<p>Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.</p>

<p>Developer Big Projects brought in the renowned Sydney-based design studio YSG to craft the interiors for The Frederick, Big Projects' new Mermaid Beach project and YSG's first move into the multi-residential development space.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for Big Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of Big Projects.</p>

<p>“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.</p>

<p>"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”</p>

<p data-end="236" data-start="64">A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Architecture, with landscape design by LDG.</p>

<p data-end="951" data-start="762">SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its design flair/ appeal,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. Big Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Joel Robinson

Big Projects taps Sydney’s YSG for first multi-residential project at The Frederick Mermaid Beach

<p>Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;</p>

<p>Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;</p>

<p>The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;</p>

<p>The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;</p>

<p>Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" /></p>

<p>Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;</p>

<p>Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;</p>

<p>The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.</p>

<p>“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."</p>

<p>Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

<p>Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.</p>

<p>The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.</p>

<p>Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366285]</p>

<p>The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.</p>

<p>Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.</p>

<p>All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366277]</p>

<p>Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.</p>

<p>The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.</p>

<p>[smartcode_project_cta:default project_id=150128]</p>


Construction to commence at luxury Glen Iris townhome project, Orchard Mews

<p data-end="150" data-start="66">A rare new apartment development has been proposed on the fringe of St Ives Village.</p>

<p data-end="370" data-start="152">Developer Newquest Property has lodged plans for a low-rise apartment project designed by well-regarded architecture firm Warren &amp; Mahoney, which is best known for its work in the multi-residential sector in Melbourne.</p>

<p data-end="370" data-start="152">The building, proposed for a 1,916 sqm site on <a href="https://www.apartments.com.au/new-apartments/st-ives-residences-3-5-memorial-avenue-nsw-2075">Memorial Avenue</a> opposite St Ives Village Green, has been designed to blend into the surrounding natural environment.</p>

<p data-end="370" data-start="152"><img alt="St Ives" data-entity-type="file" data-entity-uuid="5c1c7437-2fba-4345-a6d7-05321714ad3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.28.46%E2%80%AFPM.png?VersionId=KrYyMaJvNqR7vbx0xbB3Ef8sJ6FuHpmn" /></p>

<p data-end="745" data-start="537">“Drawing inspiration from the pale trunks and flowering canopies of the scribbly gums and blue gums prevalent in the area, a considered material palette was developed,” the architectural design report states.</p>

<p data-end="912" data-start="747">“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”</p>

<p data-end="1185" data-start="914">Of the 33 apartments proposed, 21 will be three-bedroom residences. The remaining mix includes nine two-bedroom apartments, one one-bedroom apartment and two four-bedroom residences. The development will be supported by 62 car parking spaces and 33 secure bicycle spaces.</p>

<p data-end="1270" data-start="1187">The proposal would replace two single-storey brick buildings currently on the site.</p>

<p data-end="1270" data-start="1187"><img alt="St Ives" data-entity-type="file" data-entity-uuid="21422eaf-09a9-4439-9278-b9bd9daf22a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.38.10%E2%80%AFPM.png?VersionId=v.fXSgcUcEscvOZzqcjG5nk3gVqk_Amt" /></p>

<p data-end="1467" data-start="1272">St Ives remains a relatively untapped market for new apartment development. North Shore developer WINIM has a number of projects in the area, while INCA is nearing completion of Ellis Residences.</p>

<p data-end="1635" data-start="1469">More recently, Traders In Purple has lodged plans for one of the denser projects proposed in the suburb, a 75-apartment development on a 5,900 sqm site on Cowan Road.</p>

<p data-end="1635" data-start="1469">NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: NewQuest Property proposes new St Ives apartment development

<p><a href="https://www.apartments.com.au/developers/centa-property-group">Centa Property Group</a> has achieved two major milestones at its <a href="https://www.apartments.com.au/new-apartments/bilinga-house-107-golden-four-drive-bilinga-qld-4225">Bilinga House</a> apartment development in the sought-after southern Gold Coast.</p>

<p>They've almost sold 50 per cent of the Golden Four Drive building, while at the same time announcing the commencement of construction through reputable builder Greyburn Construction.</p>

<p>The boutique 10-storey building, with 47 two- and three-bedroom apartments, now has a mid-to-late 2028 completion date.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5333]</p>

<p>The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed project is positioned just 200 metres from Bilinga Beach and brings a relatively rare apartment offering to a market that has seen limited new supply in recent years.</p>

<p>Residences have been designed to maximise natural light and ventilation, with open-plan interiors, generous glazing, and material palettes that reflect the surrounding coastal landscape.</p>

<p>Interiors incorporate engineered timber flooring, stone benchtops, and custom joinery, with layouts designed to adapt to both permanent living and lock-and-leave use.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Rothelowman Senior Project Leader Matthew Tencate said the design approach centres on liveability and community.</p>

<p>“Providing curated on-site amenities and communal spaces for residents that facilitate a sense of community, liveability, and wellness,” Tencate said.</p>

<p>Residents will have access to a suite of private amenities including a pool, gym, sauna, and communal alfresco areas, alongside practical features such as surfboard storage and bicycle facilities.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Centa Property Group Director Jason Yuen said the project has been designed to appeal to a range of buyers seeking flexibility in how they use their property.</p>

<p>“Bilinga House is designed for those who want the best of both worlds – a modern beachside escape with the flexibility to generate income when you're not there,” Yuen said.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5338]</p>

<p>Bilinga remains one of the quieter pockets of the Gold Coast, sitting between the more established hubs of Coolangatta and Palm Beach. Its appeal has strengthened in recent years, supported by proximity to the Gold Coast Airport and the Oceanway coastal path.</p>

<p>[smartcode_project_cta:default project_id=150037]</p>


Bilinga House apartments snapped up as Greyburn commences construction

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
<p class="post-title entry-title">EXPERT OBSERVER </p>
<div>The Crestmont P/E is still levitating 119 per cent above its arithmetic mean, and remains close to the highest level in history at 33. </div>
<div> </div>
<div>During the tech bubble/bust the Crestmont P/E rose above 25 (denoting 'irrational exuberance') and momentarily touched the current record high of 33.7 before promptly crashing.</div>
<div> </div>
<div>In 1929 ahead of the Wall Street Crash and the Great Depression the Crestmont P/E peaked at 26.4.</div>
<div> </div>
<div>And before the subprime financial crisis it peaked at 24.7.</div>
<div> </div>
<div><em>Here's the chart update until today:</em></div>
<div><em> </em></div>
<div class="separator"><img src="https://1.bp.blogspot.com/-3OpG8WGx6R8/XwAw2raZRTI/AAAAAAAA2ss/6lECqCwqzYIqVsn2irGMCfU5I2iE47ZcwCNcBGAsYHQ/s640/CRESTMONT.jpg" width="640" height="464" data-original-height="661" data-original-width="910"></div>
<div><span style="text-decoration: underline;"><em>Source: Advisor Perspectives</em></span></div>
<div><span style="text-decoration: underline;"><em> </em></span></div>
<div>Earnings reports will be interesting to follow this year given that there's been a severe disruption to global economic activity in 2020. </div>
<div> </div>
<div>Back in Australia earnings expectations have been revised dramatically lower, for five sectors in particular:<br><br>
</div>
<div class="separator"><img src="https://1.bp.blogspot.com/-hA2yfrVmGiQ/XwAzRldfhYI/AAAAAAAA2tA/L69X-IeDMckAKMoKCDByQfFqgkdgotd4wCNcBGAsYHQ/s640/MS.jpg" width="572" height="640" data-original-height="1395" data-original-width="1248"></div>
<div>
<span style="text-decoration: underline;"><em><br></em></span><span style="text-decoration: underline;"><em>Source: Morgan Stanley</em></span>
</div>
<div> </div>
<div>Markets are forward-looking of course, but this puts PE valuations for the ASX 200 at extremely lofty levels. </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-7P8zzlWlhkU/XwAzb7cvj8I/AAAAAAAA2tE/jVLQ1ildzGk5tgTdxfgwdp5Qu4w8fG22gCNcBGAsYHQ/s640/MS2.jpg" width="640" height="400" data-original-height="883" data-original-width="1412"></div>
<div><span style="text-decoration: underline;"><em>Source: Morgan Stanley</em></span></div>
<p id="post-body-7807194319875705440" class="post-body entry-content">This would not be a good time to disappoint markets with an earnings miss, you'd think.</p>
<p class="post-body entry-content"><strong>Pete Wargent</strong><span> is the co-founder of AllenWargent property buyers and a best-selling author and blogger</span><strong> </strong></p>
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pwargent-M4siyDbqQY

Where are markets heading with nosebleed valuations: Pete Wargent

<html><body>
<p>EXPERT OBSERVER</p>
<p>The key message for property investors right now is that there are many growth markets across Australia.</p>
<p>There’s a tendency in mainstream media to extrapolate the situations in Sydney and Melbourne to the whole nation. If the big cities are in decline, then Australian real estate is in decline, according to news media.</p>
<p>This is seldom true – and it’s certainly not the case right now. Some of our smaller capital cities are pumping strongly and, in particular, regional Australia has many growth markets.</p>
<p>Last week I made this comment: “Regional Queensland has achieved something that few jurisdictions across Australia have managed: it has maintained its previous high levels of well-performing markets in defiance of Covid-19.”</p>
<p>I wrote that I rated the Sunshine Coast one of the strongest economic and real estate stories in the nation and that it continues to produce solid results in its property markets.</p>
<p>The anecdotal evidence from people at the coalface of the Sunshine Coast property industry is that sales are happening, vacancies remain low and there’s no evidence of values falling.</p>
<p>The latest data on prices and vacancy rates confirms that – with evidence of notable growth pockets.</p>
<p>Most of the postcodes across the Sunshine Coast region, including Noosa (which is a separate local government area), have vacancy rates between 1% and 2%. While some of the capital city CBDs and tourism-dominated locations like Surfers Paradise have had big blowouts in their vacancies, the Sunshine Coast has resisted this trend.</p>
<p>Although tourism is an important industry to the Sunshine Coast, its economy is insulated by the ongoing massive spend on infrastructure, including the evolving medical precinct, the new CBD now under construction, the billion-dollar highway improvements, the upgrade of the local airport to international status and the subsea internet cable link to Asia – among other projects.</p>
<p>And this is bolstering the local property market.</p>
<p>The top end of the market in particular has been boosted, thanks in part of the influx of well-paid medical specialists working in the new medical precinct, based around the $2 billion university hospital.</p>
<p>The two most expensive suburbs in the region, Sunshine Beach and Minyama, have both experienced notable uplift in prices recently. The median house price for Sunshine Beach, just outside Noosa, has risen 16% in the latest quarter and 27% in annual terms, to reach $1.8 million. Minyama is up 7% in the most recent quarter and 23% annually – and typical houses are now above $1.1 million.</p>
<p>The median house price for Noosa Heads has risen 8% in the past year, including 1.4% in the most recent quarter.</p>
<p>Other locations throughout the Sunshine Coast region, including Mooloolaba, Maroochydore, Coolum and Pelican Waters, have recorded more moderate growth, but nevertheless have achieved price uplift in both the past 12 months and the most recent quarter – and a time when the big cities are feeling the negative impacts of Covid-19.</p>
<p>Keep that in mind the next time you hear one of our chattering economists telling us that “Australian property prices” are falling.</p>
<p>The Sunshine Coast is a standout example among many thriving regional markets.</p>
<p>Terry Ryder is the founder of hotspotting.com.au<br> ryder@hotspotting.com.au<br>twitter.com/hotspotting</p>
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terryryder-YECXbqmri2

Sunshine Coast remains a standout market during COVID-19: Hotspotting's Terry Ryder

<html><body>
<div>
<span>Contrary to what you might think, and despite recent upward pressures, bank funding costs fell in 2015. </span><br><span><br></span><span>The Reserve Bank of Australia (RBA) took a detailed look at this in its ever-enlightening Bulletin this week.</span><br><span><br></span><span>The funding composition of Aussie banks is made up of liabilities, comprised predominantly of domestic deposits which today make up a greater share of total funding than was the case prior to the financial crisis. </span>
</div>
<div><span> </span></div>
<div><span>The remainder of banks' funding composition comprises short term debt, long term debt, equity, plus now a small amount of securitisation. </span></div>
<div><span> </span></div>
<div><span>Domestic deposits, which are a more stable form of funding, made up close to a 60 per cent share of the total by 2014, but this allocation has declined a little lately as the cost of wholesale debt became cheaper, and as banks raised equity in response to forthcoming changes to prudential regulation. </span></div>
<div><span> </span></div>
<div><span>Here's that composition in a chart provided by the RBA:</span></div>
<div><span> </span></div>
<div><a href="/images/2016/03/21/f2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div class="x_separator"><img src="/images/2016/03/21/f2.jpg" alt=""></div>
<div><span> </span></div>
<div>
<strong><span style="text-decoration: underline;"><span>Debt funding costs</span></span></strong><br><span><br></span><span>While the official cash rate acts as an important "anchor" for bank funding costs, changes in the returns or compensation demanded by investors to hold debt can also influence banks' funding costs appreciably.</span>
</div>
<div><span> </span></div>
<div><span>Debt funding costs for major banks fell materially by 70 basis points ("bps") in 2015, in part driven by 25bps interest rate cuts delivered in February and May respectively. </span></div>
<div><span> </span></div>
<div>
<span>Most of the decline in funding costs relative to the cash rate took place in the first half of the last calendar year, with costs reasonably stable in the second half of 2015.</span><br><span><br></span><span>From yonder Bulletin, a chart of said debt funding costs once more, depicting the large decline in debt funding costs since 2008. </span>
</div>
<div><span> </span></div>
<div class="x_separator"><a href="/images/2016/03/21/f3.jpg" target="_blank">Click to enlarge</a></div>
<div class="x_separator"><img src="/images/2016/03/21/f3.jpg" alt=""></div>
<div><span> </span></div>
<div><span>Notably markets are pricing a relatively higher weighted average debt funding cost for the non-major Aussie banks, a dynamic which did not exist so clearly before the financial crisis.</span></div>
<div><span> </span></div>
<div>
<span><strong><span style="text-decoration: underline;">Wholesale funding</span></strong></span><br><span><span><br></span><span>In respect of wholesale funding, the volume of bank bond issuance in the last calendar year was pretty much in line with the year which preceded it, though banks issued a bit less in covered bonds and residential mortgage-backed securities (RMBS). </span></span>
</div>
<div><span> </span></div>
<div><span><span>In terms of the actual mix of wholesale funding, that didn't change all that much either through last year, though a</span> bit of shift from offshore long term to short term debt did see a slight reduction in funding costs for the majors, according to the RBA:</span></div>
<div><span> </span></div>
<div><span><strong>"Through 2015 declines in wholesale funding rates and the rolling over of existing higher-rate funding lowered the funding costs of major banks by 8 basis points more than the reductions in the cash rate".</strong></span></div>
<div><span> </span></div>
<div>
<span>Overall, then, the cost to banks of issuing new wholesale debt fell significantly at the beginning of 2015, and this lower level was sustained through most of the year. </span><br><span><br></span><span>This gradually flowed through to outstanding wholesale funding costs as the new cheaper debt replaced higher cost funding reaching maturity.</span>
</div>
<div><span> </span></div>
<div><span>Towards the end of 2015, the cost of issuing <strong><span style="text-decoration: underline;">new</span></strong> debt increased, which is angle that all the "bank funding costs are soaring" articles are coming from, although seen in context, funding costs remain a good deal lower than they have been over the years. </span></div>
<div><span> </span></div>
<div><span>Summarily, yields on new short term debt increased a bit to be higher than those on outstanding short term debt, but the cost of new long term debt was a little below the cost of corresponding outstanding debt.</span></div>
<p><a href="/images/2016/03/21/Funding.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/21/Funding.jpg" alt=""></p>
<div><span>Although equity tends to be a relatively small share of banks’ aggregate balance sheets (at about 6 to 7 per cent), equity is generally speaking more expensive than debt, thus relatively small shifts in equity funding can have proportionately large effects on total funding costs.</span></div>
<div><span> </span></div>
<div><span>The major banks raised a significant amount of equity in 2015, in anticipation of upcoming changes to prudential regulation, about $21 billion worth in total, according to the RBA.</span></div>
<div><span> </span></div>
<div><span><strong><span style="text-decoration: underline;">Lending rates</span></strong></span></div>
<div><span> </span></div>
<div><span>As for mortgage rates? Housing rates generally declined in line with the cash rate in the first half of last year, with the average outstanding interest rate on mortgages falling by about 50bps.</span></div>
<div><span> </span></div>
<div><span>As has been well covered in the financial media, in the second half of the year banks tweaked their lending rates such that the average outstanding housing interest rate for investor loans was only moderately lower over 2015, while rates for owner-occupiers declined by about 30bps. over the year. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/03/21/F4.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/03/21/F4.jpg" alt=""></span></div>
<div><span> </span></div>
<div><span> </span></div>
<div>
<span>The implied spread of major banks - that being the difference between average lending rates and debt funding costs - increased by around 20bps over 2015, this </span><span>change driven by a combination of the decline in average funding costs relative to the cash rate and an increase in the average lending rate. </span>
</div>
<div><span> </span></div>
<div>
<span>However, the Reserve Bank noted that lending rates and debt funding costs do tend to move in line with each other in the longer run.</span><br><span><span><br></span><span><strong><span style="text-decoration: underline;">The wrap</span></strong></span></span><br><span><span><br></span>Despite a moderate increase in debt funding costs recently and a range of equity raisings, funding costs are still lower than they were.</span><br><span><br></span><span>With global interest rates so low, futures markets still expect the cash rate in Australia to be cut again by November this year, although banks may elect to retain a portion of any 25bps cut delivered in order to shore up their balance sheets further. </span><br><span><br></span><span>Alternatively banks may looking at increasing mortgage rates a little via out of cycle hikes.</span>
</div>
<div><span> </span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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Bank funding costs declined in 2015: Pete Wargent

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<p>The Real Estate Institute of Western Australia has urged the state government not to consider ending the universal application of the first-home owners' grant in its upcoming midyear budget review.</p>
<p>Currently, the state distributes the $7,000 grant to first-home buyers irrespective of whether they are purchasing an established property or building a new one.</p>
<p>Some premiers in the eastern states have changed the rules for eligibility and will now only provide funds to first-home buyers who build a home or purchase a newly built one.</p>
<p>The New South Wales and Queensland governments recently scrapped the first-home buyers' grant for people who buy a previously lived-in property as a means to stimulate their flagging construction industry.</p>
<p>However, that stimulus is not needed in WA, especially when 75% of first-home buyers in this state purchase a second-hand home, not a new one.</p>
<p>WA is presently experiencing the strongest non-stimulatory growth in first home buyer activity in both the established and new housing sectors since FHOG was introduced in July 2000.</p>
<p>Now is not the time to distort the healthy recovery in the WA housing market.</p>
<p>First home buyer activity  is currently very strong in WA, constituting up to 30 per cent of all turnover around the state.</p>
<p>We are also starting to see a healthy recovery in new building activity, which has partly been led by first-home buyers now representing 25% of this new activity.</p>
<p>Meddling with the application of the first-home owners' grant now would greatly distort this healthy sector of the market and disadvantage three-quarters of people trying to own their first homes.</p>
<p>The Commonwealth introduced this grant with the purpose of it having universal application to all first-home buyers. This universality must continue in WA to keep this section of the market stable and to ensure fairness for all new buyers.</p>
<p>REIWA is also encouraging the state government to maintain its transfer duty exemption for first home buyers in the forthcoming midyear budget review.</p>
<p><em><strong>David Airey</strong> is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx">reiwa.com</a>.</em> </p>
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The WA government should leave the first-home owners' grant as it is: David Airey

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<p>There are 23 suburbs in Melbourne where first-home buyers can purchase a one-bedroom apartment and pay equal or less than the average estimated first-home buyer mortgage repayment in Victoria of $414 per week.</p>
<p>The suburbs can be found in an interactive heat map showing weekly mortgage repayment price bands across Melbourne suburbs compiled by the Real Estate Institute of Victoria (REIV) as part of its new <a target="_blank" href="https://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide">first-home buyer guide.</a></p>
<p>The $414 per week median mortgage repayment is based on the average first-home buyer loan size of approximately $286,600, a standard variable interest rate of 6.40%, receipt of the $7,000 First Home Owners Grant, a loan term of 30 years, a 10% deposit, and benchmark Lenders Mortgage Insurance (LMI) and conveyance fees.</p>
<p>First-home buyers may be surprised to learn that the list includes inner city, café-lined suburbs like Carlton and Moonee Ponds, the bayside suburb of Williamstown and up-and-coming suburbs like Preston and Reservoir.</p>
<p>The full list starting from the cheapest is:</p>
<ol>
<li>
<a href="/news">Noble Park</a>, $202 per week, median price of $155,000</li>
<li>
<a href="/news">Albion </a>- $232 per week, median price $177,000</li>
<li>
<a href="/news">Box Hill</a> - $257 per week, median price of $194,750</li>
<li>
<a href="/news">Carlton </a>- $257 per week, median price of $195,000</li>
<li>
<a href="/news">Frankston </a>- $260 per week, median price of $197,500</li>
<li>
<a href="/news">Footscray </a>- $325 per week, median price of $245,000</li>
<li>
<a href="/news">Ormond</a> - $339 per week, median price of $255,000</li>
<li>
<a href="/news">West Footscray</a> - $346 per week, median price of $260,250</li>
<li>
<a href="/news">Epping </a>- $347 per week, median price of $261,000</li>
<li>
<a href="/news">Brunswick West </a>- $365 per week, median price of $274,000</li>
<li>
<a href="/news">Moonee Ponds</a> - $366 per week, median of $275,000</li>
<li>
<a href="/news">Mentone </a>- $370 per week, median price of $277,750</li>
<li>
<a href="/news">Reservoir </a>- $380 per week, median price of $285,000</li>
<li>
<a href="/news">Preston </a>- $381 per week, median price of $285,500</li>
<li>
<a href="/news">Williamstown </a>- $387 per week, median price of $290,000</li>
<li>
<a href="/news">Coburg </a>- $388 per week, median price of $291,000</li>
<li>
<a href="/news">Murrumbeena </a>- $391 per week, median price of $293,000</li>
<li>
<a href="/news">Flemington </a>- $392 per week, median price of $294,000</li>
<li>
<a href="/news">Bundoora </a>- $394 per week, median price of $294,000</li>
<li>
<a target="_blank" href="/news">Glen Huntly</a> - $401 per week, median price of $300,500</li>
<li>
<a target="_blank" href="/news">Thornbury</a> - $401 per week, median price of $300,000</li>
<li>
<a target="_blank" href="/news">Essendon </a>- $414 per week, median price of $310,000</li>
<li>
<a target="_blank" href="/news">Carnegie </a>- $414 per week, median price of $310,000</li>
</ol>
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From Noble Park to Essendon: 23 Melbourne suburbs with one-bedroom apartments priced below the first-home buyer mortgage median

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<p>With personal finances left looking fragile after the annual Christmas spending splurge, I thought it best to offer a list of simple strategies that can help Australians improve their financial fitness in 2013.<span style="font-size: 0.8em;"> </span></p>
<p>If done properly, this includes assessing all aspects of personal finances, including strategies to boost retirement investments, such as including property and super, savings, a review of insurance policies, staying ahead of tax obligations and making an effort to improve financial literacy as more and more Australians take more control of planning their financial future.</p>
<p><strong>1. Maximise the potential of any investment properties. </strong>Renovations to an existing property can reap huge rewards in the long run, with even the addition of air-conditioning dramatically increasing a property’s yield in terms of the amount you are able to receive in rent. Also, holding an investment property within a self-managed super fund trust is one of the most tax-efficient ways of managing these types of assets.</p>
<p><strong>2. Ensure your property agents cover all property investment expenses (excluding interest).</strong> After all, you are paying them. This will greatly reduce your accountant’s costs and reduce your administration, as the agent will give you monthly and annual statements showing all income and expenses and will attach relevant invoices to each statement for your compliance needs.</p>
<p><strong>3. Ensure loans are properly structured.</strong> Interest rates are near all-time lows, so while this is not great for savers, it is terrific for borrowers, who should ensure that their loans are properly structured and rates are in line with the competitive market rate. Many borrowers have not been given access to what is called the professional discount, although most are eligible. This potential  0.7% rate decrease applied to pay down a loan reduces the average loan by over $2,300 per year which equates to an overall saving of over $104,000 and reduces the term by nearly 6.5 years. The use of honeymoon credit card rates can also be very beneficial to enhance the faster payment of credit card debt while not increasing actual cash requirements.</p>
<p><strong>4. Be aware of tax deductions. </strong>The use of a specialist property accountant will be able to show you all the legal tax deductions available to you, including the proper set-up of loans and the use of trusts for the astute property investor. Many investors forget to claim depreciation, which is a non-cash expense relating to the wear and tear of the building and fixtures and fittings. When doing a renovation, you should also prepare a scrapping schedule, which puts a value on everything you rip out and throw away. The taxman will pay you for your junk via an expense in the year of renovation and then allow depreciation on the new work. Remember depreciation and scrapping schedules must be prepared by a qualified quantity surveyor.</p>
<p><strong>5. Ensure your will and enduring power of attorney are up to date. </strong>We have all heard of the horror stories of the wrong people getting your assets or, even worse, the government. Wills are a way to protect family wealth, and the common will, where assets are bequeathed to your children or surviving spouse, can have dire consequences if the receiver becomes bankrupt, has a family dispute, or has other medical issues. For many, a better alternative is required and therefore a different type of will is needed. This is normally referred to as a testamentary will. In this scenario, your will makes provision for your assets (such as property) to go to a trust set up after your death and you have your loved ones in control of the trust. This protects the assets from divorce, bankruptcy and taxes minors at adult tax rates and not the dreaded 66% on income generated from a normal death distribution. An enduring power of attorney (EPOA) is also recommended as the will does not take effect until death. If in a coma, access to bank accounts or the ability to sell assets for your medical treatment may be delayed or stopped without the EPOA. Remember your will only looks after what you own in your name and does not cover your superannuation or trust assets. Other documentation is required for these.</p>
<p><strong>6. Consolidate super. </strong>Many of us have held a number of super funds over our working lives. These various superannuation balances can be quickly identified by visiting <a href="https://www.findmysuper.com.au/">www.findmysuper.com.au</a>, then consolidating these funds within one appropriate fund will ensure that you have the maximum amount of capital working, while cutting out multiple administrative fees, reducing costs and increasing retirement benefits.</p>
<p><strong>7. Have your life insurance in your superannuation. </strong>Life insurance in this day and age is a necessity. However, it must be purchased with after-tax dollars when held in your name, yet if life insurance is held in super, payment is tax-deductible, resulting in large savings. Payments can be funded either out of your super guarantee (9%), improving your weekly cashflow, or as an additional salary sacrifice, which is tax deductible.</p>
<p><strong>8. Consider moving your super into pension stage. </strong>The trigger for this is your age, not whether you are working. It is understandable that for any number of reasons many of us are happy or need to continue working slightly longer than traditionally we would have in previous times. Many super trusts allow the option to trigger retirement in super while you are still working (a simple deed amendment will allow this if not currently available). The benefit of this strategy is that your super fund will no longer be taxed on income or capital gains from your pension balances. You will need to draw an annual pension, but this can be re-contributed if not needed. In your hands, the pension will not be taxed if you are over 60 and taxed at your marginal tax rates less 15% if you are between 55 and 60, greatly increasing cashflow.</p>
<p><strong>9. Ensure tax returns are up to date. </strong>The ATO is increasingly clamping down on late tax returns, but tax office penalties should not be the only incentive to avoiding tardiness. Delaying your income tax returns can add additional costs and deprive you of funds if a refund is expected. Even if you are required to pay additional tax, it is recommended to start early and withhold lodgment until your due date. Working through a registered tax agent can allow you up until May 15 in the next year for lodgment.</p>
<p><strong>10. Savings can be made by reviewing and consolidating existing insurance policies. </strong>Many Australians do not consider changing their existing insurance policies for a better deal, normally because they are concerned that they will need to undergo a new medical examination, which may impact costs or benefits of that policy. However, if you have undergone a medical in the past five years, in most cases there is no requirement to undergo another if there is no loading applicable and the same amounts are carried to a new insurer who in turn may be able to offer you a more competitive deal. There could also be benefits in having different policies with the one provider so as to source discounts.</p>
<p><strong>11. Invest in your own financial education and literacy.</strong> There is an increasing amount of scrutiny on the financial services industry and the big super funds in terms of the value of their advice and returns in recent years. Many Australians are now opting for a more independent route in order to maximise their future financial wellbeing. A self-managed super fund may be the right option for you. Talk to a specialist SMSF adviser, who can not only discuss the normal areas such as insurance and investment plans but also understands the law and tax applicable to these funds. Many people are now using their SMSFs to purchase property with debt, but if poorly executed, this brings unintended penalties so work with a specialist to maximise your returns. Other useful sources of information include joining specialist associations such as the Australian SMSF Members Association, which is a voice for members and not driven for the benefit of the profession.</p>
<p>There is a lot of value in investing in improving financial literacy. Not knowing is like throwing money down the drain; as many of these steps show, simply altering the way existing finances are structured can dramatically increase your cashflow, giving you that added flexibility to generate more wealth, whether that be through property or other investments.</p>
<p><b><i>Ken Raiss</i></b> <em>is <i>a certified accountant and director of <a title="Chan &amp; Naylor " href="https://www.chan-naylor.com.au/" target="_self">Chan &amp; Naylor</a> national accounting firm. Ken’s experience lies in working with large publically listed multi-national companies, which gives Ken excellent insight into international market trends. Ken specialises in educating “mum and dad” property investors and small business owners with advice on wealth creation, asset protection, taxation, superannuation and compliance.</i></em></p>
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kenraiss-JsVyb3YKka

Maximise your investment properties and 10 other ways to improve your financial fitness in 2013: Ken Raiss

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<p>First-home buyers shouldn’t ignore personal insurance – such as life or disability insurance and income protection – thinking they’re too young to need it or can’t afford it.</p>
<p>Appropriate insurances are essential for anyone with a home loan or any form of significant debt.</p>
<p>It doesn’t matter if you’re a 25-year-old buying your first house or a 45-year-old upsizing the family home for the third time, personal insurance should be a not negotiable.</p>
<p>Anyone with a major financial commitment such as a mortgage, no matter what their age, really needs to look at having personal insurances in place to protect themselves.</p>
<p>There are a range of insurances on offer and understanding these helps people to put a risk management strategy in place that will work for their individual circumstances:</p>
<p><strong>Income protection</strong> – Income protection insurance will cover up to 80% of your pre-tax salary if you are temporarily unable to work due to illness or injury. The premiums are tax deductible.</p>
<p><strong>Trauma insurance</strong> (also known as recovery insurance) – Pays a lump sum if you are diagnosed with a serious illness such as cancer, heart attack or stroke, or undergo major surgery.</p>
<p><strong>Total and Permanent Disability (TPD) insurance</strong> – Pays a lump sum if you become totally and permanently disabled.</p>
<p><strong>Life cover</strong> – Also called life insurance or term insurance, this pays a lump sum when you die or become terminally ill.</p>
<p>While it needs to be recognised that first-home buyers are often juggling a tight budget, it's also true that they can't afford not to have appropriate insurances in place.</p>
<p>Insurance premiums might add an extra $80 or $100 to the monthly budget, but the cost of not having cover in place could potentially be devastating.</p>
<p>If the concern is that they can’t afford the $80 or $100 a month in premiums, then what happens if they are no longer able to work? How does everything from the mortgage to the electricity and groceries get paid?</p>
<p>The earlier in life you put personal risk insurance in place, the more affordable it will be. Generally speaking, insurance premiums for a 25-year-old are significantly cheaper than for a 45-year-old.</p>
<p>Taking out the insurance when you’re young and presumably fit and healthy means it’s easier to be approved for the insurance in the first place, and it will be cheaper.</p>
<p>Insurance industry figures show more than three out of four Australians will contract a serious illness at some stage in their working life.</p>
<p>Many people mistakenly believe they only need to worry about insurance when they have children.</p>
<p>While having a family heightens the need, if you’re a single person solely responsible for your mortgage, how would that mortgage be paid if you had an illness that meant you couldn’t work for a year?</p>
<p>It might be that life insurance isn’t such a priority as you don’t necessarily need to leave money behind, but income protection and trauma insurance could be the difference between being able to keep your house or not if you had an accident or became ill.</p>
<address>
<strong style="font-size: 14.545454025268555px;"><em>Joe Sirianni</em></strong><em style="font-size: 14.545454025268555px;"> is executive director of <a target="_blank" href="https://www.smartline.com.au/" rel="nofollow">Smartline</a>.</em><br>
</address>
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jsirianni-sEFeNfmAJo

First-home buyers need personal insurance: Joe Sirianni

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<p class="Body1" style="text-align: justify;">The Queensland Government has given the world a new definition of insanity.</p>
<p class="Body1" style="text-align: justify;">A time-honoured definition is doing things the same way but expecting different results. Queensland’s state government, in seeking to breathe life into its failed First Home Owners Construction Grant, has come up with a new form of nuttiness: doing things the same way but giving it a new name.</p>
<p class="Body1" style="text-align: justify;">Since the grant scheme – which gives $15,000 to first-timers who build new homes – was launched in September, just 126 have taken advantage of it. The government’s solution is to keep the scheme unchanged but to rebrand it.</p>
<p class="Body1" style="text-align: justify;">I’m an optimist by nature but I despair of politicians ever understanding real estate or implementing measures that genuinely help the industry.</p>
<p class="Body1" style="text-align: justify;">The Queensland flop continues a long history of failure by government grant schemes for housing. Despite the low success rate, governments continue to offer small sums of money to first-time buyers and wonder why it never works.</p>
<p class="Body1" style="text-align: justify;">The building industry fuels the failure by lobbying government to give handouts to people who buy or build new homes. They must know this approach essentially doesn’t work, but the Master Builders Association has recently lobbied the federal government to boost grants to first-home buyers.</p>
<p class="Body1" style="text-align: justify;">Perhaps the building industry was fooled by the upturn in first-home buying activity in 2009, at a time when federal grants were particularly generous. But it wasn’t the grants that inspired first-time buyers – it was vastly improved affordability through lower prices and sharply lower interest rates, in the wake of the GFC impact.</p>
<p class="Body1" style="text-align: justify;">Grants simply don’t work. They do little to bridge the gap between the cost of a new home and the cost of established housing of similar standard. The new product, on average, costs $70,000 more and a grant of $7,000 or $15,000 doesn’t cut it when young hopefuls do their sums.</p>
<p class="Body1" style="text-align: justify;">The core problem is the component of government taxes and charges in the cost of new dwellings. The research indicates that government imposts such as stamp duty can be as much as 40% of the cost. That means a $400,000 house-and-land package would cost just $240,000 if those imposts were removed.</p>
<p class="Body1" style="text-align: justify;">In offering a relative pittance to buyers, politicians are giving with one hand and taking 10 times as much with the other. And they wonder why their schemes don’t work.</p>
<p class="Body1" style="text-align: justify;">Even a scheme happening in the Port Macquarie region of New South Wales – where first-home buyers can get over $40,000 in benefits through a mixture of council rebates, state government grants and stamp duty concessions – doesn’t come close to bridging the whole gap between new housing costs and established house prices.</p>
<p class="Body1" style="text-align: justify;">You have to wonder: do politicians really fail to understand why their policies don’t work? Or do they indulge in cynical exercises to give the appearance of doing something for young buyers, while continuing to milk real estate as their favourite cash cow.</p>
<p></p>
<p><i><strong>Terry Ryder</strong> is the founder of <a target="_blank" href="https://www.hotspotting.com.au/">hotspotting.com.au</a></i></p>
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First-home buyer grant schemes simply don't work: Terry Ryder

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<p class="body1" style="text-align: justify; background-position: initial initial; background-repeat: initial initial;">The Queensland government has officially renamed its $15,000 first-home owner construction grant (FHOCG) the 'great start grant' without noting the irony.</p>
<p class="body1" style="text-align: justify; background-position: initial initial; background-repeat: initial initial;">Just 126 first-home buyers have taken advantage of the <a href="https://www.propertyobserver.com.au/queensland/the-%2415000-queensland-first-home-owner-construction-grant-what-first-home-buyers-need-to-know/2012091156510" target="_blank">FHOCG </a>since it was launched on September 12 last year, replacing the $7,000 first home-buyer grant that was available to first-time buyers of both new and existing homes.</p>
<p class="body1" style="text-align: justify; background-position: initial initial; background-repeat: initial initial;">Last week Terry Ryder launched a scathing attack on the <a href="/news">Queensland government’s first-home buyer incentives</a> calling them a “new definition of insanity”.</p>
<p class="body1" style="text-align: justify; background-position: initial initial; background-repeat: initial initial;">“The government’s solution is to keep the scheme unchanged but to rebrand it.</p>
<p class="body1" style="text-align: justify; background-position: initial initial; background-repeat: initial initial;">“I’m an optimist by nature but I despair of politicians ever understanding real estate or implementing measures that genuinely help the industry.</p>
<p class="body1" style="text-align: justify; background-position: initial initial; background-repeat: initial initial;">“The Queensland flop continues a long history of failure by government grant schemes for housing. Despite the low success rate, governments continue to offer small sums of money to first-time buyers and wonder why it never works," Ryder wrote.</p>
<p class="body1" style="text-align: justify; background-position: initial initial; background-repeat: initial initial;">The <a href="https://greatstartgrant.osr.qld.gov.au/index.php" target="_blank">great start grant </a>is available for first-home buyers buying or building a new home valued under $750,000.</p>
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Queensland $15,000 first-home buyer construction grant gets new name after less than “great start”

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<p>The regional housing market is at its most affordable in almost a decade, according to the latest HIA-CBA Housing Affordability Index.</p>
<p>Overall housing affordability improved by 5.5% over the 2012 December quarter representing an 18.4% advance on the same period of 2011.</p>
<p>Affordability improved in all capital city and state regional housing markets with the biggest regional improvement occurring in NSW, where the affordability multiple improved from 1.43 to 1.31.</p>
<p>The HIA defines the affordability multiple as “the number of full time average incomes required to reach the qualifying income to service a loan on a median priced home”.</p>
<p>Tasmania is the most affordable regional market with a multiple of 1.13 with Hobart also the most affordable capital city market with a multiple of 1.20.</p>
<em>Click to enlarge</em>
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<p>Sydney remains the least affordable capital city housing market with an affordability multiple of 1.75.</p>
<p>Victoria is the least affordable regional housing market with a multiple of 1.55.</p>
<p>Overall, the index improved from 65.3 to 68.9 with the national affordability multiple improving from 1.53 to 1.45.</p>
<p>A year ago it was 1.72.</p>
<p>“This is the eighth consecutive quarter of increase in the index, bringing it close to levels not seen since the depths of the GFC during 2009,” says HIA senior economist, Shane Garrett.</p>
<p>“For regional areas, affordability is at levels last seen during the early 2000’s decade. Affordability is on the increase in every part of the country.</p>
<p>“This has been driven by the weakness of price developments as well as the two cash rate reductions effected by the RBA in the final quarter. Continued growth in earnings has also served to make housing more affordable”.</p>
<p>“It is worth noting that affordability would be even more favourable to householders had recent RBA rate cuts been passed on fully be lenders.”</p>
<p>Despite the continued improvement in housing affordability first-home buyer numbers remain at <a target="_blank" href="/news">near record eight year lows</a> with Garrett noting that “transactions activity on the ground is very sluggish”.</p>
<p>“This underlines the need for stronger interventions from the RBA in terms of interest rates and from the government with regard to the heavy taxation of home purchase,” he says.</p>
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