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>
Treasurer Wayne Swan has ruled out any changes to negative gearing arrangements for property investment despite the NSW Labor leader John Robertson saying there should be a debate about its effects on the property market.
Robertson is concerned about the potential of negative gearing to push up property prices and make property unaffordable for the next generation of home owners.
"Everyone, I think, is concerned about how their kids are going to buy a house, how they're going to get into it,” said Robertson in an interview on Sky News.
"In many circumstances, these are people who've got two or three investment properties and there's no real appreciation of what negative gearing is doing in terms of putting pressure on housing prices for their kids to get their first foot in the door."
A spokesperson for Swan says the government is committed to the current tax arrangements after ruling out changes to negative gearing in the 2010 Henry Tax Review.
According to ATO figures, about 1.7 million property owners used negative gearing to claim a net rental loss of $6.5 billion for the 2010/2011 financial year.
Robertson’s call for debate on the effects of negative gearing is backed by Cassandra Goldie, chief executive of Australian Council of Social Service, and was also flagged as a potential area of reform in the Homes for All report, the first public policy document released by the Sydney-based McKell Institute.
Goldie says the McKell report highlights that “negative gearing is at the heart of the problem with inflating house prices” while at the same time not increasing the supply of housing.
"We've got a crisis here so let's have a little bit of courage to deal with it,” she told Channel 10’s Meet the Press program.
Negative gearing is considered a cornerstone of property investment, allowing property investors to claim any loss made on an investment property as a tax deduction and thus reduce their tax bill.
The McKell institute’s Housing for All report says that “federal and state governments should favour tax policies which encourage housing supply over demand”.
It goes on to say that “all politicians of all parties recognise that negative gearing and untaxed capital gains add wealth to existing home owners to leverage for second homes and investment properties without any evidence that they increase overall supply significantly; and that increasing effective housing demand in a constrained housing supply results in an increase in house price inflation and in problems of affordability for those seeking to buy”.
“Tax exemptions such as negative gearing have allowed many people to purchase second, third or even more properties.
“In the past, these may have supported the rental market, but in a market where supply is constrained it simply increases the price of housing for everyone,” the report says.
The institute says consideration should be given to “phasing out of negative gearing over the long term in relation to existing properties but perhaps retained for new properties to stimulate supply”.
The report says that those opposed to removing negative gearing argue that such a move will increase rents or lead to less supply.
“There is little evidence for this argument. Our consultations with the banking industry suggest that housing will remain an asset class with or without negative gearing.
“Housing is an investment class which is easily understood, unlike shares or other financial instruments. It has a permanence – ‘bricks and mortar’ – and certainty which many investors like,” says the McKell Institute.
ANZ head of property research Paul Braddick agrees on the need for supply-side reforms but says removing the ability for property investor to negatively gear both existing and new homes would be “very risky”.
Last year ANZ Australia CEO Phil Chronican raised concerns about negative gearing saying governments should investigate whether negative gearing tax breaks are “fostering an unhealthy focus on housing as an investment vehicle, thereby compounding affordability issues”.
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lschlesinger-FZcF9M3vE6

Government not contemplating changes to negative gearing: Wayne Swan

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In many parts of Victoria there is a shortage of rental homes and the only way the shortage will be fixed is if more individuals invest, i.e. buy housing for the sole purpose of providing it as rental accommodation.
The problem is that those who choose to do that face higher rates of stamp duty.
When the previous state government reduced stamp duty in 2007 it left the old higher rates in place for investors.
As a result, those who buy a house for the purpose of increasing the number of available rental homes pay a higher rate of stamp duty than they would if they were going to live in it.
The higher rate of stamp duty is in addition to the land tax, for which they are liable on an annual basis. It is not equitable to charge an investor land tax on the basis that the property in question is not their principal place of residence then charge extra stamp duty as well.
An investment home purchased for $400,000 is liable for $2,700 more in stamp duty than if it were purchased to live in. That is the equivalent of nearly five years’ worth of land tax.
Charging higher duty for investment properties can have two effects: firstly, it can act as a disincentive to individuals purchasing and providing rental accommodation; secondly, it can increase the cost of the accommodation to renters.
In the coming state budget the government should consider equalising stamp duty for all non-first home buyers.
Enzo Raimondo is CEO of the <a href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
 
 
 
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Victorian government should give investors a fairer go and eliminate higher stamp duty rates for investors

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John Symond’s Aussie Home Loans has acquired wholesale mortgage aggregator National Mortgage Brokers (nMB) and is looking to make further acquisitions to grow its distribution reach. 
“We are on an expansion trail and see nMB as a strategic acquisition in building our distribution capability, which is no longer just focused on our established branded mobile and retail channels,” says Symond. 
“Our move into wholesale broking will complement our branded business, which we will continue to expand. With nMB, we will accelerate the rapid growth of a high-quality business-to-business channel. 
“This will be an extension to our existing business-to-consumer model under the Aussie brand and does not affect our existing operations,” he adds. 
"Our strategy is to grow the nMB business by acquiring other aggregators and putting them into the NMB business. We'll grow nMB in conjunction with growing our other separate distribution channels such as our retail stores and our mobile broker team," he told Brokernews.com.au. 
Established in 2001 and based in Melbourne, nMB has nearly 200 mortgage brokers throughout Australia, settles about $200 million in mortgages each month with a loan book of more than $8.2 billion. 
Gerald Foley, managing director of nMB, told Property Observer it would be “business as usual” for nMB brokers, with the only change being a “change in shareholding”.
 
“Aussie has a very strong retail lending business, and we are a strong wholesale business. An approach was made, and it all made good sense,” Foley says.
NMB will continue to operate as a separate entity under its own brand and will continue to be managed by its current executive team, led by Foley. 
“We are delighted to be joining Aussie’s great operation and look forward to growing our business with its support. Aussie has the mortgage broking industry’s leading business model and operating standards, as well as being a very strong and trusted player in the market,” says Foley.
Aussie currently has a loan book of over $42 billion with more than 250,000 mortgage customers, 700 accredited mortgage brokers and 150 retail stores. 
The acquisition of nMB will increase the Aussie group’s loan book to over $50 billion, settling approximately $1.2 billion in new mortgages each month and on target for 1,000 accredited mortgage brokers within the group this calendar year.
 
 
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John Symond’s Aussie Home Loans buys National Mortgage Brokers 

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While disappointing, today’s decision by the Reserve Bank to leave the cash rate unchanged at 4.25% does not mean borrowers should be complacent about their current mortgage providers, say Mortgage Choice and RateCity.com.au. 
Both are urging borrowers to examine their current home loans to ensure they’re getting the best deal.
 
“I’m sure borrowers and consumers alike were hoping for a cut by the Reserve Bank to the cash rate ahead of the Easter long weekend,” says Mortgage Choice spokesperson Belinda Williamson. 
“However, the bank has made it fairly clear that they need our domestic data, most of which will be updated this month, to decline further before they feel compelled to move rates. “Nevertheless, today’s decision to keep the cash rate on hold at 4.25% is no cause for complacency among home loan borrowers. “Borrowers who allow their home loan to lay idle and assume their lender is doing everything they can to help them reach their home ownership goal may be surprised at what they could be missing out on,” she says. “Without comparing their lender’s loan products to those offered by others, they may be passing up the opportunity to save thousands of dollars in interest and shave months, or even years off their home loan term. “Now is a good time for borrowers to investigate how their lender rates against others in the market in terms of product pricing, service quality, accessibility, and the flexibility to accommodate your changing needs or circumstances,” she says.
 
RateCity CEO Damian Smith says borrowers don’t have to accept higher mortgage costs. 
“We’ve found 14 lenders that lifted their variable rates by as much as 15 basis points last month, which is worth an extra $30 per month for a $300,000 mortgage (based on a rate of 7% compared to 7.15% over 25 years),” Smith says. 
“This follows 44 lenders lifting rates in February – despite neither month seeing any change in the official cash rate."
“Rates will continue to be volatile, with frequent small movements from lenders most months this year. 
“But that doesn’t mean borrowers should accept higher rates. The slow mortgage market – where there were 200,000 less mortgages written last year compared to five years ago – means the ball’s in the borrower’s court. 
“Borrowers should compare what their lender is charging by using credible financial comparison websites like RateCity and demand a discount if it’s higher than what other lenders are offering. If they can’t beat it, then make the switch.” 
According to Smith, most lenders, particularly major banks NAB, Commonwealth Bank and Westpac, are likely to wait for ANZ’s announcement of any rate movements from its Rate Review meeting on April 13 before they decide to move their rates. 
“ANZ Bank has become the de facto price setter for the mortgage industry as we believe that most lenders will wait until after ANZ reviews rates on Friday, April 13 before deciding whether to move their own rates. 
“What this means is that we now need to know both the RBA’s decision and the ANZ’s decision before seeing what the rest of the market will do,” he says.
 
 
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Rate hold decision no cause for borrower complacency: Mortgage Choice and RateCity

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The popularity of fixed-rate loans jumped to a four-year high in March as borrowers grew more concerned over where interest rates were heading, new Mortgage Choice figures show.
Fixed-rate loans accounted for 26% of approved home loans written by Mortgage Choice mortgage brokers in March, up from 20.6% in February and well above the 12-month average of 17.7%.
Borrowers chose fixed rate products despite 14 out of 27 lenders represented by Mortgage Choice raising their fixed interest rates over the month.
This was the highest level reached since March 2008, a time when 35% of all new home loans were fixed rates, and is well up on this same period last year when only 10% were fixed rate loans.
<img width="470" src="/images/stories/mcapril4.png">
<a target="_blank" href="/news">Mortgage broker AFG</a> also recorded a spike in demand for fixed-rate loans in March, which soared to a record of 25.4%, just above the previous high of 25.3% recorded in February 2008.
“The record swing towards this loan type indicates borrowers have some concerns over the future direction of home loan interest rates – whether this is the Reserve Bank moving the cash rate or lenders moving their interest rates independently of this benchmark,” says Mortgage Choice spokesperson Belinda Williamson.
“Borrowers’ appetites for fixed-rate loans may have also been spurred on by competitive lender pricing.
“However, it will be interesting to see if fixed-rate loan demand tapers off in coming months, as interest rates on these products have begun edging upwards. When reviewing the rate movements across our 27-strong lender panel, 14 lenders raised their interest rates on fixed rate home loans in March,” she says.
<img width="470" src="/images/stories/mcapril4.jpg">
 
 
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Demand for fixed-rate mortgages jumps to highest level in four years: Mortgage Choice

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Fixed-rate mortgages accounted for a record 25.4% of all loans written by AFG mortgage brokers in March as uncertainty over where interest rates are heading compelled borrowers to fix rates.
According to the latest AFG Mortgage Index, demand for fixed-rate products increased from 23.2% in February and 18.6% in January and has been above 16% since September 2011.
In March 2011, fixed-rate mortgages accounted for just 6.6% of all loans written by AFG mortgage brokers.
Click to enlarge
<a href="/images/stories/afgapril4.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/afgapril4thumb.gif"></a>
The record proportion of fixed-rate loans written in March 2012 was just higher than the 25.3% achieved in February 2008, which followed a period of RBA monetary policy tightening with three 0.25% cash rate increases between August and February 2008 taking the official rate to 7%.
Click to enlarge
<a href="/images/stories/fixedrate1.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/fixedrate1thumb.gif"></a>
“The reason that fixed-rate home loans are at such record highs is quite simply because many borrowers are concerned about the future of interest rates,” says Mark Hewitt, general manager of sales and operations at AFG. 
“This nervousness probably also accounts for the weighting of investors in the property market – there’s a lot of them proportionally because first-home buyers and upgraders are sitting on their hands.” 
The AFG Mortgage Index also shows that for the second month in a row, the average new home loan across Australia was above $400,000 ($404,000 in March). 
However, loan-to-valuation ratios remain steady at just under 68%, “indicating that buyers are not taking on greater levels of debt to fund their purchases”.
AFG says this also reflects the market’s large proportion of investors, who typically use equity in one property to help pay for another. 
“There’s a disconnect between what’s happening in the non-mining economy – which is most of us – and out of cycle rate rises. 
“The best thing the RBA could do to stimulate confidence among buyers and upgraders would be to cut interest rates tomorrow,” says Hewitt. 
The AFG Mortgage Index also shows a clear divide in the drivers of mortgage markets in the Eastern and Western seaboards with investors continue to dominate the NSW market, accounting for two out of five new mortgages and lower levels in Victoria (just under 40%) and Queensland (one third of all loans). 
In WA, a reduction in investor interest has been supplanted by a rise in first-home buyers. 
First-home buyers are more active in WA than any other state, comprising 20% of the mortgage mix, far outstripping their share of NSW (on 13.4%), Victoria (15.2%) and the more affordable Queensland market (16%).
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Fixed-rate mortgage demand surges to record high: AFG

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Some investment commentators would no doubt believe that investors who negatively gear new investment properties and shares at this time must have rocks in their head.
Residential property prices are still falling in most Australian states, and the highly volatile local share market returned a negative 6.8% in the 12 months to February.
And the Reserve Bank’s latest margin lending statistics underline the extreme reluctance of many investors to borrow to invest. Australia’s total margin lending debt, taken to gear shares, plummeted to $15 billion by December last year – the lowest level in eight years.
Just think that the margin lending debt is 64% down on the record $41.6 billion reached in December 2007 on the eve of the GFC.
Unquestionably, it would be a contrarian approach to negatively-gear your new investments. But given the depressed state of the residential property and the local sharemarket, a case could be mounted for going against the herd of investors who are cutting back on both their investment and personal borrowing.
Further, there is another powerful reason why some older, contrarian investors may decide to take bigger risks by negatively gearing their investments.
The standard annual cap on concessional superannuation contributions by members over 50 – mainly salary-sacrificed, compulsory, and deductible contributions by the self-employed – will halve to $25,000 from July. This will diminish valuable potential tax breaks for middle and higher-income earners.
And in turn, more investors are likely to consider gearing property and shares (outside super and through self-managed super funds) as a way to partly address this looming reduction in tax breaks.
The halving of these caps means that super fund members with a marginal tax rate of 46.5% will lose tax savings of up to $7875 a year from 2012-13 while those with a 38.5% marginal rate will lose up to $5875 a year. Much will depend on an investor’s circumstances.
Gear shares
Negatively geared shares provide a relatively straightforward way to help maximise tax and investment opportunities for investors that understand the greater risks involved. In short, gearing magnifies capital gains and losses.
A share is said to be negatively geared when the interest on the investment loan exceeds its dividend income – and the shortfall is deductible against the investor’s other income.
However, a phenomenon in this volatile sharemarket is that the dividend yields of some popular quality shares are markedly higher than the interest payable on investment loans once the value of franking credits are taken into account.
Ross Bird, head equity strategist for investment researcher Morningstar Australia, points out that the average forecast grossed-up yield (which includes franking credits) of the four big banks is 10.1% for 2011-12, rising to 10.8% for 2012-13. (The forecasts are by Morningstar analysts.)
And Morningstar’s forecast grossed-up yield for dividend champion Telstra is a breathtaking 12.4% for both 2011-12 and 2012-13. (The yield was even higher before the recent rise in Telstra’s share price.)
Yet investors should expect to pay a little more than 9% for a variable rate margin loan and about 8.25 to 9% for a fixed-rate loan (<a target="_blank" href="https://www.ratecity.com.au/margin-loans/low-rate">depending on the terms and conditions</a>).
This means that a geared portfolio comprising of, say, the big banks and Telstra won’t be negatively geared. It will be positively geared with the dividends easily outstripping the interest on a margin loan.
However, grossed-up dividends are unlikely to exceed interest on a loan to finance a properly diversified share portfolio – depending, of course, on the level of gearing. Bird gives the example of what Morningstar classifies as its “sustainable portfolio”.
This regularly updated portfolio currently comprises: QBE, Ramsay Health Care, Telstra, Westfield Group, Westpac, Seek, JB Hi-Fi, CSL, Computershare, Commonwealth Property Fund, Cochlear, Bendigo Bank and APA. The portfolio’s forecast grossed-up yield is 7.4% for 2011-12, rising to 7.8% for 2012-13.
Bird describes this portfolio as “almost self-funding” if geared. “The portfolio is designed for moderate capital growth with a healthy income stream,” he explains.
Key points to keep in mind that even if a portfolio is not negatively geared, interest on the investment loan is tax-deductible – and the investor is getting exposure to the sharemarket when shares are still relatively cheap.
Gear property
If you believe that prices are beginning to bottom out in your selected market, now might be a good time to begin thinking about gearing a residential property investment over the next few months or so.
As reported by Property Observer, <a target="_blank" href="https://www.propertyobserver.com.au/residential/residential-investment-property-capital-city-house-rental-yields-from-best-to-worst/2012013153198">RP Data-Rismark calculates that the indicative rental yield for all capital houses was 4.4% in January</a>. This compares to an average variable rate of 6.99% charged by the four big banks for what interest-rate researcher Canstar regards as “outstanding value” <a href="https://www.canstar.com.au/home-loans/compare/variable-rate-investment-home-loan">property investment loans</a>.
Louis Christopher, managing director of SQM Research, believes another rate cut would be necessary to mark the bottom of the Sydney and Melbourne markets where auction clearances are lower than last year’s levels. However, he suspects that the Perth residential market has either bottomed or is near to it.
In all, Christopher says it is “not a bad time” for investors to begin researching for their next residential investment.
Gear through a SMSF
Sydney tax lawyer Robert Richards says gearing an investment through a self-managed super fund (SMSF) is a way to expand a fund’s assets despite the looming cut to the standard concessional contributions cap for members over 50.
Under superannuation law, SMSFs can borrow to invest subject to strict provisions. The geared asset must be held in a special trust until the final payment of the loan, and lenders cannot make a claim against any other fund assets in the event of a default.
There is plenty to consider. On one side, an SMSF-held asset will produce much lower negative-gearing tax benefits than if the asset was in the name of a top marginal taxpayer.
But once the investment’s income exceeds the interest debt, the rental income is taxed at a maximum of 15%. And the eventual capital gains are taxed at just 10% (if the asset is not sold within 12 months of purchase) or CGT-free if sold when the asset is backing the payment of a superannuation pension.
Finally, no investor should gear an investment without being aware of the risks. As Richards says: “While gearing increases the opportunity for greater capital gains, it also exposes you to greater capital losses".
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
 
 
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Is it time to negatively gear property or shares?

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Mortgage broking groups Mortgage Choice and Loan Market Group are calling on the Reserve Bank to cut interest rates next month to help encourage more first-home buyers back into the market. 
Mortgage Choice CEO Michael Russell says a rate cut is needed to stimulate the non-mining sector. 
“We’re already witnessing the extremes of a two-speed economy, evidenced in slowing demand for property and a struggling retail sector,” Russell told Property Observer. 
Russell also believes that if the government remains committed to the first-home owners’ grant, then it should look to “make it more equitable by indexing it to the median house price and backdating it to its first anniversary, July 2001”.
However, Bendigo and Adelaide Bank chairman Robert Johanson is opposed to the government intervening in the housing market and calls the grants <a href="https://www.propertyobserver.com.au/residential/federal-government-must-decide-if-housing-industry-warrants-a-handout-in-may-budget/2012032053937">“bad policy”, which unnaturally drive up the cost of housing.</a>
"The government were just giving people money to get into new houses, which transferred the value to the sellers. It just puts costs up," Johanson says.
"I think it's a waste and a distraction," he says.
BIS Shrapnel senior manager Angie Zigomanis says first-home buyer incentives bring forward demand and consequently result in a drop off further on – as has been the case in Victoria. Loan Market recorded a 20% drop in the number enquiries from first-home buyers nationwide during March. 
The fall was greater in New South Wales and Victoria with activity in those states down 25% and 23% respectively in March compared to February. Only Queensland bucked the trend with a 3% rise. 
Percentage change in first-home buyer enquiry March 2012 compared to February 2012 
<table cellpadding="0" cellspacing="0" border="1" style="width: 300px;"><tbody>
<tr>
<td valign="top" width="308">
National
</td>
<td valign="top" width="308">
-20%
</td>
</tr>
<tr>
<td valign="top" width="308">
NSW
</td>
<td valign="top" width="308">
-25%
</td>
</tr>
<tr>
<td valign="top" width="308">
VIC
</td>
<td valign="top" width="308">
-23%
</td>
</tr>
<tr>
<td valign="top" width="308">
QLD
</td>
<td valign="top" width="308">
+3%
</td>
</tr>
<tr>
<td valign="top" width="308">
SA
</td>
<td valign="top" width="308">
-8%
</td>
</tr>
<tr>
<td valign="top" width="308">
WA
</td>
<td valign="top" width="308">
-12%
</td>
</tr>
<tr>
<td valign="top" width="308">
TAS
</td>
<td valign="top" width="308">
unchanged
</td>
</tr>
<tr>
<td valign="top" width="308">
NT
</td>
<td valign="top" width="308">
unchanged
</td>
</tr>
</tbody></table>
Source: Loan Market Group
 
Loan Market corporate spokesman Paul Smith says the decision by the RBA to leave rates on hold and the major banks lifting their variable rates in February has deterred first-time buyers. 
“There had been a revival in the first-home buyer sector late last year and early this year on the back of the RBA twice cutting the cash rate in November and December, 2011,” he says. 
“But the combination of official rates staying on hold and the banks raising rates independently of the RBA has caused some confusion in the marketplace as some buyers are unsure exactly where home loan interest rates are headed.”
Smith says many sectors of the economy would welcome an interest rate cut next week. 
A Loan Market consumer survey has found more than 70% of respondents expect the RBA to cut the official rate in March. 
“Although some progress has been made in the European debt crisis, and many economic indicators are within target, there remain stalled sectors that would benefit from an April rate cut by the RBA,” Smith says. 
“The RBA has noted that the banks no longer face the cost of funding pressures that caused them to lift their home loan rates independently of the central bank. 
“So if we get a cut in the cash rate on Tuesday consumers will be hoping their lenders follow suit and pass on the reduction in full,” says Smith.
 
 
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Mortgage brokers call for rate cut and first-home owners’ grant changes

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Recently Gina Rinehart's problems with her children have been front page news across the nation.
There have been a few lessons from this saga that we can all learn from.
The main points are summarised below:
You may recall that her family trust had a vesting date that triggered a capital gains tax of $100 million per beneficiary. Most if not all trust deeds have an 80-year vesting date, which means that the trust deed ceases to exist at this point and all assets than pass to the beneficiaries, triggering stamp duties and capital gains tax.
The problem with this is where normally a person sells a property to than have the cash to pay the tax, when a trust "vests" the beneficiaries end up with a huge tax liability but no cash to pay for it.
Hence he or she is forced to sell the property to pay the tax – but what if he or she wants to hold onto it?
Then the beneficiary would need to find cash elsewhere to fund the tax. Or he or she could borrow from the bank (assuming he or she can secure a loan) with the property as security.
In either case it's not an ideal situation to be in.
You may say that 80 years is a long time and you won't be around to worry about it, but you will leave a huge problem for your children and grandchildren.
In Gina's situation this could potentially send the children into bankruptcy as they will have a $100 million tax bill each (as reported) without either the asset or the cash to pay the tax. Not a good position to be in.
Lesson 1:
Make sure that your trust deed does not have a vesting date. The Chan &amp; Naylor "Property Investors Trust" deed is one such trust deed that does not have a vesting date.
It also has an approved product ruling from the ATO and allows the negative gearing to be claimed against your salary and protects the property from litigation and at the same time keeps it within the family bloodline and away from the childrens’ in-laws in case of a marriage breakup.
Lesson 2:
Make sure you retain control of the money by remaining as trustee. The trustee has full control over the assets. You may recall Gina's children attempted to remove her as trustee. With control you can still distribute funds to them but at your discretion.
Lesson 3: 
Make sure you retain the position of appointor. The appointor has the power to remove and appoint a new trustee. The appointor is the most powerful person in the trust. In most husband and wife situations, they hold the appointor position jointly.
Lesson 4:
With marriage break-ups at an all-time high (above 30% and higher because many unwed people live together and their break-ups are not recorded as marriage break-ups).
Do not pass any assets across to the children until after one partner dies. You can still lend children money but register a mortgage or caveat over the property or assets. You can call those funds back in case their marriage breaks up.
Lesson 5:
Property that you hold can still be provided as security for a bank to lend money to your children to purchase their homes with. The bank will hold their home as the main security (80%) and should something go wrong than you are only exposed to 20% being the top-up security held on your property. You can safeguard this with a second mortgage over their property.
Lesson 6:
Never hold investment properties in your own name but in a property investors trust (PIT), because at your discretion you can still distribute rental income to them from the PIT. You can still put the property up as security for a loan from the bank for them and when you are ready to pass control and ownership to them the title on the property can be changed (i.e., trustee can be changed) with no stamp duty or capital gains tax.
If you held the property in your own name and attempted to transfer the title to your children (before your death) there will be stamp duty and capital gains tax to pay.
The problems experienced by Gina Rinehart and her children are not problems that you only find in the rich.  They are experienced by everyday people who have assets such as property. The only difference is that problems of the rich get published in newspapers.
Most importantly, make sure you get good advice before you do anything. It's very expensive to try and fix something after the event.
As my mother would say, "An ounce of prevention is better than a pound of cure".
Ed Chan is a founding partner of <a target="_blank" href="https://www.chan-naylor.com.au/">Chan and Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
 
 
 
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echan-hSGJw4wwC5

Six lessons from Gina Rinehart and the importance of using the right kind of trusts

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Aussie Home Loans founder John Symond has warned that borrowers will burst like tomatoes unless the RBA cuts rates.
“People are like tomatoes that have been squeezed too much. At some stage they'll burst. They've had a gutful,” Symond said on Ross Greenwood’s Money News show on 2GB.
Speaking also to David Koch on Sunrise, Symond joined the likes of Yellow Brick Road’s Mark Bouris by heaping more pressure on the Reserve Bank to cut interest rates and inject some confidence into the housing market and economy in general.
“The government and they RBA are a bit out of touch by not accepting that parts of the economy, especially small businesses, is doing it really tough at the moment,” Symond said.
“As well as the Australian economy has performed relative to other economies, we could easily get into the situation where the economy could stall,” warned Symond.
“We need an injection of good news and an injection of confidence – the best way to do that is to start dropping interest rates.”
Symond said the basic principles of supply and demand suggested the housing market was unlikely to recover anytime soon, pointing out that there were currently more than 300,000 houses listed for sale on the market, the highest in Australia’s history.
“We have an oversupply of sellers versus buyers, which suggests the housing market will remain soft,” he said.
Furthermore, he also expressed concern at the increase in self-employed borrowers facing mortgage difficulties as noted in the increase in low-doc loan arrears (loans principally used by those self-employed) in the recent Fitch Dinkum Index for the December 2011 quarter.
According to Fitch, the percentage of low-doc borrowers more than 30 days in arrears increased to 6.62% in the December quarter, up from the 6.26% rate in the September quarter.
“Mortgage arrears are a worry because they are trending in the wrong direction,” said Symond.
“Houses are taking twice as long to sell, and if you’re in trouble it’s going to take you twice as long to sell your property – if you can in fact sell it.”
Symond’s criticism of the RBA follows an attack in early March from Mark Bouris over the central bank’s decision to leave rates on hold in February (following which the major banks lifted their standard variable mortgage rates).
In a series of tweets Bouris said the central bank needed to take into account that Australia had a multi-speed economy when determining interest rate settings.
“What's the basis of the RBA decision? They keep rates on hold because everything looks OK but you just need to scratch beneath the surface,” tweeted Bouris.
 
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