Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Finance

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The Australian Bureau of Statistics (ABS) released housing finance data for July 2014 earlier this week. 
The headline result was the 0.3% rise in owner occupier housing finance commitments over the month.  In my opinion, a more significant result was the 6.8% monthly rise in investment lending. 
Investment lending had shown signs of slowing over recent months but has come surging back in July.
<img class="aligncenter size-full wp-image-3700" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-11.jpg" alt="Chart 1" width="500" height="182">
Looking at the value of housing finance commitments over the month, the total value increased by 2.7% in July (2.6% excluding refinances).  Owner occupier refinance commitments increased by 3.1%, owner occupier new mortgage commitments fell by -1.3% and investment finance commitments increased by 6.8%. 
Year on year, the total value of finance commitments has increased by 17.4% or 17.2% excluding refinances. The year on year increase in owner occupier refinance commitments was 18.6%, new home loan commitments to owner occupiers were 7.1% higher and lending to investors surged 29.6%. 
In the current climate, subsequent purchasers and investors are occupying the majority of housing finance demand.
<img class="aligncenter size-full wp-image-3701" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-21.jpg" alt="Chart 2" width="500" height="182">
Looking at the same data but focussing on the proportion of total lending reconfirms the high level of lending to investors and subsequent purchasers. 
In July, 41.4% of total mortgage lending was for new loans to owner occupiers, 18.3% was to owner occupiers for refinances and 40.3% was to investors.  The 41.4% of total commitments to owner occupiers (excluding refinances) was the lowest proportion of lending to this cohort on record. 
Conversely, at 40.3% of all mortgage lending, investment lending was at its highest proportion since October 2003 (and second highest ever).  If you remove refinances from the equation 49.3% of lending was to investors which was a record high.
<img class="aligncenter size-full wp-image-3702" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-31.jpg" alt="Chart 3" width="500" height="181">
Data focussing on the number of loans to owner occupiers shows there were 52,251 owner occupier commitments in July.  The number of commitments rose by 0.3% over the month however, it has recorded only a moderate 1.7% rise year on year. Loans for refinancing purposes increased by 2.4% over the month and 6.6% year-on-year compared to a -0.7% fall in non-refinanced loans over the month and a -0.7% fall over the year. 
This data and the data previously detailed suggest that demand from owner occupiers for new loans has slowed with investors and refinances currently driving activity.
<img class="aligncenter size-full wp-image-3703" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-41.jpg" alt="Chart 4" width="500" height="179">
The owner occupiers that commit to finance overwhelmingly commit to finance for the purposes of purchasing an established dwelling. 
In July, there were 25,469 new owner occupier loan s (excluding refinances) for the purchase of established dwellings, 6,157 for construction of new dwellings and 2,871 for the purchase of new dwellings. 
Over the month, established dwelling commitments were down -0.7%, construction of dwellings were -1.3% lower and purchase of new dwellings was 0.5% higher. 
Year on year, commitments for the purchase of established dwellings are -3.6% lower while commitments for construction are 16.4% lower and commitments for purchase of new are -5.1% lower.
<img class="aligncenter size-full wp-image-3704" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-51.jpg" alt="Chart 5" width="500" height="181">
The number of housing finance commitments by first home buyers remains stuck at near record low levels. 
In July, there were 6,717 housing finance commitments to first home buyers, which accounted for 12.2% of total owner occupier commitments over the month. 
The number of first home buyer housing finance commitments is -2.2% lower over the month and -15.7% lower year-on-year.  While the number of commitments by first home buyers is lower over the year, the average loan size has risen by 7.0%. 
First home buyers largely remain on the sideline in the current market as investors and subsequent purchasers capture much of the mortgage demand.
<img class="aligncenter size-full wp-image-3705" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-61.jpg" alt="Chart 6" width="500" height="181">
Based on current mortgage rates, fixed rate loans generally have a lower interest rate than discounted variable loans. 
This is not necessarily unusual however, housing finance data showed that there were just 7,553 owner occupier finance commitments (or 13.7% of all owner occupier finance commitments) on a fixed rate in July.  The number of fixed rate loans has been trending lower after most recently peaking at 17.4% of all mortgage commitments in November 2013.
<img class="aligncenter size-full wp-image-3706" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-7.jpg" alt="Chart 7" width="500" height="264">
The RP Data Mortgage Index (RMI) which measures mortgage activity across RP Data’s proprietary platforms recorded a fall in August.  As this index is closely correlated with owner occupier housing finance commitments, we anticipate a fall in the number of owner occupier commitments next month when the ABS releases August data.
In volume terms, owner occupier loan demand is pretty steady and appears to be at or close to its peak.  Focussing on the value of lending it continues to climb as home values continue to increase. 
After seemingly topping out over recent months, investor commitments recorded a sharp rise in July.  As a proportion, investment lending is at its second highest monthly level ever and highest ever level if you exclude refinances.
The high level of investment lending remains a key area of concern.  With returns on safe asset classes extremely low many investors are purchasing property, mainly in Sydney and Melbourne where capital growth is strong and interest costs on loans are historically low.  As we have mentioned many times, such high rates of capital gain won’t continue forever and our concern remains what will happen if once the growth dissipates and interest rates move higher there may be a high number of these investors looking to exit property. 
We know that historically once value growth slows demand also eases, if these investors look to sell as demand drops a risk develops that value falls could become greater as these investors enter a discounting war in order to sell their homes. 
Obviously this may be good news for those first time buyers which are currently sidelined from the market, however it would be bad news for the two thirds of Australians that own or have a mortgage and have the majority of their wealth stored in their home in the form of equity.
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ckusher-ujnxiKuFQs

Investor demand for housing reaches an historic high

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First home buyers are often working with a different set of requirements than more experienced investors.
With fewer working years behind them, beginners are likely to have a smaller deposit to work with and fewer assets than upgraders or downsizers - and much less experience.
Financing is a large part - perhaps the largest part - of securing your own home, and many lenders are aware of the circumstances facing first home buyers.
Once upon a time, the Rudd government introduced First Home Savers Accounts, where savers could receive a government co-contribution of up to $1,020 on the first $6000 savers deposited each year. They were also eligible for a range of tax concessions, but were faced with a number of restrictions on when they could withdraw their money.
The First Home Saver Account scheme was <a href="/expert-insights/buying/four-things-you-must-know-about-the-axed-first-home-saver-accounts">scrapped by the Abbott government</a> this year, leaving some confused as to whether the <a href="/expert-insights/buying/do-the-first-home-saver-account-eligibility-requirements-still-apply">restrictions still apply to their accounts</a>. While ME Bank have <a href="/expert-insights/finance/me-bank-looks-for-an-answer-to-scrapping-of-first-home-saver-accounts">suggested they may offer a similar product</a> in the future, it has not yet eventuated.
Now, with no federal scheme supporting first home savers, it's up to them to seek out the best deals from lenders to finance their first purchase.
Lenders Mortgage Insurance
One option is seeking out a lender that will accept a small deposit. When putting down a deposit lower than the standard 20%, many lenders will require you to pay for lenders mortgage insurance (LMI), which will protect them against a loss should you default on your home. This isn't a product that is unique to first home buyers, but can be used by buyers across the board who don't want to make a 20% deposit.
While it might be <a href="/expert-insights/buying/what-can-you-buy-with-a-25-000-deposit">tempting to put down a 5% or 10% deposit</a> and pay the few thousand dollars for LMI, keep in mind that you're not exchanging money for equity in your home (as you would be if you increased your deposit size) and the money cannot be recovered when you sell your house.
Beyond grants, it's mostly up to mortgage brokers and lenders to deliver products that may make life easier for first home buyers. Here are some of the available options.
Guarantors
While some parents don't want to contribute money to their child's deposit, they can support a first purchase by acting as a guarantor. A guarantor has a legal obligation to pay back a loan if the borrower (often their child) can't continue making their repayments. Occasionally, a lender will require a guarantor to use their home or a large asset as security for a loan. Sometimes guarantors can set a limit on the amount they'll contribute to a loan.
With a guarantor, a first home buyer making a 10% deposit can often forgo or reduce LMI. A number of different lenders accept guarantors - Beyond Bank has a <a href="https://www.beyondbank.com.au/personal-banking/home-loans/first-home-buyers-loan" target="_blank">"Parent Equity" scheme</a>, while St George refers to the practice as a <a href="https://www.stgeorge.com.au/personal/home-loans/tools/home-loan-features/family-pledge" target="_blank">"Family Pledge"</a>.
While guarantees are often associated with parents, some lenders accept friends as guarantors. Resolve Finance offers guarantor home loans where a friend or family members use the equity in their own homes to guarantee a loan, allowing borrowers to go without a deposit.
While guarantors sound good, beware. If there is any doubt over your ability to repay your loan, you could end up costing your guarantor their home or retirement savings.
First home buyer packages
A number of lenders offer first home buyer "packages" or specialist products. The discounts or benefits they offer vary (as does their value).
Commonwealth Bank offers a <a href="https://www.commbank.com.au/personal/home-loans/first-home-buyer-offer?gclid=cotw6i6av8acfdr8vqodjbkaiw&amp;c" target="_blank">$1,000 cash bonus on your first loan</a>, which could be straightforward and appealing to some.
In South Australia, first home savers using <a href="https://www.homestart.com.au/buying-a-home/I-m/first-home-buyers" target="_blank">Home Start Finance</a> can make a deposit as low as 3% of the value of your loan, and the First Home Owner Grant is included in deposit calculations.
Meanwhile, <a href="https://www.bankmecu.com.au/borrowing/loan-packages/first-home-buyers-loan-package" target="_blank">bankmecu</a> offers a first home buyers loan package where borrowers can pay $350 per year in exchange for lower rates, three months free building insurance during settlement, 10% off  general insurance premiums and no monthly or additional repayment fees, subject to certain conditions.
Other lenders, such as the <a href="https://www.nicu.com.au/loans-home-loan-packages" target="_blank">North Ireland Credit Union</a>, get even more creative, with furniture vouchers and credit card incentives.
If you are considering a first home buyer package, go in with open eyes and take some time to do your calculations. Think about what's valuable to you - would you prefer to pay a set fee every year for the possibility of lower rates? This could be a worthwhile option, but only if the saving in interest is greater than your yearly fee. Don't simply take up first home buyer packages because they look good superficially, but consider as many loan options as you can.
In deals not exclusive to first home buyers, lenders are also <a href="/expert-insights/finance/record-low-fixed-rates-who-is-offering-them">offering record low rates: </a>ME Bank currently offers a 4.94% rate on their three year fixed rate loan. However, bear in mind that added flexibility offered by a variable loan. 
Take the time to look at the short-term incentives available, but don't forget - buying a home is a long-term commitment.
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jrichardson-uRX5hFdKfN

Finance deals for first home buyers 

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When rates are low, prices usually rise and first home buyers can feel shut out. 
But all is not lost if you stick to a few simple tips.
<ol>
<li>Deposit: Lenders want to see you have at least 5% of the purchase price as genuine savings (generally you'll need 10 per cent overall). You can top up with money from your parents or grandparents, but you have to show at least six months of your own savings. Start saving, now. </li>
<li>Savings: Set a goal for your deposit amount and save in a high-interest savings account that's separated from household expenses. Set a weekly deposit goal, use direct crediting and if you're a couple, have one person's income going directly into savings. </li>
<li>Reduce debt: Eliminate or reduce the limits on your credit cards and store cards. Lenders look at the limit on your cards, not your balance. </li>
<li>Grants: The First Home Owners Grant can help with your purchase. But it must be for a new home construction; you can't use it to buy the land and lenders will not treat the FHOG as part of genuine savings. Do your homework because the grant differs slightly between states. </li>
<li>Income: Lenders like to see stability and want to see evidence that you will repay the mortgage. So you should demonstrate at least six months (but preferably one year) of PAYG employment, or two years of financials and tax returns if you're self-employed. </li>
<li>Shop around: You can find variable rate mortgages in the range of 4.6 per cent to 6 per cent. The 1.4 per cent difference, on a 350,000 loan over 30 years, is worth more than $300 a month. </li>
<li>Marketing: Watch for "discount" mortgages and special low offers. The low rates last for a year or two and then revert to a much higher rate. Always look at the "comparison rate". </li>
<li>Fixed: Many first-home buyers like to balance their budget for a few years, and a fixed loan creates certainty. However, once in a fixed loan, your flexibility is restricted and you may encounter break costs if you want to sell or refinance. </li>
<li>Vary it: Variable rates fluctuate with the market but they are flexible, allowing you to repay higher amounts and deposit lump sums from bonuses and tax refunds, speeding your repayment. You can refinance a variable rate loan without penalty. </li>
<li>Offset: When you put all your income into a mortgage offset account, the balance pays down the mortgage by the amount you have in there each day. It stops interest capitalising against you as fast as monthly repayments. Offset accounts suit good budgeters. </li>
<li>Price: Don't be disheartened if you can't buy what you want - buy the next-best and build a strategy for your next property. </li>
<li>Advice: Mortgage brokers are excellent for insights, strategies and getting you a good result. They're worth talking to. </li>
<li>Always remember: When borrowing money and buying property, the same basic rules apply to everyone. So do your homework, be prepared, take some advice and go for it.</li>
</ol>
Mark Bouris is executive chairman of wealth management company <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, which sells financial advice and home loans.
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13 simple tips to help first home buyers save for a deposit

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Saving for a deposit - particularly on a single income - is a difficult task.
If you've cut back all you can but desperately want to purchase your own home, it can be done for less than you think.
A $25,000 home deposit may be tempting, but the reality is more difficult than it seems.
If you're only putting down $25,000 for your deposit, it's likely that you're only paying a 5% or 10% deposit, rather than the 10% to 20% that many people prefer.
Policies will change between lenders but if you're borrowing more than 80% of the value of your property, you'll most likely be required to pay Lenders Mortgage Insurance (LMI). LMI protects your lender against a loss if they sell your home after you default - essentially making up for the additional risk they take on when increasing the proportional value of your loan.
If you want to put down a small deposit, budget in your LMI payment. The two major LMI providers in Australia, <a href="https://www.genworth.com.au/borrower-centre/homebuyer-tools/lmi-premium-estimator/?gclid=CO2R6M2yprgCFQMwpAodTjQASA" target="_blank">Genworth</a> and QBE LMI, both offer calculators to help you budget in the additional cost. (For more on LMI, <a href="/expert-insights/investing/less-than-a-20-deposit-the-8-things-you-need-to-know-about-lenders-mortgage-insurance-lmi">see this article</a>.
While your LMI will most likely cost less than an additional 10% deposit, remember that you are not exchanging that sum for equity in your home - once your LMI payment is gone, it's gone forever - and you'll still have to pay that extra 10% you've dodged now to your lender later on (with interest).
Though buying a home with a $25,000 deposit now can speed up the home buying process, keep in mind the benefits of waiting until you're more financially secure before you purchase a home. It may be the case that <a href="/expert-insights/buying/the-10-signs-that-you-may-not-be-ready-to-buy">you're just not ready to purchase yet</a>.
And while it's probably the biggest financial hurdle you face in purchasing a home, the <a href="/news/vic/how-to-work-out-how-much-buying-a-home-costs">deposit isn't the only cost associated with buying a home</a>. 
But if you do have $25,000 in the bank that you're itching to invest, what can you buy? Assuming you need to pay a 10% deposit (and the bank will approve your loan), Property Observer has tracked down some bargain buys. For each of these homes, a first home buyer could expect to pay an additional $3,060 LMI premium, according to Genworth.
<ul>
<li><a href="https://www.realestate.com.au/property-house-qld-vincent-117792651" target="_blank">254 Palmerston Street, Vincent, QLD</a></li>
</ul>
<img src="/images/2014/08/29/palmerston%20aug%2029.jpg" alt="">
Vendors are accepting offers in the mid-$200,000s for this three bedroom Townsville Queenslander. The currently rented house is within walking distance of the Vincent primary school and shopping centre, and is set on a 731 square metre block.
<ul>
<li><a href="https://www.realestate.com.au/property-apartment-vic-carlton-117792195" target="_blank">523/800 Swanston Street Carlton Vic 3053</a></li>
</ul>
<img src="/images/2014/08/29/carlton%20aug%2029.jpg" alt="">
If you want something close to an urban centre, this one bedroom apartment in Melbourne's inner city is on the market for $180,000 plus. Tenanted until February next year at a 9.3% yield ($1,439 per month), the apartment is a ten minute walk to the CBD. However, it's micro sized, with only 32 square metres of floor space.
<ul>
<li><a href="https://www.realestate.com.au/property-apartment-wa-east+perth-117538663" target="_blank">22/45 Adelaide Terrace East Perth WA 6004</a></li>
</ul>
<img src="/images/2014/08/29/east%20perth%20aug%2029.jpg" alt="">
Another snug apartment is on offer in East Perth, with an asking price of $245,000. The 33 square metre studio apartment is currently rented out at $320 per week.
<ul>
<li><a href="https://www.realestate.com.au/property-house-nsw-scone-114888183" target="_blank">37 Scott Street Scone NSW 2337</a></li>
</ul>
<img src="/images/2014/08/29/scone%20aug%2029%20one.jpg" alt="">
This two bedroom weatherboard house in the Hunter Valley comes with a price guidance of $230,000. Set on a quarter acre block (1,012 square metres), the house has a lounge room with a separate dining area that could be converted to a third bedroom.
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What can you buy with a $25,000 deposit? 

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One of the biggest hurdles for many prospective first time home buyers and first time investors is affording the initial deposit.
While those who already own a home or asset have the ability to either sell or use any equity they have built up, novice investors will be required to stump up a sum of money to get their foot onto the property ladder.
However, short of "buying a cup of coffee less a week" (which is real 'advice' doled out to first timers on a regular basis), what are the actual savings tips that will let you get ahead?
Here are some collected tips on how to boost your savings, push up that deposit and see yourself purchasing a property sooner than expected. There are two basic areas to improve here – earning more or spending less.
Earn
<ul>
<li>Sell unwanted goods</li>
</ul>
If you're an average person in your 20s or 30s you will likely have accumulated a lot of unwanted "stuff". That is, clothes that you don't wear (often with tags attached for the shopaholics), outdated mobile phones, laptops and other electronics, and gifts you never wanted or never used. A bit of time and effort online can quickly turn these into extra space in your current home and cash in your pocket. Websites such as eBay and Gumtree require you doing very little other than uploading a description and some decent photographs. Also try Twitter and Facebook shout-outs.
<ul>
<li>Use your skills wisely</li>
</ul>
While you may not be able to take on that second job, you can still use your skills for some cash. Whether it's writing a freelance article, or creating art to sell online, there are some ways to have sideline projects. Former Property Observer journalist Nicola Trotman has <a href="https://luluscandles.com/" target="_blank">Lulu's Candles</a> - an online vegan soy candle shop - and a number of staff write freelance articles.
You may also be able to fix computer problems, or even teach people (many Community Colleges are looking for people to teach short courses and the demand for private tutors rarely eases off) or perhaps you can bake cakes to sell them to friends or at stalls. Online sites such as etsy.com can be really helpful, as can different markets that often allow you to set up a stall for a small fee. Remember to use flyers in your local area to advertise your services.
<ul>
<li>Do odd jobs</li>
</ul>
While it can be tedious to go from person to person to find out if there's anyone who might be willing to part with a bit of money in return for someone to do the run to the shops, there's now an online solution. The website <a href="https://oneshift.com.au/" target="_blank">One Shift</a> is getting even more popular as a way to get quick short-term employment for a little bit of extra cash.
<ul>
<li>Rent out your space</li>
</ul>
If you have a spare room (or garage space), or you could bring another tenant into your rental to share costs, then either of these can be a practical temporary option.
Tips on how you can save money by spending less are on the next page.
<hr class="system-pagebreak">
Spend less 
<ul>
<li>Home brand/basic brand everything</li>
</ul>
From medicine to baked beans, and from iPods to clothes, there's a generic brand available. If you're in savings mode then you should take full advantage of these cheaper alternatives. While they may not be quite as nice, it's rare that the extra cost actually translates into the product truly being that much better. Make sure you weigh the pros and cons up first. 
<ul>
<li>Keep a coin jar </li>
</ul>
Take out your cash from the ATM (and avoid those pesky $2+ charges at 'other' ATMs) for the week and spend no more than you have. Try to leave the credit and EFTPOS cards at home when possible and limit online buying by having a separate card and separate account where you can limit the money that you put in. Keep access to funds at a distance and provide obstacles, and see yourself spend less.
<ul>
<li>Cancel your unnecessary costs</li>
</ul>
Do you really use that gym subscription? Be honest with yourself about what services you are using and what you can cancel. If having a gym membership is important to you, then keep it, but if you're going once a fortnight then question the cost. Also consider your memberships to organisations, costly subscriptions to titles you may not read and other money drainers. See if there's a way you can minimise these costs as well - are you on any plans that you can bring down a level (or increase, if you're going over every month)? 
<ul>
<li>Get gifts you need</li>
</ul>
If your birthday is coming up, ask for things you'll actually use. Maybe get them to pay for your gym subscription or thr sunglasses that you've needed instead.
<ul>
<li>Shop around</li>
</ul>
You likely hear this one all the time, but if you can give your shipping trip a bit of extra time it'll be worth it. Most shopping centres have a Woolworths and a Coles, so pick up both brochures and look for deals. Keep an eye out for reduced food, and when it gets reduced through the day. Remember to consider secondhand goods and books as well - just as we mentioned selling your secondhand items above, you can also pick up the things you need far more cheaply on these sites.
<ul>
<li>Rent or borrow, don't buy</li>
</ul>
Your library, DVD rental (or iTunes rental) and your acquaintances can be used to good effect when saving money. Instead of buying that DVD you'll watch once for $25, go and pick up a $5 rental. Sign up to your library for books, CDs and DVDs (they also have magazine sections and regularly host free events). And ask friends when you need a bigger item. Perhaps you need a steam cleaner or you find yourself needing an unusual kitchen appliance - ask around and see if anyone can lend you one for the task. Consider sharing items such as books and magazines among friends as well - circulating these luxury items can save you a significant amount in the long term.
<ul>
<li>Use less or use what you buy completely</li>
</ul>
It sounds hard, but it's often just a case of looking a little closer at how you go about your day. If you have food leftovers, see what you can feed to your animals (check for allergens and unhealthy items first - such as avocado, dairy, raisins and more being dangerous for dogs). You might be able to turn some of the food into "other dishes", such as turning a curry one night running into a pie the second night, or turning spaghetti bolognaise sauce into a lasagna. However, these tips do not just apply to food - have a look at your other costs too. Consider using a two-in-one shampoo/conditioner, or toothpaste/mouthwash (a new product we've seen) that can often cost substantially less than buying and using both.
Some further tips and suggestions are on the next page. Please click below. 
<hr class="system-pagebreak">
Extra suggestions
<ul>
<li>Make the most of rewards points</li>
</ul>
Keep an eye on rewards cards and free store cards that can get you access to deals and offers. Ensure there aren't any excess costs to sign up and be a 'member' that may outweigh the benefits. Ensure you only use coupons when you were already intending to buy the item (or when it turns out to be the more economical alternative). There are a number of decent loyalty cards that can provide some significant benefits.
<ul>
<li>Track your spending using an app</li>
</ul>
Keeping an eye on what you're spending and where can be half the struggle. Luckily, if you're a smart phone user, then you can just download an app that will help you keep an eye on it. Consider MoneySmart if you're unsure where to start. For non-smartphone users, a simple written diary of costs and every time you purchase an item will do just as well - as will an Excel spreadsheet that you can update.
<ul>
<li>Check if you're using the best savings account</li>
</ul>
You may be on an interest rate that's low, or an account that charges excess fees when you take money out. Ensure you know the fine print for your accounts, and always check with your banking institution to see if there's a product that may better fit your personal situation. Many have multiple savings-style accounts.
<ul>
<li>Look towards DIY first when you need to fix something</li>
</ul>
You'd be surprised how many YouTube videos and online tutorials there are explaining how to fix some of the most niche items. We've heard of people using online tutorials to build fireplaces, fix car windows and more. While you want to make sure it's not another example of a "false economy" and that you will actually save money (and won't put yourself in danger), it's always worth seeing if you can reduce labour charges by doing it yourself.
<ul>
<li>Check your tax</li>
</ul>
Are you claiming all the exemptions you are entitled to? Sometimes not using an accountant is truly a false economy, and you really want to make sure you maximise your tax return. See the <a href="https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/" target="_blank">claimable deductions by profession</a> to ensure you have put everything on the list. Keep your receipts in order or recorded as you go.
<ul>
<li>Don't miss out on special offers</li>
</ul>
If you are looking to buy something online, the first thing to do is type the name of the shop or item into Google and search for 'coupons', 'promo codes' and 'offers' to see if anything comes up. Once or twice out of 10 you might net yourself a 10% decrease, an added bonus or even a free ticket. You might also want to sign up for free online newsletters (get yourself a 'dummy' email to send these to) for comedy clubs and different events and you'll often see significant reductions being offered to online members last minute. Just be wary that you don't buy anything you weren't initially intending to due to seeing the advertisement.
<ul>
<li>Don't forget to argue</li>
</ul>
If you have an unfair fine - put in a call (and take photos for evidence). They can only say no. And if you have done the wrong thing, pay it on time before it gets out of hand.
YOU MIGHT ALSO WANT TO READ <a href="/expert-insights/finance/getting-a-bigger-home-loan-seven-tips-to-boost-your-borrowing-power">Seven tips to boosting your borrowing power</a>
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Mastering your deposit: Tips to boost your savings

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If you are thinking of developing property then you will need to have a good understanding of construction finance.
As property developers, most of our clients like to highly gear their lending. That means, using as much funding from others to pay the builder rather than use their own cash reserves.
However, you may like to use a line of credit (LOC) set up against another property and/or cash on hand to fund your development. It will depend on your own situation and strategy.
You will require some cash to put into the deal of course for deposits on the land purchase and on the construction loan.  The loan to value ratio (LVR) will vary from lender to lender from just 50% up to 95% with lender's mortgage insurance (LMI).
What Is a Construction Loan?
A construction loan is specifically intended to be used to pay for the construction of new dwellings. The loan will be finalised once you have provided your lender with a number of documents including the DA consent for your project, the construction certificate, council stamped plans and your signed builder's contract.
If you are not sure who to use for construction lending, a good starting point is a mortgage broker. They will look at your individual situation and advise the right lender for you. 
However, make sure you do your finance due diligence before you buy the land/property you intend to develop. It's important the lender you use to finance the purchase of the land/initial property also offers construction loans as not all lenders do. You can brief your broker to only present lenders who offer construction loans.  Early identification of any issues that may impact on your lending, will mean a smoother process once your development application is approved.
Understanding the process
In the builder's contract there will be a draw down schedule. Some banks will accept this and others may ask for it to be changed to suit their policy.  Once your lender gives you unconditional finance approval, they will send a letter to the builder authorising the commencement of construction work.
The first drawdown or payment to your bank will be required after the slab or slabs are laid.  
The second due after frames and trusses are erected.
The third is typically due after brickwork, windows and roof coverings are completed.
The fourth payment will be paid after the internal linings (insulation, plasterboard or internal concrete walls, ceilings) and timber mould out or fit out. This includes timber architraves, skirtings and doors. This can be known also as 'lock up' stage.
The last payment is due after a practical completion inspection is done and you are happy the builder has completed all (but some minor touch ups which they usually have seven days to complete). Your bank will send a valuer out to check that all works have been completed before they pay the final payment to your bank.
At Property Bloom, our role is to ensure the builder meets these milestones before we instruct our client to authorize all payments. We also oversee any credits that may be due to our clients and variations that may be required. It's important property developers do hold a contingency fund for any unforeseen works that may be required that aren't included in the builder's contract. For example, rock excavation is almost always an excluded item and mostly cannot be determined until the site works commence.
It is also possible for you to take out a construction loan for the renovation of your existing home or an investment property. However, the process of applying for a construction loan for renovations may differ to that of construction lending on new dwellings, so be sure to check this with your lender.
What do you need to submit in your application for construction lending?
The more you understand what banks are looking for before you apply for a construction loan, the better this can play out for your development and make the processes as smooth as possible.
We've had some situations where the bank has taken literally six months to process and finalise a construction loan. This is not good for property developers because our main goal is to complete our project as quickly and efficiently as possible. If you are waiting this long before you can start to build, then holding costs can eat into your profit. Here's <a href="https://www.mortgagechoice.com.au/media/2590560/Construction-loans.pdf">a good overview</a> on what you will need to have ready to submit to your lender to ensure a successful loan application as well as required repayments.
Being financially prepared is just as important for property developers as doing your due diligence on the right location for your development and using the right builder.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Financial preparation is just as important as due diligence for property developers

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The total value of housing finance commitments increased by 1.0% in June 2014. 
The total value of housing finance commitment is 15.6% higher year-on-year.  Meanwhile the number of housing finance commitments to owner occupiers has increased by 0.2% over the month and has increased by just 2.4% over the 2013/14 financial year.
<img class="aligncenter size-full wp-image-3581" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-1.jpg" alt="Chart 1" width="500" height="179">
The total value of housing finance commitments continues to trend higher however; the strength of the investment segment has waned over recent months. 
Over the month the owner occupier segment fuelled the increase with refinances up 1.6% and non-refinances up 1.9% while investment lending fell by -0.3%.It was the first time investment lending has fallen over consecutive months since December 2012. 
Year on year, the value of housing finance commitments is 15.6% higher with owner occupier refinances up 14.8%, owner occupier non-refinances up 9.4% and investment loans rising 23.8%.
<img class="aligncenter size-full wp-image-3582" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-2.jpg" alt="Chart 2" width="500" height="181">
As a proportion of total lending, the level of lending for investment purposes remains inflated on an historic basis although it has eased slightly. 
Owner occupier non-refinance commitments accounted for 43.4% of total lending in June compared to 18.1% to owner occupiers for refinances and 38.5% for investors. 
Although investment lending has eased it continues to hover at around its highest levels since late 2003. Remember 2003 was the final days of the housing boom in both Sydney and Melbourne which commenced in 2001.
<img class="aligncenter size-full wp-image-3583" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-3.jpg" alt="Chart 3" width="500" height="181">
The number of housing finance commitments to owner occupiers increased by 0.2% over the month and was 2.4% higher year on year. 
The year-on-year increase is the slowest rate of increase since February 2013.  This indicates that although demand for housing demand has increased, the rate of growth in this demand is slowing. 
Looking at the more detailed components, refinance commitments are -0.7% lower over the month and 5.1% higher year on year.  Non-refinance commitments have increased by 0.6% over the month and are 1.2% higher year-on-year.
<img class="aligncenter size-full wp-image-3584" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-4.jpg" alt="Chart 4" width="500" height="182">
The number of owner occupier housing finance commitments can be further broken down in to the type of commitments the finance is for.  The three categories we analyse here are: construction of dwellings, purchase of new dwellings and purchase of established dwellings (excluding refinances). 
Over the month, construction of dwellings rose by 1.1%, purchase of new dwellings was 4.6% higher and purchase of established dwellings edged just 0.1% higher. 
Year on year, the market strength has been associated with construction of new dwellings (+17.0%) rather than purchase of new dwellings (-2.1%) and purchase of established dwellings (-1.7%).  In fact the number of owner occupier finance commitments for construction of new homes is at its highest level since February 2010.
Keep in mind that in June 2014, 17.9% of these non-refinance commitments were for construction of dwellings, 8.2% were for purchase of new dwellings and 73.9% were for purchase of established dwellings.
<img class="aligncenter size-full wp-image-3585" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-5.jpg" alt="Chart 5" width="500" height="179">
The number of owner occupier housing finance commitments for first home buyers fell by -3.6% in June 2014 and are -6.2% lower year-on-year.
First home buyers continue to play little role in the market, accounting for just 13.2% of total owner occupier housing finance commitments in June. 
Interestingly the average loan size for first home buyers is increasing.  As home values rise they need to borrow a greater amount, this is highlighted by the 7.1% year-on-year rise which is the largest since December 2009.
<img class="aligncenter size-full wp-image-3586" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Fianl-chart.jpg" alt="Fianl chart" width="500" height="272">
RP Data’s Mortgage Index (RMI) which provides a lead indicator to the number of owner occupier housing finance commitments indicates that there is likely to be a lift in July.  Activity levels were 6.7% higher in July 2014 compared to June suggesting a likely rise in housing finance commitments over the coming month.
The data shows that while demand for housing finance is holding, we are potentially seeing a slowdown in demand from the investment segment.  Meanwhile demand for owner occupiers is steady, albeit the rate of growth is slowing with the strongest increases arising for those constructing their own home. 
Spring will be the real test for the market from here, investment activity remains elevated, auction volumes and results have been strong throughout winter and we wait to see if this momentum continues for the remainder of the year.  Particularly given that although values are continuing to increase, they are doing so at a more moderate pace than they were throughout late 2013 and early 2014.
Although mortgage demand has picked-up over the past two years, it is important to note that the number of finance commitments remain well below 2009 and much lower than activity levels prior to the financial crisis.
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Housing finance data reveals possible slowdown in investment demand

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Gen Y Australians are increasingly taking on debt, and that’s before they even get to their first mortgage, according to RateCity’s Consumer Study August 2014.
The new research has revealed that respondents aged under 24 received their first credit card at an average age of 20. Of those who are 65 and older, the average first credit card age was 34.
CEO of RateCity Alex Parsons said that the trend is worrying, with young Australians taking on high levels of debt.
“Our research shows 42% of young people under the age of 24 have between $10,000 and $30,000 of personal debt, not including a mortgage,” said Parsons.
“Australians aged 24 and under are also four times more likely to get a weekly cash advance from their credit card than were their parents’ generation.”
He noted that 56% of Gen Y with a credit card have never had a $0 balance on their card in the past year, with 63% unaware of the interest rate they are paying.
“It’s a real concern, given that the average credit card rate is close to 17% – that’s a lot of interest we’re talking about there,” he said.
Credit card use is on the increase, with 1117,000 more incremental cards on the market now than last year, bringing the total to 15.5 million in May, according to the Australian Bureau of Statistics. RateCity noted that Gen Y was the most likely to sign up.
Parsons pointed to a shift in the way money is used – becoming a cashless society – that is potentially making people see funds as disposable.
“These are alarming new statistics and we think a number of factors are at play here, but regardless of the causes I’d urge young people to get in control of their money today to avoid a financial nightmare down the track – starting life in your 20s with tens of thousands of dollars can be crippling,” he said.
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Young Aussies struggling with debt, and we’re not even talking mortgages yet: RateCity

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GUEST OBSERVATION
In the past, many borrowers would often stay with their home loan lender for the entire loan term.
But now that the mortgage industry is even more competitive, it is worth looking for a better deal.
There are a number of myths that may have stopped you from refinancing in the past, but we have busted a number of them below.
<ul>
<li>Too costly to refinance </li>
</ul>
With exit fees being abolished on 1 July 2011 (for loans established after this date), refinancing should no longer cost as much as you may think. Most lenders will charge fees to discharge the loan and possibly a legal fee. These cover the cost of releasing the title and closing down the loan account.
The main cost that may deter a borrower from refinancing is lenders mortgage insurance. If you borrowed more than 80% of the value of the property initially then there is a good chance you would have been charged mortgage insurance. Mortgage insurance is lender specific so if you subsequently look to refinance and the loan is still above 80% of the value of the property then mortgage insurance may be levied again.
Although there may be some fees included to switch lenders, if you find a lender who offers lower interest rates, little or no upfront fees or ongoing fees, you may find that you will receive greater savings over the life of the loan that outweigh these initial fees. But make sure you thoroughly research the options available to ensure you are getting the best deal.
<ul>
<li>Too much hassle to refinance</li>
</ul>
Refinancing will require some research, but won’t necessarily be a hassle. With competition between lenders being extremely strong, most lenders are eager to bring in new borrowers and make the application process as stress free as possible. To make things easier for you, collect as much financial paperwork as you can (e.g. payslips, work summaries etc) to help speed up the process.
If you find that a lender is not making the effort to respond to your enquiries or process the paperwork promptly, they may not be the most suitable option for you. Poor service before you apply could mean that service ongoing is poor and be an ongoing frustration.
One of the best places to start is comparing interest rates being offered by different lenders and then contacting your current lender to see if they will reduce your rate to match. If you are successful then you will have been able to reap the benefits of refinancing without much hassle at all!
<ul>
<li>Not worth refinancing if rate is only 0.5% lower than current rate</li>
</ul>
No matter how big or small the interest rate discount is, it can help save you money. For example, if you had a $400,000 loan over 30 years with a 5.5% interest rate, but then switched to a loan of 5.0%, you could save close to $125 a month or close to $45,000 over the loan term.
However, the interest rate isn’t the only factor that can help save you money on your home loan. Factors such as the differences between the ongoing fees for your current and new loan will need to be considered. A discount of an annual fee from $495 to $299 or even no ongoing fees could mean more money in your pocket over the long term.
There are a number of features that can save you a significant amount of money over the life of the loan. An offset account, free redraw and unlimited extra repayments are just some examples.
<ul>
<li>Borrower’s with a fixed rate loan cannot refinance</li>
</ul>
Borrowers are able to refinance with a fixed rate home loan, but there is a good chance there will be extra break costs.
Calculating break costs is complicated and takes into consideration how much your fixed rate is and how much variable rates have changed plus the term remaining on your fixed rate. However, you may discover that the savings you receive from refinancing could be more than the break fees you will incur. Before making any decisions, speak with your current lender about what break costs are involved to ensure these costs do not outweigh the benefits of refinancing.
<ul>
<li>I was approved for my current home loan, so I’ll be approved for a refinance</li>
</ul>
Many borrowers make the mistakes of assuming they will be approved for a refinance home loan because they were approved for their current loan.
When you apply to refinance, you will go through the same application process. The lender will look at your current financial situation and this may cause problems if you have taken on more debt since taking out your current loan.
The value of properties generally increase over time, but you may find that the value of your property has actually gone down. Research property values in your area to help ensure that you have sufficient equity to refinance.
The new lender will most likely get a valuer to inspect the property. A property in bad repair, termite damage or a partially completed renovation could mean that the new lender is not willing to use the property as security for the new loan.
Gavin Smith is director and general manager of <a href="https://www.statecustodians.com.au." target="_blank">State Custodians</a> and has over 20 years’ experience in leadership roles within the banking services sector.
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Five myths that may have stopped you from refinancing

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GUEST OBSERVATION
How long could you survive financially if you lost your job, suffered a major illness or encountered some other life set-back?
How high could interest rates rise before your loans became a worry? If you saw a great investment opportunity, would you be in a position to raise the finance to buy it?
Now is the ideal time to talk to your financial advisors about how to build your financial resiliency. There are a number of ways you can maximise your cash flow to hedge against unplanned events and it is important to get the right advice about strategies that best suit your specific circumstances. 
Here are some ideas to explore:
<ol>
<li>You can often build a cash buffer to tide you through hard times and reduce non-deductible interest on your mortgage by using an offset bank account instead of paying extra on your mortgage. </li>
<li>Keep an eye on the interest you’re paying on your debts. Make sure your interest rates are competitive. If they’re not, speak to your bank’s customer team about a discount. </li>
<li>If you’re negatively geared, you can arrange to reduce the amount of tax that is taken out of your pay each week rather than waiting for a big end-of-year refund. You can find the tax withholding variation form online. </li>
<li>While Australia’s new credit reporting regime means it’s more important than ever to pay your bills on time, you don’t get any bonus for paying them early. Set up a reminder system so that you pay accounts a few days before the deadline, rather than as soon as you receive them. </li>
<li>Don’t forget to claim depreciation even if you own an older property.  </li>
<li>Be organised – if you can’t find receipts at tax time, you can’t claim the expenses. One way to make this easier is to get your property manager to pay your rates, land tax bills etc so they’ll be included in the statement you receive at the end of each financial year. </li>
<li>If you have a partially paid-off investment property, do the sums to see if there is any benefit in refinancing to a fresh 30-year term. Although your monthly repayments could fall, you will end up paying more interest over the life of the property. </li>
<li>Consider the pros and cons of going from principal and interest loans to interest only, particularly for mortgages on investment property. </li>
<li>Regularly check the rent you’re receiving against the market and consider whether there is scope to raise it. </li>
<li>Ask tenants if there’s anything you could add to the property that they would be happy to pay more rent for – there could be a win-win improvement to be made such as the addition of a dishwasher or air conditioner. </li>
<li>Creative ways to increase cash flow can include adding a granny flat, allowing pets, furnishing a property or renting “by the room”. If you’re considering going down one of these paths, it’s essential to do the maths, check with the local council as different regulations apply, and make sure you take out appropriate insurance. </li>
<li>While it’s tempting to renovate a property to add value and rental returns – especially if you can do so cheaply – many fail to recoup their investment so careful consideration is worthwhile. </li>
<li>It’s not rocket science but, by cutting your spending, you will have greater cash flow and build assets more quickly. All the usual savings tips come into play, from making your own lunch to ditching the gym membership in favour of a pair of jogging shoes. </li>
<li>Similarly, look for ways to increase your income by taking in a housemate or boarder or taking on a second job. </li>
<li>Make sure you have appropriate life and income protection insurance, to avoid yourself or a loved one being forced to sell assets quickly. This is even more critical when you don’t have much of a cash buffer. </li>
<li>Protect your property investment and rental income by using an experienced property manager and taking out quality landlord insurance – shop for value not just price as standards and inclusions vary significantly. Don’t forget to regularly raise your sum insured to account for rising building costs, and to cover any renovations or improvements you have made. </li>
</ol>
Sharon Fox-Slater is the General Manager of EBM Insurance Brokers’ <a href="https://www.rentcover.com.au/" target="_blank">RentCover </a>landlord insurance division.
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