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]

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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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A system error contributed to a series of incorrect investment income payments to NAB Wealth investors between 2006 and 2012.
After paying $1.9 million in compensation to around 43,000 customers in 2012, NAB Wealth has identified that further refunds are required to adequately compensate impacted customers.
NAB Wealth has also appointed PricewaterhouseCoopers to review the matter, at the request of the Australian Securities and Investment Commission (ASIC). The firm will look into the compensation already paid, NAB Wealth’s operating systems and the company’s breach identification and management processes.
The superannuation funds affected by the errors are MLC Superannuation Fund, DPM Retirement Service and Premium Choice Retirement Service. Investor directed portfolio services MLC Navigation Investment Plan, DPM Investment Service and PremiumChoice Investment Service were also affected.
ASIC has told NAB Wealth customers that they do not need to lodge claims for compensation as affected customers have already been or will be identified and offered compensation. 
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Investor alert: NAB Wealth to refund investors after payment errors

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Bendigo and Adelaide Bank has agreed to purchase the business and assets of Victoria’s Rural Finance for $1.78 billion as its shares went into a trading halt ahead of a capital raising.
The purchase of Rural Finance Corporation of Victoria was formalised today with the Victorian state government.
Its loan book has an estimated value of approximately $1.695 billion, at the proposed completion date of July 2014.
The acquisition is subject to APRA approval.
The Victorian government, which will release its state budget tomorrow, will receive a net return of around $400 million in the deal. According to Treasurer Michael O’Brien, the proceeds of the sale will be earmarked for productive infrastructure investments in rural and regional Victoria. The decision to sell the Rural Finance Corporation was influenced by the introduction of financial incentives through the Commonwealth asset recycling scheme.
 “The Commonwealth’s financial incentives for the recycling of state assets into productive new infrastructure will further support our record infrastructure investment program,” said O’Brien.
 “We welcome the Commonwealth government’s asset recycling initiative, which has been an influential factor in the decision of the Victorian Coalition government to divest RFC.”
The bank has a presence in 11 locations across Victoria. The new deal will also give Rural Finance Corporation customers access to the bank’s 276 branches state wide.
“Rural Finance will work together with our existing specialist agricultural business, Rural Bank, to serve more than 5,200 farmers across Victoria – with a loan book in excess of $2.4 billion,” Bendigo and Adelaide Bank managing director Mike Hirst said.
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Bendigo and Adelaide Bank purchasing Victoria’s Rural Finance Corporation for $1.78 billion

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BitCoinCloudMining.com has launched, making it Australia’s first global bitcoin mining cloud service.
Cloud mining consists of a customer leasing mining hardware capabilities through a cloud based service.
According to the company, BitCoinCloudMining platform has been designed to reduce complexity for investors and offer the easy creation of a passive bitcoin income without incurring the cost of mining hardware and operations. Its website claims it is the “world’s most affordable bitcoin mining company”.
The platform is a key business in the operations of the Bitcoin Corporation (BTC Corporation), founded by Australian digital media pioneer and entrepreneur Domenic Carosa. The specialist bitcoin investment group also includes <a href="https://buyabitcoin.com.au/" target="_blank" rel="nofollow">BuyaBitcoin.com.au,</a> where Australian users can buy the currency with further bitcoin-based products and services in development for the online interactive gaming industry.
“Bitcoins are changing the way we live, transact and do business. The digital economy has removed the traditional restraints of geographic boundaries with the rise of bitcoin currency facilitating the evolution and growth potential of both private and commercial transactions in ways that the market has not yet conceived,” says Carosa.
A recent report by investment firm Wedbush Securities estimates more than US$200 million (A$215m) was spent on bitcoin mining equipment globally during 2013, with the utility costs of running the equipment continuing to rise.
Carosa says the entry of BitCoinCloudMining.com provides relief from these rising operating costs for individual bitcoin miners by removing the overheads from the process and delivering simple access and an easy to use interface to the bitcoin process.
BTC Corporation chief executive Simon Oliver says as an early adopter of the bitcoin technology, the Australian market also provides an accommodating regulatory ecosystem.
“The recent launch of Australia’s first bitcoin ATMs is a promising sign the market is seriously embracing this new digital currency,” Oliver says.
There are already a number of established global bitcoin mining cloud services in the market.
This article first appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartUpSmart</a>.
Photo courtesy of Antana/Flickr/<a href="https://creativecommons.org/licenses/by-sa/2.0/" target="_blank">Creative Commons</a>.
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Australia’s first bitcoin mining cloud service launches

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Commonwealth Bank customers will be the first in Australia to be able to withdraw cash from ATMs using only their smartphones.
From May, customers will be able to use their Commonwealth Bank app on an Apple iOS or Android smartphone to withdraw up to $200 cash in one transaction per day. The plan follows the development of ‘Tap &amp; Pay’ technology, and is designed to give customers access to cash when their card isn’t available.
Michael Harte, chief information officer at the Commonwealth Bank, said in a statement demand for contactless and mobile payments is on the rise.
“Mobility is not a trend,” he said. “It is increasingly our way of life. These new mobile offerings will improve our customers’ banking experience by placing information-rich, value-added services and additional security at their fingertips at the time they need our help.”
More than 2.3 million users have registered to use the revised CommBank app since its launch late last year.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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CBA customers to withdraw cash using smartphones

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GUEST OBSERVATION
You may assume purchasing property is like riding a bike; once you buy your first property, it’s easy to just repeat this when you purchase again. But this isn’t always the case.
Depending on how long it has been since your first home purchase, a lot may have changed in the property and lending industry. So what things do you need to consider before purchasing your second property?
<ol>
<li>
Deposit Most first home buyers struggle with saving for a deposit and you may even remember how difficult it was. But this time around, it may be a little easier. As this is your second property, you may have either the proceeds of the sale of your last property, equity in another property or savings. If you are in a good equity position, it may mean that you will be able to borrow 80% or less of the purchase price, meaning you will avoid paying extra on lenders mortgage insurance. However, when applying a home a loan, remember you need to show a combination of both equity and income to be able to meet repayments 
</li>
<li>
Finances If you require a home loan for your second property, the process is similar to taking out a loan for your first home. When you start shopping for a home loan, you will need to have the following details at your fingertips to enable lenders to assess your situation: • Selling price of your existing home (if you are selling one). • Selling costs not yet paid (agent’s commission &amp; costs, legal fees, adjustments at settlement). • Payout figure for your existing home loan (amount owing plus any exit fees). • The annual incomes of the borrowers purchasing the home. • Income from investment properties. • Details of any regular commitments that are not included in standard living costs such as child maintenance, private school fees, childcare costs, contractual obligations to make regular payments like pay TV. • Combined credit card limits. This is the total of the maximum debt that you could draw your credit cards, including any interest free accounts that haven’t been closed down. • Details of any other debts – amounts owing and payments being made. • The number of dependents that you have. • The values of any other property or investments that you have, and whether or not those investments could be sold to help fund the purchase of your new home. • Balance of savings that will go towards the purchase. 
</li>
<li>
Finding a property Even if you only bought your first home recently, you will still need to research the property market carefully as it can change quickly. Areas that may have been considered a hot spot last year may no longer be considered a hot spot this year. This is why you need to do your research on areas that are developing and monitor population growth and housing demand. Also, if this second property is going to be an investment, remember, you are not looking for a property that will suit your needs. So, the location and type of property could very well be completely different to a home you want to live in. 
</li>
<li>
Management of Extra Costs If you are purchasing a second property as an investment, then money management will be extremely important. This purchase will have a big impact on your budget, so you will need to make sure you can handle it. It is important that you have enough income to cover mortgage repayments for all of your properties. Although the rental income can be used to help pay off the loan, you may experience vacant periods and will have to produce the money for repayments from another source. The more properties you purchase, the easier the process should become. However, it does not mean you should stop doing your research.
</li>
</ol>
Heidi Armstrong is the CEO for <a href="https://www.statecustodians.com.au/home-loans" target="_blank">State Custodians Mortgage Company</a>. Heidi is an expert in personal finance, securitised lending and the mortgage industry and is passionate about educating borrowers to help make smart lending decisions.
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Four things to check off your list when buying your second property

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Australian banks are more fearful of the prospect rising interest rates could reduce their customers’ ability to repay home loans, an international PricewaterhouseCoopers' (PwC) survey has revealed.
The high exposure of banks to the home mortgage market has seen interest rate risk move from 30th on a 2012 list of concerns for banks to currently sixth place.
The international PwC biennial survey had interest rates ranked as the 12th biggest concern ­globally. Regulation and political interference topped the list of risks among the global banking industry replacing 2012’s leading threat, the macro-economic environment.
A breakdown of global responses shows respondents (bankers, observers and risk managers) had the highest concerns about regulation and politics within Europe and North America. The top concerns in the Asia Pacific region focused more on the macro-economy and the risk of sharp changes in interest rates.
Banking professionals are particularly anxious in Singapore, Malaysia and Turkey. 
China remains on top of the most important business growth markets globally, though concerns about increasing tax burden and the lack of stability in the capital market, according to PwC with 33% of 1,344 global CEOs from 68 countries believing that China ranked as the most important growth market for their corporations this year.
PwC’s Australian head of financial services, Hugh Harley says the major reason for the local ­sensitivity about interest rate moves was their housing loan book accounted for about 60% of the banking sector’s total credit commitments, compared with 30% a generation ago.
Barclays chief economist Kieran Davies estimated that Australian household debt was 177% of annual disposable income.
Lending to households has been the biggest contributor to the bank profits since the financial crisis, with investment bank UBS, recently finding total profits from retail lending for ANZ, Commonwealth and Westpac banks had doubled from $3.5 billion in 2007 to $7 billion in the 2013-14 financial year. 
Clime Asset Management’s chief investment officer, John Abernethy, told the Australian Financial Review “when we see a correction in housing prices, higher interest rates, and a lack of capacity to repay back loans quickly – you can get whiplashed dramatically in the banking sector”.
The current thinking as seen stockbrokers sounding caution on bank share prices ahead of half-year profits, with Bell Potter director Charlie Aitken downgrading his recommendation on the big banks to “hold”. One reason was that he considered the stock market surge in bank stocks by investors seeking out attractive dividend yields, and spurred on by record low interest rates, had possibly reached its peak.
The ASX 200 bank index has risen 50% over the past two years with Charlie Aitken noting the yield on big bank stocks was now about 5%.
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House price correction could trigger Australian bank sector whiplash

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GUEST OBSERVATION
For many of us, the hardest part about buying a property is saving for a deposit.
Generally when buying a property, whether it be established or off the plan, the minimum deposit you will need is 10%. This means if you are looking to buy a property worth $600,000, you will need to save up a minimum of $60,000. You’ll also need some additional cash to pay some legal fees, stamp duty and potentially building and pest inspections if buying established.  It’s also beneficial to have some extra cash as a buffer for personal emergencies – it may be something as simple as having to repair your car.
So how do you save $60,000? It’s a lot of cash!
Depending on how much you're earning, if you really want to buy a property then you need to scale back your spending. The sooner you do it the better. For those that are still in their 20s, now is the best time to start. It may mean having one less drink with your friends a week, one less restaurant meal a week or one less overseas holiday. It’s not a big sacrifice and all the savings can add up quickly. If you smoke, consider quitting – not only is it going to be good for you from a health perspective, it’s going to save you thousands of dollars a year! You’ll also probably spend less time at the bar too which means you’ll save on those expensive cocktails.
Saving for a home is all about discipline. Knowing what you want to achieve and then creating a plan to get there. For double income earners, it should be pretty easy to save for a home. Learn to live off one salary and save the rest. This way you could save the $60,000 in a few years.
For example, if you were in a relationship and were earning $50,000 + $75,000, your total household income would be $125,000. Your after tax income is $42,000 and $58,000, making a total of $100,000 in after tax income.  Taking a generous $50,000 for living expenses, plus total rent of $25,000, gives you total expenses of $75,000 after tax.
This means you should be saving $25,000 per year. Within three years you’ve hit $75,000 and are ready to buy your property!
So some of you may be saying that you can’t find a suitable property to rent for $25,000. If you earn a higher combined income then put some additional money towards the rent – but remember, rent money is dead money unless you are investing in property on the side using your savings. This is another strategy which you may want to consider. If you really want to only spend $25,000 a year, then move to a less desirable property, location or look to share with some friends. Two couples spending $500/week gets you a $1,000/week property – your money can go a long way with this sort of budget!
Eight tips for saving to buy a property
<ol>
<li>Leave home a little bit later. If you can earn a salary and stay at home for a couple years, you could save yourself some serious rent money. 
</li>
<li>If you have to move out of home, look to share a flat with a friend. Don’t overpay and learn to live in something that isn’t perfect but will help you save for your end goal. 
</li>
<li>Earn a salary. Have work pay you into a savings account and then have it auto transfer a weekly allowance for you to live on. Make sure you include a little extra than you think you will need and learn to save in this transaction account too. This will help with surprise expenses such as upcoming birthday and Christmas presents along with other expenses such as dentist, doctors, mechanic, etc. 
</li>
<li>Cut back on extras – if you’re in two minds about buying a pair of shoes, a new handbag or the latest watch, pass on the opportunity and put those funds into your saving account. 
</li>
<li>If you have moved out of home already, consider moving back for 12 months if the opportunity is available – it’s a quick way to double your savings and save that deposit. 
</li>
<li>Saving is important but knowing what to do with your savings is even more important – move it around and put it in high interest earning accounts. As your savings build up the interest you earn can become substantial! Use term deposits and high yielding shares as a possible way of further increasing your savings. 
</li>
<li>Credit card debt is a big no – if you currently have it, get rid of it ASAP. Transfer it to another card with a special promotion and look to pay 0% interest for six months of the balance transfer – then make sure its paid off in that time. There is no excuse for credit card debt! 
</li>
<li>Everyone buys stuff – now it’s time to sell stuff – look through the cupboards and see what you can sell on eBay. Most couples could quickly find a few thousand dollars of ‘stuff’ they don’t really need. Sell it and put it straight into your savings account.</li>
</ol>
Mark Mendel is founder and CEO of <a href="https://www.ibuynew.com.au/" target="_blank">iBuyNew</a>. 
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Eight tips for saving to buy a property

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While capital growth stories can give us a boost of excitement, negative equity is not a fun topic. A worrying state to be in, negative equity is when you owe more than you own on a property. That is, your equity is tipping on the other end of the scales and if you sell today for its market value, you will walk away not just empty handed but still owing.
It may not be as often talked about, but it can happen. Late last year, for instance, some <a href="/news/some-7-1-million-residential-homes-in-the-us-still-facing-negative-equity-corelogic">7.1 million residences were still facing negative equity in the United States</a>. In December 2011, the number of <a href="/expert-insights/investing/negative-equity-hurting-mcmansion-owners-but-most-home-owners-needn-t-worry">home owners facing negative equity was sitting at around 6% in Australia</a>, according to RP Data statistics.
How it happens
Negative equity can happen in a number of ways, however the three most simplest explanations are as follows.
<ol>
<li>A drop in the market If you buy at the upper end of the market, and it then drops, you may find yourself in negative equity on your home. This is quite common in faster moving markets, such as mining towns. 
</li>
<li>You've overpaid in the first place Whether you've been convinced into it by unscrupulous marketeers, or you've entered auction overemotionally and under prepared, you may have committed to spending too much. While a bank valuation will usually stop the mortgage from taking place, this isn't always the case. 
</li>
<li>The asset has been ruined in some way Whether it's an uninsured house fire, or damage from some other situation, this can also add to a loss in value.</li>
</ol>
A combination of the above can spell disaster for any property owner.
What to do if you're in this situation
If you end up facing this, then there are a few things you can do.
<ul>
<li>Check whether it's time to sell: First things first - is the market expected to drop further and soon? If it is, you need to cut your losses and sell as quickly as possible. Don't get yourself in a worse situation by holding on to a failing asset. If it's a $20,000 shortfall then it is better than facing a $50,000 shortfall. 
</li>
<li>Consider renovating: If you have money leftover, consider renovating the property to increase the value. This is not suggested for first time renovators without much concept of adding value, however if you can spend wisely and in visible areas, you may just be able to push the value up to get it over the line for a sale. 
</li>
<li>Move in to the property or weather it out: While not always an option, some facing this situation will see themselves selling their home and moving into the investment property to batten down the hatches and pay down some debt. Similarly, if it's currently tenanted and not too draining, and the market isn't expected to fall further, you may want to batten down the hatches and continue paying it down until you bring yourself into a better situation. 
</li>
<li>Pay it down as best possible: Is there anything you can sell to bring the scales back into your favour? Pour funds into the mortgage to help reduce the amount owing on the property.
</li>
</ul>
How to prevent it in the first place
<ol>
<li>Put down as much as possible into the property as a deposit. The more money you put into the home in the first place, the bigger the safety net for you. While you will still have lost money, through your deposit being eaten up, you can walk away without the debt at the end. There's a reason lenders have LMI for when borrowers take on high debt levels, and it's not to protect you but themselves. 
</li>
<li>Keep an eye out for market movements. Be clear on whether there is likely to be an upcoming downturn in your area's property market. Don't act on the basis of panic, but don't be suckered in to the "never sell" mantra if you can act before a downturn. 
</li>
<li>Buy at a discount. While not always possible, and certainly not easy, having a mortgage for less than the amount the property is worth in the first place can certainly mitigate your risk. Negotiate hard and never overpay. 
</li>
<li>Try to pay down debt. If you're paying interest only and using your funds elsewhere, ensure it's the best decision you're making. By increasing your equity you're effectively keeping the barrier higher against negative equity. 
</li>
<li>Buy in lower-risk locations. If you're not prepared to take the downturns with the upturns, then do not buy in higher risk areas.</li>
</ol>
YOU MIGHT ALSO WANT TO READ
Letter from the editor: <a href="/news/letter-from-the-editor-a-festive-season-and-a-sobering-experience">A festive season and a sobering experience</a>

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jduke-EHk3XBmHkn

What is negative equity and what can you do about it?

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When looking for a mortgage pre-approval, it isn't easy. There are many ways to go about it, and the last thing you would want is for the loan to fall through last minute - particularly if you're looking at buying at auction.
At the end of last year, an increasing number of people were being reported as <a href="/expert-insights/investing/home-loan-approvals-soar-while-first-home-buyer-proportion-sinks">taking out pre-approvals and using it as a leg-up over competition</a>.
<blockquote>
Having pre-approval will enable you to know what you should bid up to at auction, what you can afford and where your limits are.
</blockquote>
However, Property Observer knows of a number of cases where buyers, confident that they can achieve a certain loan, head in and find their finance fallen through. Don't let this happen to you.
First up, a recommendation is to always look to get formal approval, rather than pre-approval, for auction. Pre-approval is generally most useful when you can offer a conditional contract on the basis of a valuation, inspections and similar.
What is pre-approval?
Think of pre-approval like reserving yourself a seat at a restaurant. You know you're going to want one, but you're not quite there yet. If you book, and provide plenty of information in advance, then you're likely to secure yourself a seat. If, however, you book for three people rather than five, or for the wrong time, you're going to find yourself without your venue of choice. Similarly, you may get there and find that there hasn't been a seat reserved for you after all or that your own circumstances have changed.
Pre-approvals for mortgages work in a similar way. You can head in to a lender, and fill in information, and then you will be provided a suggestion of your borrowing limit with conditions. You may later find that the pre-approval didn't have as much information as it needed to be accurate or that the property you're looking at doesn't stack up.
Why get pre-approval?
Having pre-approval will enable you to know what you should bid up to at auction, what you can afford and where your limits are. It will also give you a boost of confidence when negotiating a property.
Michelle Hutchison, money expert for Finder.com.au, explained to Property Observer that readers should look to get this done as early in the buying process as possible as it can help speed it up.
"I've seen people who have missed out on buying the home of their dreams because they couldn't make an offer in time as they didn't have pre-approval. Real estate agents will also take you more seriously because having pre-approval means you are essentially ready to buy," said Hutchison.
Century 21 Homes Loans WA, Harry Bozin, said that it can be<a href="/expert-insights/finance/why-you-should-secure-finance-pre-approval-before-looking-for-property"> powerful for pushing a vendor in the right direction</a>.
"In addition to enabling an investor to narrow the property search within a purchase budget, loan pre-approval could also provide increased price bargaining power with vendors, who might be willing to accept a lower price than was advertised with the knowledge that the transaction is already backed by secure finance – particularly in cases where a vendor is looking for a quick and hassle-free sale," he explained.
However, not all of them are the same.
Different pre-approval versions
Mortgage Choice head of corporate affairs Jessica Darnbrough told Property Observer that home loan pre-approvals are definitely worth considering.
"As a general rule of thumb, pre-approvals are valid for at least three months," she explained, although some vary. Commonwealth Bank's pre-approvals, for instance, are noted online to be valid for six months. After this time, you repeat the process and get another pre-approval.
"Some lenders only require potential borrowers to complete a short form in order to gain pre-approval, while others require a significant amount of information and documentation to provide a formal written pre-approval," said Darnbrough.
"To be sure of your borrowing capacity, a potential buyer should secure a formal pre-approval."
<blockquote>
"As a general rule of thumb, pre-approvals are valid for at least three months." - Jessica Darnbrough
</blockquote>
A formal pre-approval means more than just getting it done online. A five minute questionnaire and no follow up before being given an indication should not set your mind at east. Savvy borrowers will want to make sure that the pre-approval is a true indication of what they can purchase.
Hutchison explains that some will provide pre-approval within a 48 hour turnaround, while others can take longer. You will need to be ready in advance, especially if there is an enticing auction coming up.
"Borrowers can slow down the process if they don't have all of their paperwork in order, which means the lender will go back and fourth with the applicant to complete the application," she explains.
Paperwork you need
Pretend you're going for the final mortgage discussion, and replicate the paperwork you will need at that point. The more you can provide, the less back-and-forth there will be and the more comprehensive and accurate your pre-approval will be.
Bring:
<ul>
<li>Copies of your bank statements 
</li>
<li>Savings history for the past three to six months (minimum) 
</li>
<li>100 points of ID 
</li>
<li>Any proof of assets (eg council rates for any property you own) 
</li>
<li>Employment verification and payslips 
</li>
<li>Tax returns (particularly if self-employed) 
</li>
<li>Other proof of income (such as rental income proof through a lease document)</li>
</ul>
With these details, and some general information around whether you're buying new or looking to build, the lender will then look to verify the information. They will undertake a credit check and they'll also look to ensure there's nothing that could change your situation, such as reduced hours.
How useful is pre-approval?
It can be a powerful tool to have, and if you have time it's worth getting pre-approval done, however you still would not necessarily want to enter into an unconditional contract. A valuation on the property you are looking at, as well as the final say-so in regards to achieving finance will likely both be needed. This can mean that, despite having the pre-approval, you may still not be able to purchase the property.
Pre-approval can also help bring up any problems you hadn't prepared for. Perhaps you can't borrow as much as you had been hoping due to a bad mark on your credit file you hadn't prepared for. Either way, this can quickly alert you before you get yourself stuck into a contract.
<blockquote>
DISCUSSION POINTS:
WHAT HAVE YOUR EXPERIENCES WITH PRE-APPROVALS BEEN LIKE?
HOW USEFUL IS THIS DOCUMENT?
AT WHAT POINT IN THE BUYING PROCESS DO YOU OBTAIN ONE?
</blockquote>
Similarly, there can be problems with looking for obtaining pre-approval multiples times, warns Hutchison.
"Obtaining pre-approval is part of the application process, which means it will be recorded on your credit file every time you apply. This can have a negative impact on your credit file if you apply for too many home loans in a short period of time," she said.
Lastly, don't expect to get the same pre-approval from each bank or six months later.
"In regards to experienced investors: many often believe that because they have gained finance approval in the past that they will automatically be granted the same in the future. It is important to note, however, that this assumption is incorrect, as the lending criteria of banks changes constantly, meaning that investors can cease to qualify for loans despite their situations remaining unchanged," said Bozin.
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A quick guide to home loan pre-approval

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Housing finance data for February 2014 was released yesterday by the Australian Bureau of Statistics (ABS).
The data showed that over the month there were 52,460 owner occupier housing finance commitments.
<img class="aligncenter size-full wp-image-3092" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-1.jpg" alt="Chart 1" width="500" height="179">
The number of owner occupier housing finance commitments was at its highest level since October 2009 over the month.  Owner occupier housing finance commitments increased by 2.3% over the month and 13.8% year-on-year.  Owner occupier housing finance commitments are split into refinance commitments and non-refinance commitments. 
Refinance commitments have increased by 6.0% over the month and 15.8% higher over the year.  Non-refinance commitments rose by 0.6% over the month and by 12.9% over the year.  Refinance commitments are currently at their highest level since April 2008.
<img class="aligncenter size-full wp-image-3093" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-2.jpg" alt="Chart 2" width="500" height="183">
Looking at the value of housing finance commitments, owner occupier non-refinance commitments are up 0.3% over the month, owner occupier refinance commitments are 6.0% higher and refinance commitments are 4.4% higher. 
On a year on year basis, owner occupier non-refinance commitments have increased by 17.5%, owner occupier refinance commitments are 27.9% higher and investment finance commitments are 32.3% higher.
<img class="aligncenter size-full wp-image-3094" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-3.jpg" alt="Chart 3" width="500" height="183">
As a proportion of all housing finance commitments over the month, owner occupier non-refinance commitments accounted for 43.4% of lending, investment commitments accounted for 38.8% of lending and owner occupier refinance commitments accounted for 17.8%. 
As the chart shows, the proportion of lending to investors is high on an historical basis and remains at their highest levels since late 2003.
<img class="aligncenter size-full wp-image-3095" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-4.jpg" alt="Chart 4" width="500" height="185">
As a proportion of all lending to owner occupiers, first home buyers continue to show a relatively small level of market participation.  In February 2014, first home buyers accounted for 12.5% of all lending to owner occupiers.  The 12.5% was down from 13.2% in January 2014 and also down from 14.4% at the same time in 2013. 
Although the proportion of lending to first home buyers is lower, the number of first home buyer loans was 0.6% higher over the month but -1.5% lower year-on-year.
<img class="aligncenter size-full wp-image-3096" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-5.jpg" alt="Chart 5" width="500" height="219">
The RP Data Mortgage Index (RMI) shows a strong correlation with the ABS owner occupier housing finance commitments data. 
The benefit of the RMI is that it is a more timely indicator of finance commitments produced each week. 
At the end of March 2014 the index had recorded a further increase in activity indicating that the housing finance data results for March 2014 (when released in a month’s time) are likely to show a further rise in owner occupier housing finance commitments.
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