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.

Joel Robinson

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

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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>
The Reserve Bank of Australia kept rates on hold at its April meeting despite spending “some time” exploring reasons for the weakness in many of the indicators for housing turnover and building activity across Australia.
But taking into account other factors, the board decided a month’s delay in any further cutting of rates was the prudent thing to do.
“They noted the apparent sensitivity of developers to the outlook for dwelling prices,” <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2012/03042012" target="_blank">the RBA minutes note.</a>
“New dwelling construction had fallen in the December quarter and there was little sign of a pick-up in building or loan approvals, though house prices had shown some signs of stabilising recently.
“While auction clearance rates in Sydney and Melbourne had picked up a bit of late, they remained below their average levels,” the RBA minutes note.
But the board, noting it had eased monetary policy late in 2011, concluded slower growth in demand could be expected to result in a more moderate inflation outcome, which might then present a case for a further easing of monetary policy.
“The board would have the opportunity at its next meeting to review the inflation outlook based on comprehensive new data on prices, as well as information on demand and output.
“Members judged it prudent to evaluate those data before considering a further policy adjustment,” the minutes conclude.
The board noted indicators of business activity had been mixed, labour market conditions remained subdued, and that world economy growth was at a below-trend pace with the moderate expansion of the US economy continuing but economic conditions in several European countries remaining very weak.
 
 
</body></html>

jchancellor-FAypfDUnLy

Housing industry downer not quite enough as RBA awaits security blanket of benign inflation data

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Last Tuesday I predicted ANZ would hike rates by between five basis points and 7.5 basis points, and noted that this could be a bit of a game-changer for the RBA’s May meeting. 
On Friday the bank lifted them by six. While this is bad news for ANZ borrowers, it was a commercially astute decision for the bank and its shareholders for a variety of reasons. 
First, Friday’s hike will improve the bank’s profit margins, which is important for banks in an environment in which revenues are growing slowly and the historical returns on shareholder equity will be difficult to maintain.
Second, it starkly reinforces ANZ’s (superficial) argument that there is a big conceptual disconnect between the lending rates banks set and the cash rate that the RBA targets. 
As I have shown before, this is more fiction than fact and confuses changes in profit margins with the actual level of lending rates. To be sure, changes in funding costs will directly affect profit margins, unless product prices are varied accordingly. The question then turns to what “reasonable” and “competitive market” profit margins should look like. That is a debate I’ve tried to stimulate for years, but it remains largely unresolved. 
In terms of the actual level of borrowing rates, the RBA is, on average, the ultimate arbiter of the price of money in the Australian economy. 
The third factor that makes ANZ’s decision smart is that it amplifies the pressure on the RBA to cut rates in May. To be clear, a rate cut is by no means certain. If we get a high “core” or “underlying” quarterly inflation print on April 24 of 0.8% or more, and the historical inflation data does not revise down (or revises up), then the chances are that the RBA will leave rates unchanged. 
Upping the ante on the RBA to drop rates further in May is important to the banks for two reasons. First, it gives them another bite at the profit expansion cherry: they can choose not to pass on the full 25-basis-point RBA cut and internalise this as margin. 
In 2012 ANZ has taken back about 60% of the RBA’s second, December rate cut. But actual lending rates are still lower than they were at the end of November, and will be lower again should the RBA be convinced that it can justify pulling its trigger finger a third time. 
A second reason why the banks want a rate cut in May is because, all things being equal, banks do better in lower interest rate environments. Credit growth and revenues accelerate, default rates and impairments typically decline, and asset prices and hence collateral values rise. 
A final point to recognise is that wider bank margins will probably help encourage more competition in the long run. It will give nimbler players with lower cost bases (but higher absolute funding charges) a better chance of competing with the major bank oligopoly, which has numerous institutionalised advantages.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The above article is not investment advice.
 
 
 
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Banks seeking RBA interest rate cut too: Christopher Joye

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Friday’s minor rate movement by ANZ was the rate increase, for both fundamental and tactical reasons, the bank had to make.
In the scheme of things six basis points is neither here nor there, and certainly not something that deserved Wayne Swan’s mock outrage. Swan seems to have forgotten that the last time ANZ lifted it home loan rate, in February, it did so by the same six basis points – and the other major banks (and some not-so-major banks) responded with increase of between nine and 15 basis points.
So, to a degree, ANZ was only playing catch-up on Friday.
There is a fundamental justification for the banks increasing their rates slightly. They do have longer term pre-crisis borrowings continually maturing that have to be re-financed in the current market.
While wholesale borrowing costs are lower than they were at the height of the global financial crisis and have been broadly trending down (apart from a spike in recent weeks as fears about the stability of the eurozone flared again), they are still elevated, which means the banks’ average borrowing costs are still edging up as the longer-term borrowings are re-financed.
The other fundamental reason for raising the cost of lending is that banking is essentially two-dimensional – there is both an asset and liability side to banks.
On the asset side, demand for credit is extremely weak. There is no volume growth in the system to offset the pressure on margins from higher funding costs. On the liability side there is fierce competition for deposits as the banks try to reduce their exposure to the volatile and unreliable wholesale funding markets.
That competition is continuous, given that term deposits have relatively short maturities, and is likely to be a long-term feature of the system because all the banks are targeting even higher proportions of deposit funding over time.
That means there will be continuing upwards pressure on the relative cost of those deposits – the interest rates the banks have to offer to attract and retain them – and therefore pressure to re-balance the pricing of the relationship between borrowers from the banks and lenders to them.
From the perspective of the whole system, adding a marginal disincentive to borrowings and a marginal incentive for savings – slightly re-balancing the relationship between savings and borrowings in favour of savings – is not such a bad thing.
Tactically, the ANZ needed to restore its capacity to compete for deposits without sacrificing margin relative to its peers. It also needs to get its customer base used to frequent small movements in its rate – in both directions – if its bold new rate-setting policy is to be effective.
In December, ANZ announced it would in future set its rates independently of the Reserve Bank’s first-Tuesday-of-the-month board meetings, reviewing them every second Friday of the month. The strategy was to de-link ANZ’s rate movements from the RBA’s to emphasise that bank funding costs aren’t set by the RBA decisions.
The RBA can strongly influence the absolute level of rates in the market, but not the price investors demand from borrowers relative to its cash rate, and the key issue for the banks is not the absolute cost of funds but the spreads they experience over the cash rate relative to those they charge borrowers.
For ANZ’s new approach to rate-setting to work, it really needs to move its borrowing rates regularly, ideally in both directions and by modest amounts, to get its customers used to the notion that funding costs are moving continuously without getting too far out of kilter with its competitors and therefore creating a competitive vulnerability.
Friday provided a major opportunity. Not only was ANZ largely playing catch-up with its peers, which makes it harder to argue it was somehow profiteering at the expense of its customers and therefore has made it a smaller target for the bank-bashing brigade, but the RBA made it clear after holding official rates unchanged earlier this month that if the March quarter inflation numbers don’t contain any nasty surprises when they are disclosed on April 24 it is likely to cut the cash rate.
If that were to happen, and it is probable albeit not certain, a 25-basis-point reduction in the cash rate would more than compensate borrowers for ANZ’s six basis point increase – and also provide another opportunity for all the banks to hang onto some of the reduction. ANZ’s move increases the probability that the RBA will cut official rates.
The RBA has been saying consistently in recent times that the banks have a case when they argue their margins have been eroded by rising funding costs and that it takes that into account in its own rate deliberations. In fact, it has said that official rate would be a full percentage point higher if the banks had simply been passing on official rate movements.
It uses the cash rate to target the actual lending rates within the economy that it believes are appropriate for the state of the economy.
In that sense, in terms of the rates borrowers actually pay, what ANZ or the other big banks do is largely irrelevant – if the RBA thought the banks would retain all of a 25 basis point rate reduction, but wanted the entire reduction to flow through to the economy, it would simply cut official rates by 50 basis points. It makes monetary policy slightly more complicated but not necessarily less effective.
ANZ’s rate-setting policy, while it adds noise to the process – and hopefully a better understanding among borrowers, depositors and politicians about the relationships between official rates and the rates bank customers pay and receive – doesn’t change it because the RBA knows the bank can’t move significantly away from its competitors.
This article originally appeared on<a target="_blank" href="https://www.businessspectator.com.au/"> Business Spectator</a>.
 
 
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ANZ's rate rise molehill: Stephen Bartholomeusz

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There have been no announcements from the major banks about their variable interest rate settings following ANZ lifting its rates by 0.06 percentage points on Friday.
The only announcement to come out today was from Westpac subsidiary St George, which announced it was cutting its fixed interest rates from today for a limited time.
St George has cut the interest rates on its fixed one-, two- and three-year home loans to 5.99%. 
When ANZ lifted rates independently on February 10, Westpac made its announcement on the same day, but Commonwealth Bank and NAB only announced changes on February 13.
In the absence of any announcement, the St George standard variable interest rate sits at 7.42%. 
 
 
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No variable interest rate decision from remaining big banks as St George trims fixed rates

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The Real Estate Institute of NSW (REINSW)  is urging the state government to allow first-home buyers to pay off their stamp duty over three years rather than in one upfront lump sum.
The REINSW says its staged payment plan would reduce the burden of upfront stamp duty on top of the required house deposit for first-home buyers. 
Under the proposal, government revenues would be protected with the stamp duty obligation guaranteed against the property in exactly the same way as unpaid land tax and council rates.
The proposal is one of three initiatives the institute is proposing to the O’Farrell government two months ahead of the next state budget on June 12 aimed at stimulating the property sector. 
The other two proposals are for the overall rate of stamp duty to be cut and that urgent reform of planning controls should be undertaken to reduce the cost and red tape of new residential development to help alleviate the current undersupply of housing. 
“Housing supply and affordability are the key issues facing NSW and which need to be tackled head on in the upcoming state budget”, says REINSW president Christian Payne. 
“Convoluted planning controls are delaying the delivery of new housing stock, which is urgently needed to meet the growing demand of thousands of people flocking to live in Sydney. 
“As a result, housing affordability is being squeezed with many are simply unable to afford their own home. 
“Add to the already high price of real estate in Sydney the significant additional burden of stamp duty and you have a market which is pushing the Australian dream beyond the reach of many. 
‘It is only through innovation that we are going to make inroads into these problems," he says. 
“To that end, the REINSW stands ready to assist the NSW Government in developing further a range of initiatives which we believe could make a real difference to housing supply and affordability without threatening government revenues from taxation,” says Payne. 
The stamp duty proposals follows the NSW government ended its first home plus scheme on December 31, which provided exemptions or concessions on transfer duty for people buying their first home in NSW. 
It has been replaced by the first home — new home scheme, which limits the exemptions and concession to new homes or vacant land only. 
Research carried out by the REINSW shows that when property transfers taxes (stamp duty) were cut in Western Australia and the Northern Territory, government revenues actually increased.
“Between 2003 and 2006, Western Australian cut property transfer duties by 0.9% yet related revenues rose by $706 million. 
“Similarly in the Northern Territory property transfer rates were cut by 0.45% that resulted in an increase of $20 million in related revenue, a rise of 20%,” says the REINSW.
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‘Pay as you go’ stamp duty scheme needed for first-home buyers: REINSW

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Here’s a rundown of the standard variable rates on offer from Australian banks and non-bank lenders, starting with the cheapest. All rates correct as of 9am, April 16.
 
6.32%
The standard variable bank rate that non-bank lender Collins Home Loans is currently charging its customers. 
6.60%
The standard variable bank rate that University Credit Society (WA Mutual Banking) is currently charging its customers.
6.74%
The standard variable bank rate that ME Bank is currently charging its customers, having decided to keep rates unchanged in April.
6.96%
The standard variable bank rate that Newcastle Permanent is currently charging its customers.
7.04%
The standard variable bank rate that Heritage Bank is currently charging its customers.
7.30%
The standard variable bank rate that Bankwest is currently charging its customers.
7.38%
The standard variable bank rate that HSBC is currently charging its customers.
7.40%
The standard variable bank rate that Bank of Melbourne is currently charging its customers.
7.41%
The standard variable bank rate the Commonwealth Bank is currently charging its customers.
7.42%
The standard variable bank rate that St.George is currently charging its customers.
7.42%
The new standard variable bank rate ANZ will charge its customers from April 20 after lifting rates by 0.06 percentage points on April 13.
7.42%
The standard variable bank rate that BankSA is currently charging its customers.
7.42%
The standard variable bank rate that AMP is currently charging its customers.
7.43%
The standard variable bank rate that Suncorp is currently charging its customers.
7.45%
The standard variable bank rate Bendigo and Adelaide Bank is currently charging its customers.
7.46%
The standard variable bank rate Westpac is currently charging its customers.
7.46%
The standard variable bank rate Bank of Queensland is currently charging its customers.
7.62%
The standard variable bank rate Citibank is currently charging its customers.
 
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Standard variable mortgage rates guide: From Collins Home Loans to Citibank 

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Following on from ANZ raising its interest rates on Friday, I've summarised the results of Bloomberg's RBA cash rate survey into the chart below. Bloomberg has polled 24 economists after ANZ's decision, and I've shown the high/low forecast for each period in addition to the "median" (middle observation) and "average".
Click to enlarge
<a href="/images/stories/april16.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/april16thumb.gif"></a>
The "median" (red line) economist expects a 0.25 percentage point (or "basis point") rate cut in May followed by interest rate stability until the first quarter of next year. The median then forecasts one hike back to 4.25% in 2013. My own May forecast is currently a "more likely than not" 25-basis-point cut subject to the inflation results on the 24th, which could stay the RBA's hand. 
The "average" economist prediction (orange line) is very similar: the average thinks there is a chance the RBA does not cut in May, albeit this is a slim prospect given the average expectation is 4.03% by May. The average then thinks there is a non-zero chance of a total of two rate cuts this year, and prices in a cash rate of 3.92% until the fourth quarter.  The average subsequently starts pricing in rate hikes in 2013. 
The dotted lines in the chart show the highest and lowest forecasts. The lowest any of the 24 economists surveyed see the cash rate going is 3.75%, which implies two more cuts. In contrast, the highest see no cuts at all this year, and a first hike by Q1 next year. 
It is always good to condition one's analysis to extreme "outliers" (i.e., a Steve Keen-style scenario). One such outlier, who was not included in the Bloomberg poll, is the ALP-aligned economist Stephen Koukoulas. Prior to ANZ's decision to hike on Friday, and the strong labour market result last week that the unemployment rate was unchanged at 5.2%, Koukoulas forecast the RBA would cut by a massive 50 basis points in May (he admittedly also forecast rate cuts in February and in April). 
Koukoulas has naturally reaffirmed his 50-basis-point cut call for May following ANZ's small rate hike on Friday, although, technically, the RBA would have to cut by more than 50 basis points to satisfy his pre-ANZ views (i.e., by 56 basis points). Koukoulas thinks we will have lots of cuts going forward – many more than any of the 24 economists polled by Bloomberg. Specifically, he declares: "Get set for a 50 cut in May and probably more cuts in the second half of 2012." If this comes to pass, it will be great news for housing investors.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The above article is not investment advice.
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Economists expect one more interest rate cut in 2012: Christopher Joye

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It is a sad state of affairs that the current mood of the nation is one of pessimism about the future.
The recent hold on cash interest rates by the Reserve Bank of Australia and a rise in unemployment have no doubt contributed. The European financial crisis has softened somewhat after the Greece bail-out, but there is still a cold wind blowing for the fate of other countries, including Spain, where unemployment is now at 23% and growing.
Down Under, continuing bad news in retail sales, increasing fuel prices and an uncertain property market are not helping either. The hopes are that things will pick up after Easter but even then there is a contagious malaise that seems to have gripped us all.
Under these circumstances it is hard not to feel somewhat pessimistic. And some say we should feel honoured and grateful to live in the “lucky country”. But I pose the question, “are we really that lucky anymore?” or is it just that “everyone is lucky but some are just not as lucky as others”?
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The RBA’s decision to keep current cash rates on hold at 4.25% is the same thing as throwing a wet fish at the vast majority of home loaners in Australia. The word “disappointing” hardly describes the suffering of many families who are already struggling to reach the end of the month. Under these circumstances it is not surprising that the retail industry is in chaos. People are too afraid to spend their hard-earned cash. 
Of course for some sectors of the finance industry this is an opportunity to capture more business (and that is fair enough). 
But I don’t wear the mortgage lenders’ argument that the Reserve Bank of Australia is waiting for the latest domestic data before doing the right thing. On top of that I don’t think for one moment that home loaners are complacent about their mortgages. A much better phrase would be “scared to death.” 
I quote from a speech Angel Gurría, OECD Secretary-General, delivered at the INET Annual Plenary Conference – “PANEL: The Challenge of Deleveraging and Overhangs of Debt – Inflation and Austerity” on 13 April 2012 in Berlin, Germany where he said: 
“Herd behaviour is a case in point. A loss of confidence in the ability of policymakers to deal with current challenges affects the decisions of households to consume, of businesses to invest, and of financial markets to intermediate transactions. 
“A lack of trust in the ability of agents to honour their debts can generate herd behaviour of the same sort: without a clear and consistent strategy for deleveraging rampant indebtedness can seriously undermine confidence. The rollover of public debt becomes impossible if markets perceive a high risk of default. And because financial markets are interconnected, there is contagion across countries.” 
He concluded his speech with the observation “Let’s not forget that the ultimate goal of economic policy is to ensure broad and stable human prosperity.” 
The RBA’s recent statements and lack of direction have left us all worrying about the future. 
It must send out strong signals for optimism and cut rates by 50 basis points in May to stimulate the economy and restore confidence. 
The Chinese use two brush strokes to write the word crisis. 
One brush stroke stands for danger; the other for opportunity.
Tim Mansfield is a 30-year global  veteran in the real estate industry and Founder and CEO of Sydney-based buyers’ agents <a href="https://www.primepropertybuyer.com" target="_blank">PrimePropertyBuyer</a>. You can follow Tim on Twitter by clicking <a href="https://twitter.com/#!/tim_mansfield">here</a>.
 
 
 
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With pessimism lingering in the property market, the RBA must cut rates in May

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 Although we are several months shy of tax time, I was prompted by some readers to break down tax depreciation, a quite unique tax-advantageous component of property investment, in layman’s terms. By this I refer to the tax allowances for degradation of investment property contents, used to produce income/wealth, for the investor. 
Before you read further I must stress that an investment property is one that you do not live in yourself. It is not your “home”. While some people refer to the home they live in as their greatest “investment” (and indeed it is a great investment!), in the eyes of the Australian Tax Office, this is not an investment property. The biggest (and only) tax allowance you get on your home is the capital gains tax exemption that applies when you sell your home. And no, you cannot own more than one “home” at any one time. You must sell one home, tax-free, before buying another home. 
So back on to depreciation allowances for investment properties – what do I mean by this? 
Well, let’s say you bought an investment property, say it is a brand-new apartment, and say you intend to hold this investment property for 20 years. In the unit, there are the basic walls, cement floors/foundations, ceilings, windows, etc. But then there are other items that deteriorate over time and can require refurbishment and/or replacement over the years. Floor coverings like carpets, perhaps curtains, even stove cook tops, some light fixtures, shower heads and so on. 
Sure, the brand-spanking-new range hood looks great in the apartment now, and your first three or four years of tenants love it, but as the years go on, these items suffer wear and tear that make them less and less valuable. The weaker state of these basic items becomes, over time, detrimental to your potential to continue to lease the property to the best tenant at the best possible rental return. In other words: wear and tear seriously affects your ability to make a profit. 
To compensate for this, the ATO says (very much in a nutshell!) “At the end of every financial year, you can claim some of the weakening value of each item as a tax deduction to help improve your bottom line.” Figuring out how much of a tax allowance you can get for your investment property is not something easily doable by yourself. You are best off to recruit the services of a tax depreciation company. There are many out there, and are all pretty much the same, though do your research and source testimonials on the ones you shortlist before appointing them. The ATO frowns upon those who attempt to conduct a depreciation report themselves, and red flags are raised. In fact (and I’d have to check my sources), it may even be mandatory that a third-party report is required, in order to lodge any tax allowances for depreciable items. 
So when does this need to occur, and what is depreciable, and by how much? The good news is you can purchase a property at any time in the financial year, and so long as you get the report written and lodged with your income tax return, you qualify for any of the tax allowances from the portion of the financial year that you owned the investment property. In fact, the ATO allows back-dating by up to two years, so if you bought a property say 08 months ago, and are panicked, fear not! But if you bought say five years ago, only the last two years’ of depreciation are claimable. 
In regards to what is depreciable and by how much, most items have some depreciable value. To assess this, the depreciator you appoint will need to gain access to the property to conduct an inspection (usually less than 15 minutes is needed). This person determines the “current” value of every item (so, stove, window sills, floor coverings, light fixtures, fences, walls, etc). They then calculate how much “value” each of those items will lose every year, and they will road map this out, per-item, for usually up to 30 to 40 years. So yes, the report can be heavy reading! The good news is you’ll pay for this report just once, and then use the findings contained within for the life of your ownership of the property. Each end of financial year, you submit the same report to your accountant when you do your tax return, and that year’s “allotment” is included in the tax assessment calculation. 
It goes without saying that the figure for say year three, will be much higher than year 27. This is due to the gradual degrading value of items. Think of it like buying a showroom-new car. Buying a new car is better than buying one second-hand, and they look and run the best, however they lose their biggest chunk of value the moment it is driven out of the showroom. Say you spend $30,000 on the brand-new car, but after year one, it is only worth $25,000. But then in year two, it may only lose another $2,000 of value – not another $5,000 of value. Year three may be $1,000, and perhaps it may average out at $500 a year every year after. The same thing applies with depreciable items in property. 
So more often than not, properties that are one to five years old have the most depreciable potential. So, that brand-new stove in the example I mentioned earlier; it may have a year one value of $1,600. The loss in year one could mean for a tax allowance of $180 for that year, but by year 30, this allowance might be only $5. But when you add up all items on the list (in addition to the stove there might be another fifty line-items), it all adds up, and it especially adds up big time, during years one to five. 
For this reason, some investors only consider properties that are aged up to five years old due to their depreciation potential. But it is worth mentioning this is certainly not a strategy that suits everyone, and especially may not suit young investors. Oftentimes, mature investors who are on six- and seven-figure annual salaries see property investment as a way to help offset much of the tax they pay and seek out properties that maximise this. 
For those of us on more modest incomes, this huge tax allowance may not offset the negatives of buying a brand-new property (paying inflated up-front costs, plus also being at risk of increasingly poor-quality construction). Sure, a property may give you no problems in the first few years, but then it may become a money-pit for you thereafter, whereas someone who purchases a 50-year old red-brick apartment block may actually have fewer problems with it. And sure, it would have much lower depreciable value from year one of your ownership of it, yes, but it may cost you less in repairs than some newer buildings. 
While there is no hard and fast rule or strategy to apply, my personal strategy is not exclusive to any type (or age) of dwelling, though I tend to seek properties in the five- to 10-year vintage, mostly because they serve many purposes: 
1)      Usually (but not always) if there aren’t any structural problems by year five, there probably won’t be. Modern constructions tend to show their wear early and up-front, or not at all. 
2)      Years five to 10, depreciation-wise, still provide excellent tax concessions. 
3)      You don’t overpay for the property (you don’t pay the marketing-costs-inflated “brand-new” price, nor do you pay the years two- to three-year “honeymoon” price).
Back to you home owners that I mentioned earlier on. If your strategy is to buy a property to live in but with multiple bedrooms and you intend to rent bedrooms two and three out as an investment component of your home, you will always be entitled to apportioned tax deductions (things like interest on mortgage repayments etc), but at the same time you’ll be up for an apportioned figure of capital gains tax when you ultimately sell your home one day. A tax depreciation report could still be worth investing in, but you’d need to seek specialist advice in this scenario. If you only intend on living in your home for a few years before turning it into a 100% investment property, certainly get the report, but wait until you vacate to actually buy it. 
My overall advice to the community is that when looking at potential investment properties: consider tax depreciation capability when short listing your top three or four. Ask yourself, is the building less than five years old? If it is older, that's OK (even if it is in fact 50 years old). If it is older, does it have a new/recent kitchen? Bathroom? Maybe new fencing, roof tiles, renovations? Extensions? Outdoor paving? These items could have higher tax-depreciable qualities than you first realise. Whenever you do purchase your investment property, be sure to pay the $500 to $1,000 one-time cost to have the report constructed, and do it about 14 days before end of tax year (otherwise if you leave it too late, the results may not come until after the tax year has ended). 
I know I haven’t mentioned just how much you can get back each year, and with good reason: it will be different for everyone, because there are so many variables at play. But I will say this; most people find that they not only re-coup the cost of the report in year one, but they also get a nice return on top within the first year. Plus you get your allotment each year for the next 28 or so years of ownership. So that alone is worth it.
Cameron McEvoy is a property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
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The benefits of depreciation, or how wear and tear can be to your advantage

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ANZ has announced it will lift rates by 0.06%.
Effective 20 April 2012, ANZ’s new standard variable mortgage rate will be 7.42%pa, the bank said in a <a href="https://t.co/4ZylQhtv">https://t.co/4ZylQhtv</a> statement.
It came at 5.18 pm, the second time in three months it has moved independent of the Reserve Bank of Australia, and ahead of the other big banks.
With the stock market closed and people heading home or to the pub ANZ had still not made its announcement on its much-anticipated independent rate call.
Economists and analysts had even jestingly been tweeting about a possible announcement to coincide with the kick-off in tonight’s AFL and NRL games.
There was even been the creation of a new hashtag: #sneakyhike.
“Where is the ANZ announcement on retail interest rates? Waiting the bounce of the ball in Collingwood vs Carlton?” tweeted former Gillard economic policy advisor Stephen Koukoulas.
Earlier economist Christopher Joye tweeted: “ANZ may be waiting for market close at 4.30 pm – a hike in rates would be price sensitive.”
He later tweeted the bank could keep interest rate steady but cut deposit rates, which would have the same effect on profit margins.
RateCity.com.au tweeted the ANZ media team:
@ANZ_Media @ANZ_AU any news on Rate Review meeting?
SBS news presenter Ricardo Goncalves tweeted: It's close of business (5pm) and still no @ANZ_Media #rates announcement. Putting in for overtime are we?
Sky News business presenter Brooke Courte tweeted: Tick.... Tick.... Tick... #Anz #rates #sneakyhike?
The March decision to keep rates on hold was made at 3.30 pm.
The February increase decision was made at 2.30 pm.
ANZ_Media ? @ANZ_Media: ANZ to increase rates for variable mortgages and small biz by 0.06%pa to 7.36%pa. 3-year fixed rate cut 0.15% to 5.99%pa...
Earlier today the bank announced a$17.8 million bond deal maturing in 2017.
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