parties. After all nobody wants any sort of dispute aggravated by a poor set of management rules.”
However in Joe’s experience it is the reputation of the developer that is central and even the most complex documentation and contract cannot make up for a solid foundation underpinned by a AAA track record.
Over the last few years the developer’s reputation has become more important and even more so now that finance is a complex challenge for many developers.
“There is always the need to achieve ever-more pre-sales levels to gain finance, as banks and other sources of finance are now ever-more anxious that pre-sales contracts are secure.
“Financiers are looking very closely to ensure that results in ‘qualified pre-sales’ so that when the project is complete, as I have said earlier, the buyers will be required to settle. So that the sales will be there and secure at the end of what can be a long lead-time. When the building is complete and the buyer gets what they paid for, so does the developer and the contract has the central role of underpinning this.
“There could be circumstances where a weak or badly drafted contract could see buyers, look for ways not to settle and succeed because of some flaw in the contract.
“It’s I am sure obvious that if you have huge financial exposure at the end of a 2 or 3 year construction period with a lot of cash going out, the contract and the buyers need to be rock-solid.”
However in a complex market, the importance of secure contracts also extends beyond the document itself and the one-off relationship between the Vendor and Purchaser.
There are other factors that Joe cites including for example one person or entity buying several apartments, and there are limits on the ratio of overseas buyers to local buyers, because both these examples might increase risk, and today financiers are very risk sensitive.
“And so returning to the core of what we have been discussing I return again to highlight that at every level the quality of our contracts, financial requirements and security of title help to underpin activity, even in the most complex project.”
More on pages 3 and 4
 
<hr class="system-pagebreak">
 
A fair balance
All contracts involve two parties and so a contact to buy into an off-the-plan project does however clearly need to work for all involved – the developer, the financer and of course the buyer must all have rights and safe guards.
“Because there are risks on behalf of the developer and there are expectations for the buyer, there are rights for all sides and again I have to come back to the importance of reputation, it’s so very important, and a solid brand for a major developer is bankable.”
Clearly the purchaser is making a commitment to a property they cannot see, to a property that they might not have title to for many years and it’s purchase will usually affect their future. Every buyer will also have to make a financial commitment.
Joe, like all of us, is aware that many projects being taken to market are large and complex thus creating a complex task for the project team.
“Until the project is finished the developer will not earn any income, they will not recover any of their costs and nor will they realise any profit. In fact until the project is sold and sales are settled the developers costs and liabilities, are almost open-ended, in a way it’s a like a vacuum.”
The contracts used in this environment, need to be fair and any rights that a buyer might have to cancel or not complete the purchase need to be for substantial departures. And while a definition of substantial can be hard to define unfair contract terms are now covered by legislation. There are some core areas to consider like any size variations of individual apartments, the quality and extent of finishes and the contract sunset clause.
“From a consumer’s perspective there has been some general heightened awareness of contract terms. The spot light given to ‘unfair’ contract terms associated with some industries, like telecoms and gyms has helped make consumers more sensitive.”
Again here we can see the importance of a developer’s reputation so that buyers can have the confidence in the delivery of quality products.
Some of the key issues that may be high on any list of concerns among buyers are according to Joe already addressed because of the more advanced planning criteria when projects go to market, as they have had to meet substantial council planning and other conditions such as heritage.
“Size variation is a major area of concern, and just what is an acceptable variation before any sort of compensation is due or a right to cancel is engaged. However a well-drafted contract will address this and also how any price adjustment is to be made.”
Is a variation of 3% satisfactory or is 5%? When this happens it is important that good will prevail, as the developer’s reputation will come into play.
“Contracts have I think kept pace with the growth of medium density living, and despite the fact that contracts are more complex, I do think that buyers do understand the limitations of what is involved.”
In general it is a remarkable stable environment
Pre-sales are very important, for apartments and also for house and land products. State and federal laws work to safeguard all contracts.
However according to Joe David the last 30 years has seen the experience of the project marketing field gain in quality and lessons have been taken to heart leading to a very stable market.
In addition to size variations in contracts, as we have discussed the sunset clause is in Joe’s experience also important.
In marketing a project there needs to be the assurance and security that it will complete on time, and in Joe’s view where there are circumstances when any increased lead time is needed this needs to be clearly addressed.
More on page 4
 
<hr class="system-pagebreak">
 
Quality marketing information
While not a direct part of any contract, marketing information also plays a role in this topic.
Almost any project marketing sales path now involves the increased use of highly developed artists impressions, computer generated images and extensive display suites.
“In my view these items need to have a good level of accurate and reliable information and the reputable developers and their marketing agents are very experienced in doing this.
I would also absolutely encourage that items like inclusions are covered in detail. I am an advocate of adding more and not less meat – there will always be questions from buyers, – but it is important to ensure equivalent quality is provided and that descriptions and marketing material always avoids any sort of vagueness or uncertainty.
Floor plans and finishes schedules are also key elements, they need to be easy to understand, they need to have focus on the purchaser, and they are key elements in the contract that are always looked at.”
My view is that the marketing suite and core materials that Joe highlights like plans and finishes schedules are the face of the development, they in-turn underpin the developers reputation and so should never be approached in any sort of half-baked manner.
Comparison with auctions
And as we start to wind up this discussion with Joe, I was keen to get his view on a comparison of project contracts and the given popularity of auctions.
“We all appreciate that auction contracts are used for a completed product, they are so popular as the sale is binding ‘at the fall of the hammer’ – the sale is made and the property is sold. The auction aims to flush out the most willing buyers beforehand and can also deliver a much higher than anticipated price.
And while the two areas are very different, vendor disclosure also extends to auction contracts.”
Improvements
Thanks to Sir Robert Torrens and an excellent track record of contract development and professional marketing we look in good shape. In fact we have even exported our land title expertise to many international destinations including the Middle East and Singapore, still there are areas of improvement.
“I think reputation can never be under-valued. I do not think we will ever see a 2-page sales contract. However I think it is track-record, reliability, resources and trust that, alongside quality marketing that will continue to encourage improvements in this area.”
The industry sends out the call via marketing for consumers to come and see our projects and we invite buyers to make the purchase.
“We then need sound contracts to ensure clients receive their money in the end, and buyers receive a quality end property. All underwritten by trust and reputation.”
 
Note: A little bit af background
Sir Robert Richard Torrens (1814-1884), public servant, politician and land titles law reformer, was born in Cork, Ireland, son of Colonel Robert Torrens. On December 12, 1840 along with his wife he arrived in South Australia.
Years after arriving in South Australia local titles were in an unsatisfactory state and, as he put it, land was no longer “the luxury of the few”, therefore “thorough land reform … [was] essentially the people’s question”.
He stood for Adelaide in the House of Assembly elections of 1857 and, almost entirely because of his espousal of land titles reform, topped the poll. He was Treasurer from October 24, 1856 to August 21, 1857, he published a further draft of his proposed bill on April 14 and 15 and introduced it as a private member’s bill in yet a third form on June 4. He was premier from September 1 to 30, but no action was taken on the bill until November 11, 1857, when the second reading was carried. Despite very strong opposition, mainly from the legal profession, it passed through both Houses and was assented to on January 27, 1858.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
</body></html>

pchittenden-eLqUUC8TWW

Torrens title and contracts underpin the legal foundations of our property markets

<html><body>
The major banks' share of the mortgage market is increasing, particularly since the major banks' acquisitions of smaller lenders, according to Credit Suisse.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/csmay241.gif"><img src="/images/stories/csmay241thumb.gif"></a>
 
 
</body></html>

cknowlton-QnEa6ntUYP

Major banks' share of mortgage market increasing: Credit Suisse

<html><body>
The Commonwealth Bank has today cut interest rates on some of its fixed-rate home loans by up to 0.4 percentage points. 
The rate cut matches the number of basis points it reduced its variable rate mortgages by on May 11, taking its standard variable down to 7.01%. 
However the bank has left its three-year fixed-rate mortgage offering – considered the benchmark fixed-rate product – unchanged at 5.99%. 
Click here for Property Observer’s three-year fixed-rate guide. 
The bank’s two-year fixed-rate product has been reduced by 40 basis points to 5.79%; the four-year fixed-rate product by 0.35 percentage points  to 6.29% and its five-year fixed-rate product by 0.35 percentage points to 6.39%. 
It is the second time this month that the bank has cut its fixed-rate home loan offering. 
On May 8, the Commonwealth Bank cut its one and three-year fixed-rate home loans by up to 0.34 percentage points. 
Earlier this month, Westpac has cut its headline three year-fixed mortgage by 20 basis points to 6.19%.

HSBC has cut its three year fixed-rate product to 6.09% or 5.99% for those investors who take up the interest-in-advance offering

ME Bank has also cut its three-year fixed rate mortgage product to 5.99%.
 
</body></html>

Commonwealth Bank cuts fixed rates by 0.4 percentage points, but not three-year fixed product

<html><body>
The Reserve Bank has presented the carrot, but few borrowers appear to be biting, according to mortgage enquiry figures from mortgage broker Loan Market. 
Loan Market, part of the Ray White Group, has recorded only a 5% increase in loan enquiries to date in May compared with April. 
The Loan Market update follows mortgage comparison website Ratecity.com.au noting that the biggest change in borrower behaviour of late has been an increase in refinancing activity, with 18,000 borrowers refinancing their home loans in March – the highest number of refinanced home loans in one month since April 2008. 
Loan Market says the underwhelming response from consumers to date means further stimulus is needed. 
“The RBA’s 50-basis-points rate reduction was an essential starting point and with most banks passing on a significant amount of the rate cut, mortgage holders have been able to start better combat the rising cost of living,” says Loan Market corporate spokesman Paul Smith. 
“But it looks as if more reductions from the RBA will be needed to make a real impact on the economy, especially in housing and retail.” 
“With the situation in Europe deteriorating over the past few weeks again, fresh concerns over the domestic impact of a eurozone collapse will keep consumer confidence reserved and subdued.” 
“The RBA has room to take the cash rate down significantly, and we expect to see the official rate lowered again at the central bank’s June meeting,” he says. 
A recent Loan Market online poll found <a target="_blank" href="/news">almost 80% of consumers were using the benefits from the May rate cut to boost their home loan repayments or increase savings. </a>
Only 2% of respondents were planning to spend the extra cash resulting from the interest rate reduction. 
“Further rate cuts are essential to revive struggling sectors such as retail and housing which have been floundering in this two-speed economy,” says Smith.
 
{module What do you intend to do given the current interest rate fluctuations?}
{module Have you changed lenders in the last six years?}
</body></html>

May rate cut failing to stimulate mortgage demand: Loan Market

<html><body>
The federal government will fund two-thirds of the cost of mortgage brokers obtaining a diploma-level qualification, the Mortgage &amp; Finance Association of Australia (MFAA) has announced at its annual conference currently underway in Adelaide. 
The MFAA will receive $2.4 million as part of the government’s National Workforce Development Fund. 
The money will pay two-thirds of the cost of around 3,000 MFAA members obtaining a Diploma of Finance and Mortgage Broking Management. 
Also at the conference, the MFAA announced that it would extend the deadline for members acquiring the diploma by six months from June 30 2012 to January 31, 2013. 
However, members must have enrolled in a course by June 30, 2012. 
Under ASIC credit licensing rules, loan writers are only required to obtain the less challenging certificate IV in finance and mortgage broking. 
The MFAA requirement is aimed at raising training standards to a higher level. 
The subsidy is available to MFAA members who are yet to complete the diploma and enrol for training by June 15, 2012. 
The MFAA board has decided to give priority for these grants to members who have joined in recent years and will rely on aggregator and broker group for providing particpants. 
Almost 70% of MFAA members have completed the diploma requirement or are in the process of completing it. 
Participants in the scheme will be able to choose from nine MFAA preferred education and training providers. 
MFAA chief executive Phil Naylor says the funding demonstrates the federal government is “well and truly behind MFAA’s efforts to increase education and service standards in the industry” 
“We are hopeful that, following this success, we will be able to provide members with further financial assistance for their professional development in the future,” says Naylor. 
Based on new home lending figures for the March quarter compiled by the Australian Bureau of Statistics, mortgage brokers were the source of $23.4 billion worth of home lending during the March quarter, with annualised lending volumes of close to $100 billion. 
Mortgage brokers provide 42% of home lending in Australia up from 25% a decade ago.
 
 
 
 
</body></html>

Federal government to subsidise MFAA mortgage broker training

<html><body>
Westpac chief economist Bill Evans says the Reserve Bank could cut rates by 50 basis points over the next three months, taking the cash rate to a three-year-low of 3.25%. 
He bases this expectation on the deteriorating situation in Europe and “disturbing weakness” in sectors like retail, manufacturing, construction and tourism. 
In addition, growth expectations for the Australian economy are now tracking below trend, according to the annualised growth rate of the Westpac–Melbourne Institute Leading Index. 
The index indicates the likely pace of economic activity three to nine months into the future was 2.2% in March 2012, below its long-term trend of 2.9%. 
“That profile is consistent with Westpac’s forecast for growth in the Australian economy in 2012 of 3% which would mean that Australia had grown below trend for five consecutive years,” says Evans. 
The last time the cash rate was at 3.25% was in April 2009, when the RBA was curbing the effects of the GFC, beginning in November 2008 with a 75-basis-point cut. 
The lowest the cash rate has been since 1990 is 3% – the rate set by the RBA in October 2009. 
“We saw in December last year that the Reserve Bank was prepared to cut rates almost entirely due to its concerns around Europe and relative to December the risks around Europe are now decidedly more severe,” says Evans. 
“Back in December the bank assessed the Australian economy as growing around trend whereas now there is explicit recognition of the disturbing weakness in sectors such as retail; manufacturing; construction and tourism. 
“Policy settings have eased since December, but only from ‘mildly contractionary’ to ‘mildly stimulatory’. 
“Therefore there is a very strong case for further policy easing. The exact timing and extent of the easing is likely to be dictated by global events in the run up to the next meeting but the important point is that the official cash rate is very likely to be lower by at least 0.5% over the course of the next three months.”
 
 
 
 
</body></html>

Cash rate could fall to 3.25% by August: Westpac’s Bill Evans

<html><body>
The value of lenders mortgage insurance claims have declined since the GFC, according to Credit Suisse.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/csmay232.gif" rel="shadowbox"><img src="/images/stories/csmay232thumb.gif"></a>
Source: Credit Suisse
 
 
</body></html>

Australian mortgage insurance claims declining: Credit Suisse

<html><body>
Nearly 18,000 borrowers refinanced their home loans in March, the biggest number of refinanced home loans in one month since April 2008, according to ABS figures.
In addition, there was a 19% increase in refinanced home loans for the 12 months to March 2012 compared withfsd the previous 12 months, according to further calculations by mortgage comparison website Ratecity.com.au.
On a state-by-state level, NSW borrowers were the most active switchers in March, with 41% of all loans comprising borrowers ditching their lenders for better deals. <state><place>Victoria</place></state> followed, with 38% of all home loans financed in the state refinancers.
Before the increase in refinancing, ANZ increased its standard variable rate by 0.06 percentage points on February 10 while lenders continued to decrease their fixed-rate mortgages over the month, including CUA, which cut its three-year fixed rate by 39 basis points on February 13.
May 2012 figures released by mortgage broker AFG also revealed an increase in refinancing activity, with borrowers showing a greater willingness to move away from the major banks and refinance with a non-major lender.
Non-major lenders grew their share of the mortgages refinanced by AFG brokers from 24% to 26% over the three months to May 2012, compared with 21% for the last six months of 2011.
Non-major lenders with greatest market share were Suncorp (3.6%), AMP (3.5%) <place>Macquarie</place> (2.5%) and ING Direct (2.1%).
Among the smaller lenders to record an increase in refinancing activity has been the Greater Building Society, which says it is continuing to experience an increase in people wanting to switch from the major banks and other financial institutions.
Product manager David Bryde says that to the end of April 2012, the number of customers refinancing to The Greater is up 24.6% on the same period last year following previous apathy and misinformation about switching lenders.
“People are starting to vote with their feet as they realise that there are large, safe, well-run alternatives to the major banks offering more competitive rates, lower fees and better service,” Bryde says. 
“People can save thousands, sometimes tens of thousands of dollars by switching. 
“Switching is easier than people think and in many cases, people don’t even have to talk to their existing lender,” he says.
 
RateCity spokeswoman Michelle Hutchison says the number of borrowers who switch lenders is likely to increase in the coming months
“While there’s still a lot of work to do to make switching easier, it’s clear that Australian borrowers are far more comfortable switching their home loan than ever before, and the ban on exit fees for new variable rate loans since July 1, 2011 must be playing a part,” she says.
“We believe we’re only beginning to see the very start of the impact of these changes and it’s likely that more borrowers will switch lenders more often than in the past.”
{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>

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