<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

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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.
 
 
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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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chrisjoye-JYhJsTrNRC

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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sbartholomesusz-jWVzVSPmF8

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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lschlesinger-FZcF9M3vE6

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”?
<div>
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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tmansfield-Rk8rBecHRA

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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