<p data-end="587" data-start="368">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.</p>

<p data-end="778" data-start="589">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.</p>

<p data-end="907" data-start="780"><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.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">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.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">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.</p>

<p data-end="1908" data-start="1678">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.</p>

<p data-end="2142" data-start="1910">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.</p>

<p data-end="2142" data-start="1910"><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" /></p>

<p data-end="2308" data-start="2144">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.</p>

<p data-end="2648" data-start="2310">"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.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">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.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"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."</p>

<p data-end="3818" data-start="3664">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.</p>

<p data-end="4076" data-start="3820">"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.</p>

<p data-end="4375" data-start="4078">"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."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"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."</p>

<p data-end="4910" data-start="4743">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.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


Joel Robinson

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

<main data-perf-region="main">
<p data-end="600" data-start="394">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.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">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.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">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.</p>

<p data-end="1357" data-start="1161">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.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">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.</p>

<p data-end="2269" data-start="2047">"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.</p>

<p data-end="2430" data-start="2271">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.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">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.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"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.</p>

<p data-end="3400" data-start="3216">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.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

<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

<p>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.</p>

<p>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.</p>

<p>Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374005]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374010]</p>

<p>Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.</p>

<p>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.</p>

<p>“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.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374002]</p>

<p>“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.”</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=150999]</p>


Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">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.</p>

<p data-end="717" data-start="537">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.</p>

<p data-end="918" data-start="719">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.</p>

<p data-end="1131" data-start="920">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.</p>

<p data-end="1131" data-start="920"><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" /></p>

<p data-end="1318" data-start="1133">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.</p>

<p data-end="1433" data-start="1320">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.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">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.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><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" /></p>

<p data-end="2191" data-start="2013">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.</p>

<p data-end="2365" data-start="2193">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.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“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.”</p>

<p data-end="2943" data-start="2777">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.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>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.</p>

<p>Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.</p>

<p>While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;</p>

<p>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>.</p>


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

Finance

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<p>DomaCom, a fractional investment platform, has rolled out a new model for seniors’ equity release that takes a different approach to the reverse mortgage model or Government Pension Loan Scheme.</p>
<p>According to the company, instead of raising a debt where the interest is capitalised against the property like a reverse mortgage, “the fractional model is a shared equity structure, meaning that seniors can sell part of their property to one or more investors while remaining in the property for as long as they want.”</p>
<p>“It is an ASIC-registered financial product that operates in similar fashion to a syndicate,” said DomaCom Marketing Manager, Warren Gibson.</p>
<p>“The only difference is that the title stays with the owner, and DomaCom protects the investors’ interest with a mortgage instrument over the property. When the senior decides to sell the property, the investors will receive a share of the net sale proceeds in proportion to the amount they invested.”</p>
<p>DomaCom has launched a campaign to gather expressions of interest from seniors “who would prefer to access equity in their home instead of raiding their superannuation or selling other assets.”</p>
<p>The company is hoping that demand from seniors may also fuel interest in funding equity release by some of Australia’s larger financial institutions, as well as bring the senior financial advice demand to the fore for financial planners and government.</p>
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j.ballantyne1990-6AQqhLzZaK

New solution unveiled for seniors looking to raise funds

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<p><span>CoreLogic has announced the appointment of Milena Malev as the new general manager of banking and finance solutions Australasia.</span></p>
<p><span>Ms Malev has joined CoreLogic from ANZ where she was head of general insurance business.</span></p>
<p><span>In the ANZ Lenders Mortgage Insurance business Ms Malev headed up the Portfolio Strategy team leading customer segmentation strategy, pricing and the reinsurance strategy. At ANZ Wealth, she was the head of retirement solutions driving the vision and strategy for the Retirement segment.</span></p>
<p><span>Prior to joining ANZ, Ms Malev was a project director for the Westpac Group focusing on Basel II accreditation post the Westpac and St George merger and </span><span>implemented an instant credit decision platform for Westpac’s unsecured </span><span>lending. </span></p>
<p><span>Earlier in her career, at Veda Advantage (Equifax), she focused on data analytics and credit decisioning system design for global financial customers and credit bureaux in Europe and Australasia.</span></p>
<p><span>In her new role, Ms Malev will oversee all aspects of CoreLogic’s banking and finance </span><span>product and solutions development with the goal of further growing the leadership footprint in Australia and New Zealand by supporting clients to address their day-to-day challenges.</span></p>
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<p><span>In closing, CoreLogic CEO International Lisa Claes said, “We’re extremely pleased </span><span>to have Ms Malev join the CoreLogic Australasia product solutions and leadership </span><span>team to help bring our clients to the forefront of transformation. Ms Malev’s past </span><span>experience coupled with her deep industry knowledge underscore the commitment to providing the most impactful and innovative solutions for </span><span>clients.”</span></p>
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Milena Malev appointed as general manager of banking and finance solutions Australasia: CoreLogic

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<p>Buying your first home can be both exciting and overwhelming – especially once the first mortgage bill comes through. However, for many buyers, the purchase of a property can be one of the most rewarding and valuable investments of their lives. If you've just bought your first property and are feeling nervous about the 20-30 year tenure of mortgage payments, we've compiled a simple guide with some tips that could help you to pay down your mortgage debt faster. </p>

<p>From negotiating new home loan rates to using an offset account or using savvy budgeting techniques, here are 23 ways you could secure a mortgage-free lifestyle sooner. </p>

<h2><strong>1. Purchase a home you can afford</strong></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/shutterstock_1141644755_0.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/shutterstock_1141644755_0.jpg?itok=v0faBBD6" width="580"></a></figure><p>Look to <a href="/guides/how-much-should-you-spend-on-your-first-house-in-2020"><u><strong>purchase a home you can afford</strong></u></a>, as often you'll be required to attain prequalification first. Prequalification means your bank will investigate your financial circumstances and determine <a href="/guides/how-much-can-i-borrow-for-a-new-home"><u><strong>the loan that is most suitable for you</strong></u></a>. </p>

<p><em>Some questions to help determine whether you’re eligible or ready to take on a home loan are: </em></p>

<ul>
<li>Will you be debt-free for three to six months?</li>
	<li>Are you able to provide a 5%-20% down payment?</li>
	<li>Can you afford to take out a 15-30 year fixed-rate loan?</li>
	<li>Is the home repayment 25% less than monthly take-home pay?</li>
	<li>Are you financially able to cover the fee moving expenses and leaving your current residence? </li>
	<li>Can you afford the ongoing maintenance and utility bills for this home?</li>
	<li>Do you have enough funds saved for any emergencies? </li>
</ul>
<h2><strong>2. Consider refinancing your home loan</strong></h2>

<p>Renegotiating your current home loan rate with your mortgage lender, or shifting your home loan to a lender who offers a lower interest rate, may result in cost savings and could help reduce the tenure of your mortgage.</p>

<h2><strong>3. Consider an offset account</strong></h2>

<p>[smartcode_project:default project_id=7275]</p>

<p>An offset account is a savings or transaction account linked to a home loan account. The balance of the account is “offset” daily against the home loan balance, and therefore you are only charged interest on the difference between the total loan balance and the amount offset.</p>

<p>The money held within an offset account is not regarded as taxable income, as the account does not generate interest, which is beneficial for people who deposit large sums of money into the account.</p>

<p>Depositing money into the offset account with extra income from other sources of income such as bonuses and profits from investment can also help lower your interest repayments, as well as contribute to paying off your mortgage sooner. </p>

<p>Depending on the lender the money within the offset account also can be withdrawn twice or more in a year with <u><strong><a href="https://www.yourmortgage.com.au/home-loan-guide/redraw-facility-explained-with-tips-to-lower-your-mortgage/79077/">some lenders charging up to $50 per withdrawal</a></strong></u>. </p>

<h2><strong>4. Consider refinancing your home loan</strong></h2>

<p>Renegotiating your current home loan rate with your mortgage lender, or shifting your home loan to a lender who offers a lower interest rate, may result in cost savings and could help reduce the tenure of your mortgage.</p>

<h2><strong>4. Keep your credit card debts manageable </strong></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-02-07_at_4.26.48_pm.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="383" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-02-07_at_4.26.48_pm.png?itok=0n7kFOF7" width="580"></a></figure><p>Aim to clear your credit card of debt each month, as the interest rates on your credit cards and personal loans are often much higher than the interest rate on your home loan. When you pay on time, you avoid paying extra interest or late fees and also help keep your credit score healthy.</p>

<p>Personal Loan: A personal loan sits between a home loan and a credit card loan, and provides a faster and easier process than taking out a mortgage. Unlike a credit card loan, to access the personal loan, you are also required to sign a formal contract. </p>

<p>Credit Card Rate: A credit card's interest rate is the price you pay for borrowing money. The interest rates, known as the annual percentage rate (APR) are stated as a yearly rate. With a credit card, paying interest on purchases can be avoided if the balance is paid in full each month by the due date. </p>

<p>Hire Purchase: Hire purchase is an arrangement for buying expensive consumer goods, in which the buyer provides an initial down payment and pays the balance plus interest in instalments. Hire purchase agreements state that the ownership of the merchandise is not officially transferred to the buyer until all the payments have been made.</p>

<h2><strong>5. Split your loan </strong></h2>

<p>You may choose to split your loan in half, with a portion fixed, and the rest variable. </p>

<p>A <a href="/guides/how-to-choose-the-right-home-loan"><u><strong>fixed-rate home loan</strong></u></a> ensures your loan repayments are charged at the same interest rate for the length of your loan period. If the loan is not repaid by the end of the period and you choose not to enter another fixed-term contract, the rate is reverted to a variable interest rate. </p>

<p>A <a href="/guides/how-to-choose-the-right-home-loan"><u><strong>variable interest rate</strong></u></a> is a loan where the interest rate charged on the outstanding balance fluctuates as market interest rates change. </p>

<p>To successfully split your loan in half you can contribute through fortnightly payments, a method which gives homeowners a sense of security as fixed payments will remain constant while variable payments will see interest rates rise and fall.  </p>

<h2><strong>6. Make repayments at a higher rate </strong></h2>

<p>[smartcode_project:default project_id=2439]</p>

<p>People that choose a loan which is set at the lowest interest rate available can add <a href="https://www.yourmortgage.com.au/home-loan-guide/24-ways-to-get-the-mortgage-monkey-off-your-back-faster/77843/"><u><strong>2-3 points to the repayment amount</strong></u></a>. For some, this may not make a drastic difference to their bank balance. </p>

<p>A good idea could be to align repayments with your pay cycle, prior to setting the amount you wish to repay each month. </p>

<h2><strong>7. Research into smaller lenders as well as big banks</strong></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/shutterstock_425326012_1.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/shutterstock_425326012_1.jpg?itok=xkgYwL2C" width="580"></a></figure><p>There was <a href="https://www.domain.com.au/money-markets/why-borrowers-are-turning-away-from-the-big-banks-863960/"><u><strong>a period in 2019</strong></u></a> where homeowners were turning away from four major banks [in Australia] in favour of smaller lenders, as they provided more competitive rates. </p>

<p>Small lenders have been found to sometimes compete more persistently for your business and provide more personalised service. These companies may also offer home loan options such as longer loan terms, lower ongoing fees and lower interest rates. </p>

<h2><strong>8. Switch lenders </strong></h2>

<p>Finding a home loan at a lower rate can help you save money. However, always make sure to do your research before switching lenders or loans types. Always make sure to understand the rates and features of the loan, and don't be afraid to tell lenders the exact portion of your income you're prepared to allocate to mortgage repayments. </p>

<h2><strong>9. Find a package deal </strong></h2>

<p><a href="https://www.canstar.com.au/home-loans/packaged-home-loans/what-is-a-package/"><u><strong>Package deals</strong></u></a> or package home loans combine home loans and financial products, which can provide fee waivers for a transaction or offset accounts. Sometimes banks may waive annual credit card fees, provide discounts on insurance, discounted or free financial planning sessions and even discounted share trading. </p>

<h2><strong>10. Watch out for lenders who offer gifts </strong></h2>

<p>[smartcode_project:default project_id=6798]</p>

<p>Introductory rates are commonly referred to as ‘honeymoon rates’, as lenders can try to convince homeowners to select a lower rate for a period of 1-2 years. Although once the honeymoon period has ended or the lender switches to a high variable rate of interest, the person is expected to pay for a much larger rate over the next 20 years. </p>

<p>Some lenders may also charge costly cancellation penalties for those who opt-out after utilising the honeymoon rates. Don’t be afraid to discontinue business with a lender who is no longer giving you the best service available. </p>

<h2><strong>11. Portable loans can make moving house easier</strong></h2>

<p>The average home loan is between 25 to 30 years, which is why it is quite common for people to move house whilst still paying off a loan. If you decide to move houses, a portable loan on your existing house that carries to your new property, can save you the inconvenience of refinancing. However, you should be aware of the regulations around buying and selling homes, as there may be <a href="/guides/how-much-does-it-cost-to-sell-a-house-or-apartment"><u><strong>additional charges for the old house</strong></u></a> and the <a href="/guides/top-10-hidden-costs-of-buying-a-house-or-apartment-in-2021"><u><strong>establishment for the new house</strong></u></a>.</p>

<h2><strong>12. Pay all your mortgage fees and the charges upfront </strong></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/shutterstock_701873641.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/shutterstock_701873641.jpg?itok=AzmNqrWE" width="580"></a></figure><p>When paying your mortgage fees upfront, it is sensible to pay with the money you already have, rather than borrowing money from the lender to pay fees and charges. </p>

<h2><strong>13. Pay your first instalment before it's due</strong></h2>

<p>The first instalment of your home loan may not be due for a month after the settlement. If your lender allows, you may be able to pay your first instalment on the settlement date, which can secure your position ahead of the lender for the term of your loan. </p>

<h2><strong>14. Pay off the principal</strong></h2>

<p>Every mortgage repayment you make attacks the capital which helps you pay a smaller amount of interest. <a href="/guides/how-to-choose-the-right-home-loan"><u><strong>You may want to avoid interest-only loans</strong></u></a>, as paying interest on your loan for a set period may result in the principal amount being charged at a higher propensity interest-only period.</p>

<h2><strong>15. Use your equity</strong></h2>

<p>[smartcode_project:default project_id=4939]</p>

<p>Equity is the difference between the current value of your property and the amount you owe the lender. If you have already paid a percentage of your home loan, then you would have equity. Some lenders will allow you to borrow money using your equity as collateral. <a href="/guides/how-does-equity-work-in-property"><u><strong>Using equity to improve your property</strong></u></a> also helps increase its value in the long run. </p>

<h2><strong>16. Discover what you could be entitled to</strong></h2>

<p>Some lenders <a href="https://www.homeloanexperts.com.au/waived-lmi/"><u><strong>may offer discounts and special conditions</strong></u></a> to those from specific professions, such as certified medical professionals. In these cases, a lender may waive or lend at a higher loan to value ratio before charging a Lenders Mortgage Insurance, which may provide you with a significant head start on paying off your loan.</p>

<h2><strong>17. Keep ahead of the game</strong></h2>

<p>Check the status of your <a href="/guides/how-to-choose-the-right-home-loan"><u><strong>home loan</strong></u></a> each year, as well as new home loan offers that you could be applicable for. <a href="/guides/housing-market-effect-on-wealth"><u><strong>Keeping yourself knowledgeable</strong></u></a> about this will help you to maintain a competitive mortgage rate, and avoid overpaying interest. </p>

<h2><strong>18. Budget</strong></h2>

<p>When trying to save money, a budget is a good way to organise your finances, balancing your home loan repayments as well as household bills. This will also help determine how much disposable income you have left over.</p>

<h2><strong>19. Know how much you’re spending on luxury items</strong></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/shutterstock_507639565_0.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="348" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/shutterstock_507639565_0.jpg?itok=_2hu2Qoo" width="580"></a></figure><p>Keep a budget so that you can identify what you spend most of your earnings on. Perhaps limiting dining at a restaurant or cafe to once a week, and instead, cook meals at home. Reducing your power usage, changing energy providers and upgrading your old appliances can be a great way to ensure your home is more energy-efficient, which will also result in lower power bills. Avoid purchasing low-quality items that are likely to need replacing. For more tips on how to save money, <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers"><u><strong>check our article</strong></u></a> about how you can save for a house deposit in a year. </p>

<h2><strong>20. Using gifted money towards your loan</strong></h2>

<p>If you receive any bonuses at work, cash gifts or inheritance and you’ve opted for a variable interest rate, then you could consider allocating a portion of the amount for your mortgage payments. </p>

<h2><strong>21. Rent out your home/spare rooms on Airbnb</strong></h2>

<p><a href="/guides/breezybnb-chooses-urban-s-5-best-brisbane-apartments-for-airbnb"><u><strong>Listing your home on Airbnb</strong></u></a> can be a great way to bring in some extra funds. Money earned from listing your home can also be put towards your loan repayment. Listing your home while you're away is also a great way to ensure your home is always occupied.</p>

<h2><strong>22. Use your tax refund</strong></h2>

<p>[smartcode_project:default project_id=22057]</p>

<p>Your tax refund can be a great way to make a bulk payment on your home loan. For those that choose to lease their home, the ongoing rental property cost <a href="/guides/18-ongoing-rental-property-costs-and-which-ones-are-tax-deductible"><u><strong>may be tax-deductible</strong></u></a>.</p>

<h2><strong>23. Seek additional work</strong></h2>

<p>Working a second job if possible, is a great way to save money quickly. Look for work with flexible hours, or casual opportunities that will fit around your schedule.</p>
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Olivia Round

How to secure a mortgage-free lifestyle sooner

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<p class="s6">Monark Property Partners, a financial consultancy based in Victoria, has launched its fourth debt investment fund of $50 million to meet the demand for private capital from developers in the middle property market.</p>
<p class="s6">This current additional capital raising will push Monark’s total funds under management to over $250 million.</p>
<p class="s6">“Our investors continue to invest in Monark as we are able to deploy capital in a responsible and diligent manner earning attractive returns relative to other fixed income investments such as bonds and term deposits. Our mortgage funds offer strong risk-adjusted returns with low volatility, and with risk mitigation being absolutely paramount."</p>
<p class="s6">Monark has built an impressive track record of delivering targeted returns to investors with no capital losses,” said CEO, Michael Kark (pictured above).</p>
<p class="s6">Melbourne is projected to require up to 48,000 new dwellings per annum to meet population forecasts. Given that the Victorian Government strategic plan is for 70% of new dwellings to be provided in established suburbs, this presents strong opportunity for further apartment development within the inner and middle ring suburbs.</p>
<p class="s6">The top 10 suburbs for current apartment projects in the inner and middle ring suburbs are:</p>
<p class="s6">1. Glen Iris, 13 projects</p>
<p class="s6">2. Footscray, 9 projects</p>
<p class="s6">3. St Kilda, 7 projects</p>
<p class="s6">4. Collingwood, 6 projects</p>
<p class="s6">5. Brunswick, 6 projects</p>
<p class="s6">6. Malvern East, 5 projects</p>
<p class="s6">7. Hawthorn, 5 projects</p>
<p class="s6">8. Fitzroy, 5 projects</p>
<p class="s6">9. Richmond, 4 projects</p>
<p class="s6">10. Prahran, 4 projects</p>
<p class="s6"> “The middle ring market continues to be highly desirable as people want to live in middle and inner ring suburbs close to jobs and lifestyle amenity. Residential and commercial boutique developments in these middle ring sectors will continue to grow in appeal for both owner occupiers and investors as there will always be appetite for quality product in these locations,” added Co-founder Adam Slade-Jacobson.</p>
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wdavis-8cCN98p7xp

Monark Property Partners' launch $50 million investment fund

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<p>Australian Finance Group Ltd will merge with the mortgage aggregation business Connective Group Pty Ltd, according to their official website.</p>
<p>The partnership will create a "momentous national mortgage distribution network", with more than 6,575 brokers and $76 billion in combined mortgage settlements this financial year.</p>
<p>Connective Group Pty Ltd will reportedly receive $60 million in cash, and 30,886,441 AFG shares, as part of the agreement, with AFG to fund the bulk of the cash component through a new corporate debt facility.</p>
<p>The merged business will have a significant national footprint in Australia’s $1.8 trillion home loan market.</p>
<p>"The expanded distribution channel and broader diversification of products the combined group can supply will provide greater choice for both brokers and consumers," according to AFG Chairman Tony Gill.</p>
<p>Connective CEO Glenn Lees said "the coming together of the Connective and AFG teams is a natural fit".</p>
<p>While bound by a binding conditional implementation deed entered into by both parties, the agreement remains conditional until a court validates the legality of the transaction.</p>
<p>Official approval from both company’s shareholders, and from the Australian Competition and Consumer Commission (ACCC), are also required before the merge can be executed.</p>
<p>AFG expects the merge to be completed in the second half of FY2020 (between June and September next year).</p>
<p>AFG has indicated their intent to "keep the market informed of progress of satisfaction of the conditions precedent to the transaction in accordance with its ASX continuous disclosure obligations".</p>
<p class="x_MsoNormal">Law firm Norton Rose Fulbright advised Connective Group on the deal valued at $120 million. </p>
<p class="x_MsoNormal">The team was led by corporate M&amp;A partner Jasmine Sprange, restructuring partner Alex Mufford and special counsel Bernie Walrut, and was supported by special counsel Sarah Chen, senior associate Oliver Kabongo and associates Michael Phillips and Liya Wu, with specialist support from partners including Belinda Harvey.</p>
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AFG to merge with mortgage aggregator Connective

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<p><span>EXPERT OBSERVER</span></p>
<p>The Australian Bureau of Statistics (ABS) released housing finance data for September 2018 earlier today and it showed a further weakening of demand for mortgages.</p>
<p>Over the month, the total value of housing finance commitments was recorded at $29.1 billion which was the lowest monthly value since August 2014.</p>
<p>While the decline in finance commitments over recent times has been primarily driven by investors, owner occupier demand is now also clearly easing.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/11/Cam1.jpg" target="_blank">to enlarge.</a></p>
<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/Cam1.jpg" alt=""></p>
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<p><span>Over the month, the $29.1 billion worth of housing finance commitments was split between $19.4 billion to owner occupiers and $9.8 billion to investors. </span></p>
<p><span>The $19.4 billion worth of commitments to owner occupiers was its lowest monthly value since July 2015 while the $9.8 billion to investors was its lowest monthly value since July 2013. </span></p>
<p><span>Lending to owner occupiers in September 2018 was -9.4% lower than its monthly peak in February 2018. Housing finance commitments to investors in September 2018 was -33.8% lower than its April 2015 monthly peak.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/11/Cam2.jpg" target="_blank">to enlarge.</a></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/Cam2.jpg" alt=""> </span></p>
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<p><span>In terms of the different types of owner occupier housing finance commitments, each of the four categories recorded a fall over the month while year-on-year, refinance was the only segment that was higher. </span></p>
<p><span>Importantly, the two largest components of lending to owner occupiers; refinance and purchase of established were -15.9% and -12.9% below their historic peaks in September 2018. </span></p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/11/cam3.jpg" target="_blank">to enlarge.</a></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/cam3.jpg" alt=""> </span></p>
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<p><span>It is a similar story for investors with demand falling across both new construction and established properties, both of which are lower over the month and year-on-year.</span></p>
<p><span> In fact the September 2018 value of lending to investors for new construction was -46.9% below its peak while lending for established properties was -35.6% lower.</span></p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/11/cam4.jpg" target="_blank">to enlarge.</a></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/cam4.jpg" alt=""></span></p>
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<p><span>As investor demand has faded from the housing market, demand from owner occupier first home buyers had been trending higher. </span></p>
<p><span>This lift was largely on the back of introductions of stamp duty free or stamp duty reduced purchases for first home buyers under certain price points in NSW and Vic which became available in July 2017. More recently the data is pointing to an easing of demand from first home buyers. </span></p>
<p><span>In September 2018 there were 8,693 owner occupier first home buyer commitments which was both lower than the previous year (9,618) and the previous month (9,534). In fact the 8,693 </span><span>commitments was the lowest monthly number since January 2017 (note the data isn’t seasonally adjusted so January is always much lower than other months) other than that you’d have to go back to </span><span>June 2017 to see commitments so low (the month prior to stamp duty concession going live in NSW and Vic). </span></p>
<p><span>Given the ongoing declines in dwelling values, particularly in Sydney and Melbourne, and the now apparent declines in owner occupier and investor housing finance commitments, it is hard to see a reversal in dwelling value declines or a lift in sales activity any time soon.</span></p>
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<p><span>As activity reduces, housing inventory is building up, providing more choice for buyers and little in the way of urgency to make a purchase decision.</span></p>
<p>The upcoming pause for Christmas and New Year may see some adjustment in the New Year but even that looks unlikely. For the coming months it is expected mortgage demand will continue to fall as will dwelling values.</p>
<p><em><span>CAMERON KUSHER</span> is a property research analyst for CoreLogic</em></p>
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ckusher-ujnxiKuFQs

The weakness in housing finance commitments now looks engrained: Cameron Kusher

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<p>The September ABS housing finance approvals data came in well below expectations with the number of approvals to owner occupiers falling 2.3% vs consensus forecast of a 2% gain.</p>
<p>According to the latest housing finance data from the Australian Bureau of Statistics, 55,812 home loans were approved throughout September – down from 57,137 the month prior. </p>
<p>The value of investor loan approvals also fell sharply, down 6.3%, Westpac noted.</p>
<p>In both cases, approvals were coming off surprisingly strong gains in August, owner occupier approvals up 1.5% and the value of investor loans up 4.8%, it added.</p>
<p>The ANZ noted h<span>ousing finance commitments in September recorded the largest decline in two years, and falling auction results suggest the market has further to cool through the remainder of 2017 and into 2018. </span></p>
<p><span>"We believe the regulator/RBA and state governments will be encouraged by the slowdown in investor borrowing and improved access to the housing market for first home buyers, respectively," the ANZ noted.</span></p>
<p>Matthew Hassan at Westpac noted more generally, both owner occupier and investor finance approvals have been holding up much better than wider market measures in 2017 – the slowdown in Australia’s housing market has been more muted in the finance data.</p>
<p>"This largely reflects the nature of the macro-prudential measures introduced in late March which had a heavier impact on investor segments and would have generated significant ‘switching’ between ‘interest only’ and ‘principal and interest loan products’.</p>
<p>"Investor loan figures include refinance and hence would have been boosted by existing borrowers switching between loans (although technically this should only cover those switching between lenders)."</p>
<p>The ABS detail showed a broad based pull back with weakness in construction related approvals as well.</p>
<p>By state, Victoria was the only major state to record a rise in owner occupier approvals.</p>
<p>First home buyer approvals also declined suggesting the boost from recent increases in state government assistance may already be waning.</p>
<p>"Overall, the update brings the finance approval data more into line with the clear slowing signal already evident from turnover, auction markets and prices," Hassan comented.</p>
<p>"The weakness in owner occupier loan approvals bears closer analysis.</p>
<p>"For investors, a further pull back is likely in the months ahead depending on the extent to which loan activity has been supported by refinancing."</p>
<p><span>The 2.3% drop in home loan demand "was largely expected,” Mortgage Choice chief executive officer John Flavell said. <br><br>“The fact is, interest rates have now been sitting at historically low levels for over 12 months. </span></p>
<p><span>"When interest rates first started to fall, we saw a spike in the number of borrowers looking to get into the market and take advantage of the low rate environment. <br><br>“But, given that rates have been so low for so long, it is only natural that we would eventually see a slight reduction in the level of home loan demand.<br><br>“That said, it is important to note that home loan demand is still high by </span><span>long term</span><span> standards. While we have seen some of the heat come out of the market, the market certainly hasn’t collapsed. <br><br>“Quite the opposite. Over the last three months, more than 55,000 home loans were approved on a monthly basis. The last time home loan demand was this strong for this long was over a year ago.”</span></p>
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Latest housing finance approvals at well below expectations

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<p>The Bank of China (Hong Kong), HSBC and ING recently closed one of the UK’s largest real estate financing deals by securing the finance for the acquisition of an iconic building in London, known as the ‘Cheesegrater’.</p>
<p>The 46-storey Leadenhall Building was bought earlier this year by Hong Kong-listed real estate company C C Land Holdings Limited for £1.15 billion.</p>
<p>The three leading banks acted as joint mandated lead arranger, joint bookrunner, joint coordinator and joint hedge coordinator by providing financing for the asset. </p>
<p>The deal marked the largest acquisition of a single building in the UK since December 2014, when the HSBC Tower in Canary Wharf was acquired for £1.174 billion, and underpins the strong global investor interest in London’s real estate market.</p>
<p>C C Land’s deputy chairman Dickie Wong said the company was confident about the long-term prospects of the London property market.</p>
<p>He said C C Land “will continue to look for potential investment opportunities in this city, especially on those trophy and iconic buildings similar to The Leadenhall Building”.</p>
<p>Mike Shields, head of Real Estate Finance UK, USA &amp; Asia, ING Bank, added that the  transaction shows “our expertise in financing landmark office properties and is a perfect mix of our leading UK real estate finance franchise and ING's extensive network in Asia”.</p>
<p>The transaction was one of the most significant real estate financing deals to be agreed in London in recent years, added Andy Armstrong, global co-head of Corporate Real Estate HSBC. </p>
<p>The Leadenhall Building is the tallest building in the City of London, and the acquisition was dubbed as China’s biggest investment in the UK property market, The Telegraph had reported. </p>
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jonathanchancellor-7SQnKwU6yx

ING, Bank of China and HSBC close financing deal for London's 'Cheesegrater' 

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<div><span>The latest regional quarterly figures from the Australian Financial Security Authority (ASFA) provided the most compelling evidence yet of rising financial stress levels. </span></div>
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<div><span>Although the number of Part IV and Part XI bankruptcies was higher in the March quarter than in the preceding three months to December, year on year there was a modest decline. </span></div>
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<div><span>Western Australia has seen a clear uptrend since the June quarter of 2014 as the resources downturn continues to bite.</span></div>
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<div><span>Looking at new personal insolvency activity, however, there was a clear rise in the number of debtors both on a quarterly and on an annual basis. </span></div>
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<span>Here too the figures for Western Australia reveal clear signs of financial stress, but in fact there was a strong increase in the number of debtors right across the board in the first quarter of the calendar year.</span><br><span><br></span><span>Below the figures for personal insolvencies are smoothed on a rolling annual basis to strip out seasonality. </span>
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<strong><span style="text-decoration: underline;"><span>Sydney stress emerges</span></span></strong><br><span><br></span><span>The number of debtors entering personal insolvency in Greater Sydney increased by a non-trivial 11 per cent in the March quarter.</span><br><span><br></span><span>Drilling into the statistical areas it is clear that many of Sydney's lower socio-demographic suburbs and LGAs are driving the increase, with elevated levels of activity in Penrith, Campbelltown, Bankstown, and Blacktown, and a secondary tier of stress emerging in Fairfield and Liverpool. </span>
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<span>There is also a growing heat spot of financial stress focused on the Central Coast, with rising debtor activity reported in Gosford and Wyong. </span><br><span><br>As explicitly predicted in our Long &amp; Short Reports, the <span>region with the highest proportion of new debtors in the adult population was St Marys, for the apparent reasons explained in the report. </span></span><br><div><span> </span></div>
<div><span>Across regional New South Wales, there was also a small flash of debtor activity in Newcastle during the March 2017 quarter, which will warrant careful monitoring. </span></div>
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<div><strong><span style="text-decoration: underline;"><span>Stress on the urban fringe</span></span></strong></div>
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<span>Similarly in Queensland the greatest contributor to the rising number of personal insolvencies was the outer urban region of Ipswich, including Springfield, while there was also a higher number of new debtors reported in the Logan region, where unemployment rates are elevated.</span><br><span><br></span><span>Scanning out across regional Queensland the regions with the highest number of new debtors in the March quarter included Townsville and Rockhampton. </span><br><span><br></span><span>Meanwhile in Greater Melbourne the greatest number of insolvencies was also seen in outer suburban hubs such as Wyndham, Whittlesea-Wallan, and Frankston. </span><br><span><br></span><span>With both full time employment growth and wages growth so weak, the rise in the number of insolvencies looks set to continue. </span>
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<div>For ongoing timely analysis of mortgage arrears and personal insolvency activity, please see our detailed monthly subscription reports. </div>
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<div><strong><span style="text-decoration: underline;"><span>Rising population</span></span></strong></div>
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<div><span>It should be noted that with Australia's population swelling by well over 1 million people every three years or so, it is more or less assured that the absolute number of personal insolvencies will rise over time. </span></div>
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<div><span>Adjusting the number of personal insolvencies for the size of the incumbent population and we can expect to see Queensland and Western Australia rising to the top of the pile, being the states most comprehensively impacted by the winding down of resources construction (and in Queensland's case, severe flooding). </span></div>
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<div>Note that there is a series break in activity in the Australian Capital Territory (ACT), since before 2005 personal insolvencies were reported by state of lodgement rather than state of residence. </div>
<p><strong><span style="text-decoration: underline;"><span>The wrap</span></span></strong></p>
<div><span>Overall, the ASFA figures provide compelling evidence of a rising trend in the number of people in financial difficulty. </span></div>
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<div><span>The regions showing the greatest levels of financial stress fit closely with what has been previously highlighted in our detailed market reports. </span></div>
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<div><span>In the absence of further monetary policy easing, a further rise in insolvencies appears inevitable. </span></div>
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<p><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Sydney property concerns emerge in rising financial stress: Pete Wargent

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<p class="caption">GUEST OBSERVER</p>
<p><span>Real-estate valuations in major cities are at historical peaks, banks are pulling back from commercial real estate lending and the tailwind from lower interest rates appears to be coming to an end. </span></p>
<p><span>Against this background,  assesses the outlook for real estate, and opportunities in traditional and alternative exposures, such as real estate debt. </span></p>
<p class="caption">Cap rates have come down; what’s next?</p>
<p><span>Qualitas is an investor that is agnostic to sector and which part of the capital structure we play in – ultimately what we are looking to do is find opportunities where there is the biggest mismatch between underlying real estate fundamentals and the capital markets pricing of parts of a capital stack for that sector.</span></p>
<p><span>The traditional commercial real estate sectors of office and retail have been a tough place for the past number of years in our view – underlying and fundamental tenant demand has been quite benign, outside of one off events such as the Sydney metro compulsory acquisitions, yet capital has been chasing those assets very hard right across the capital stack. Spreads and cap rates have come down a long way.</span></p>
<p><span>The easy money has been made in commercial assets by riding cap rates down: the Tailwinds are at an end. From this point, asset owners will need to deliver value through real asset management – focusing on your tenants and your physical product, because the easy wins are gone. That is often easier said than done and really requires focused on the ground management.</span></p>
<p><span>We anticipate there will be a period of further capital appreciation over the short term, this time driven by effective rental increases via some reduction in incentives, with cap rate compression petering away. The question for office owners will be how far incentives will fall and how sustainable is the increased effective rent in the face of the change in cap rate direction.</span></p>
<p class="caption"><strong>Residential will offer opportunities</strong></p>
<p><span>Residential is where we see the biggest dislocation, despite consistent market paranoia.</span></p>
<p><span>It’s true that certain precincts and product types having challenging supply issues, but there remains a fundamentally strong underlying demand for housing that gives us medium term confidence in the market. This is supported by a number of macro factors outlined below.</span></p>
<p class="caption"><strong>Demand</strong></p>
<p><span>There is unrelenting net migration, coupled with the strong political will in our major cities to increase housing density. There is also a massive change in tenure preference towards rental due to affordability and choice occurring in the market. </span></p>
<p><span>These are combining to provide a robust inherent demand. The fears about supply issues in the Melbourne and Brisbane CBD investor apartment market and some of the issues out in Western Sydney are well founded – however they make up a fraction of the overall housing story and outside of those hot spots demand is unrelenting. </span></p>
<p><span>The market is far from being in a structural surplus and if you measure supply by housing starts instead of planning approvals obtained, then this is particularly evident. Our research suggests that the reality is between Sydney and Melbourne we need circa 65,000 new dwellings per annum – that is around 180 dwellings each and every day and the market is nowhere near suppling that. </span></p>
<p><span>The market is learning rapidly about what is a “good” apartment dwelling and the days of poorly designed and built apartments being fired up at record pace are as good as finished. The occupier and buyer markets are too savvy now for that and developers are increasingly focused on the minutiae of design, which hasn’t always been the case.</span></p>
<p class="caption"><strong>Supply</strong></p>
<p><span>Our view is that these demand drivers are robust for the medium term but will be supported by the other side of the equation, being the supply situation – particularly the factors curtailing supply.</span></p>
<p><span>There is currently a severe shortage of debt capital for the development of residential – it is currently as bad as if not worse than the financial crisis. Notwithstanding media hype about “postcode blacklists”, the banking sector has taken a much more generic approach to development finance –the tap is very close to being off altogether.</span></p>
<p><span>Our commercial estate lending market is dominated by 4 major banks with around an 85% market share versus closer to 50% share in the US and Europe. Given the soft conditions in other sectors of the economy, the banks’ weighting to real estate is heavy and APRA has stepped up examination of commercial real estate books significantly. The property finance departments now have negative asset volume budgets and are actively seeking to shed developer clients. </span></p>
<p><span>This significant pullback in credit availability is being compounded by a confusing and difficult town planning environment in both Sydney and Melbourne.</span></p>
<p><span>Notwithstanding the desire from government to increase density around existing amenity, there is an ongoing battle against local councils and the electorates. It is having a direct impact on the ability for new supply to be injected in to the right areas of the market and is exacerbating shortages in the areas housing is required – again, the political environment resulting from “too many city shoebox apartments” has led to a broad-brush approach to reigning in density due to issues in one small segment of the market, much in the same way the banks have done.</span></p>
<p><span>This means is that the majority of the cranes that you see in the sky in our major cities are what we call 2014 and 2015 vintage cranes – there are significantly less 2016 project commencements and we anticipate 2017 and even 2018 will be similar – meanwhile, the underlying demand and net migration pushes against the supply shortage.</span></p>
<p class="caption"><strong>Where to Find Value?</strong></p>
<p><span>So if I turn to what Qualitas is looking for in the market currently, one thing we look at very closely is what we call the “Revenue &amp; Capital Curve”. This is a conceptual indicator for us about where we want to pivot our investing activity. As you will see there is a clear Equity Strike Zone and a clear Debt Strike Zone – we feel that we are currently clearly in the Debt Strike Zone.</span></p>
<p><span>On that basis, our thesis is to focus on playing the current position of the curve as well as laying the foundations for the next inflection point on the curve:</span></p>
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<li>Filling the capital gap on “shovel ready” projects – playing the current cycle position</li>
<li>Repurposing assets to focus on expected 2020 supply shortage – positioning for the next turn in the cycle.</li>
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<p><span>We are currently most focused on debt or debt-like instruments as the returns available at this point are equity like in our view. The debt pull back is leaving significant holes in capital structures and the returns on offer are strong on a risk adjusted basis and akin to equity, particularly given the late entry point of the debt.</span></p>
<p><span>This ability to deliver strong risk-adjusted returns to our investors is part of what’s driving Qualitas’ growth. Coupled with the addition of respected senior team members, we are confident this growth will continue, benefiting not just our investors, but the partners for whom we filling the lending gap. </span></p>
<p><em>Mark Fischer is managing director, Principal Investments at Qualitas and can be contacted <a href="https://www.qualitas.com.au" target="_blank">here</a>.</em></p>
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