Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

First Home Buyers

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Perth's burgeoning property market is continuing to provide new off-the-plan developments suitably priced for first home buyers. According to the Housing Industry Association's (HIA) <a href="https://hia.com.au/foundation/-/media/HIA-Website/Files/IndustryBusiness/Economic/publications/affordability-report-extract.ashx?la=en&amp;hash=1D18CF3A2F7B99C3DB6F7B24968D59C71AEF15FC">quarterly housing affordability report</a> released earlier this year, house prices in Perth are at their most affordable rate in over 20 years. Baring this sentiment in mind, we took a look at the Urban's project database to discover some of Western Australia's most affordable properties. 

Here are 5 Perth apartments priced from $262,500.

<h2>#1 RIVERENA </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/banner.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/banner.jpg?itok=JBmnXoY2" style="width: 580px; height: 301px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure><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/apartment-slide-3.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/apartment-slide-3.jpg?itok=jEQaE3Z-" style="width: 580px; height: 393px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure>Developers: Finbar

Location: 5 Rowe Ave, Rivervale WA

For $299,000 you can get a 1-bedroom Riverena apartment which boasts an impressive 8-star NatHERS energy efficiency rating, noise and thermal protective double glazing and solar heating. The open-plan design offers modern living with special features including stone benchtops, glass splashbacks, refuse chutes and the choice of three different interior colour schemes.

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<h2>#2 AFFINITY AT THE SPRINGS</h2>

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<figcaption>Credit: Hillam Architects</figcaption></figure><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/150623-affinity-living-to-city-light-upgrade-final-5000-cmyk.jpg" rel="gallery-all" title="Credit: Hillam Architects"><img alt="Credit: Hillam Architects" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/150623-affinity-living-to-city-light-upgrade-final-5000-cmyk.jpg?itok=39tD3j4i" style="width: 580px; height: 325px;" title="Credit: Hillam Architects"></a>

<figcaption>Credit: Hillam Architects</figcaption></figure>Architect: Hillam Architects

Developers: Dragon Century

Location: 3 Hawksburn Road, Rivervale

The Hillam Architects-designed Affitinty apartments provide the perfect resort-style living only 3km from Perth CBD. Complete with pool, spa, cabana, gym, bbq, yoga zone and bike parking, Affinity’s exceptional amenity offering is a rare find for such affordable apartments, priced from $279,000. The apartments are perfectly positioned along Swan River, with stunning views of the city and beyond.

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<h2>#3 VICINITY APARTMENTS</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/print_97_12_junction_blvd_cockburn_central_12.jpg" rel="gallery-all" title="Credit: Frasers Property"><img alt="Credit: Frasers Property" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/print_97_12_junction_blvd_cockburn_central_12.jpg?itok=G9XhZbxS" style="width: 580px; height: 387px;" title="Credit: Frasers Property"></a>

<figcaption>Credit: Frasers Property Australia</figcaption></figure><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/print_97_12_junction_blvd_cockburn_central_1.jpg" rel="gallery-all" title="Credit: Frasers Property"><img alt="Credit: Frasers Property" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/print_97_12_junction_blvd_cockburn_central_1.jpg?itok=HEsMpjGq" style="width: 580px; height: 387px;" title="Credit: Frasers Property"></a>

<figcaption>Credit: Frasers Property Australia</figcaption></figure>Developers: Frasers Property Australia

Location: 2 Signal Terrace, Cockburn Central WA

Located only 30 mins from central Perth and 20 mins from Freemantle, Vicinity apartments are located in the Cockburn Living complex and offer one-bedroom apartments from just $262,500.

The apartments, delivered by Frasers Property, have been designed with a sustainable focus, featuring light sensors; WELS rated fixtures and Waterwise native landscaping and gardens; solar panels and energy-efficient lighting. Vicinity apartments also feature Smeg appliances, stone kitchen benchtops and air-conditioning.

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<h2>#4 PALMYRA APARTMENT ESTATE</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/lawn-area-5k.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/lawn-area-5k.jpg?itok=xCqdJwzT" style="width: 580px; height: 326px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure><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/lifestyle-pool-render.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/lifestyle-pool-render.jpg?itok=aj2oclAF" style="width: 580px; height: 488px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure>Developers: Finbar

Location: 45 McGregor Road Palmyra

Palmyra Apartment Estate is a low-rise collection of 5 buildings surrounded by lush landscaped gardens and exceptional communal amenity. On offer to residents is a 25-metre lap pool, commercial-grade gym, spa, sauna, residents lounge and pool table. The residence is located just 10 minutes drive from the Garden City Shopping Centre. Enjoy affordable luxury just 6 mins from Freemantle and 24 mins from Perth CBD from just $300,000.

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<h2>#5 VANTAGE</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/141013-riverdale-v01-street-final-2000_1520x2000_acf_cropped_1520x2000_acf_cropped-950x0-c-default.jpg" rel="gallery-all" title="Credit: Hillam Architects"><img alt="Credit: Hillam Architects" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/141013-riverdale-v01-street-final-2000_1520x2000_acf_cropped_1520x2000_acf_cropped-950x0-c-default.jpg?itok=WceTj-34" style="width: 580px; height: 763px;" title="Credit: Hillam Architects"></a>

<figcaption>Credit: Hillam Architects</figcaption></figure><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/image_36.jpg" rel="gallery-all" title="Credit: Hillam Architects"><img alt="Credit: Hillam Architects" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/image_36.jpg?itok=STBxH3s-" style="width: 580px; height: 435px;" title="Credit: Hillam Architects"></a>

<figcaption>Credit: Hillam Architects</figcaption></figure>Architect: Hillam Architects

Developers: Edge Visionary Living

Location: 60 Riversdale Road, Rivervale

Vantage apartments are situated right on the riverfront and within walking distance to Perth Stadium and the CBD. Buyers are invited to choose from a selection of 3 luxury interior schemes. Each apartment features 2.7m ceiling heights, AEG appliances, reverse cycle ducted air conditioning and spectacular views from the city to the hills. Residents may book communal facilities such as the fully equipped theatre room for private events. One-bedroom apartments priced from $385,000.

 

Disclaimer: Prices are subject to availability and could change. <a href="/contact">Contact us</a> so we can put you in touch with the sales agent.
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Olivia Round

5 Perth apartments under $385k

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EXPERT OBSERVER
In the lead-up to the recent Federal election the Coalition announced the First Home Loan Deposit Scheme.
The scheme will provide up to 10,000 loans to first home buyers each year and will offer first home buyers better access to finance without having to save a 20% deposit.
Additional details about the plan include: The Scheme will be available to eligible first home buyers who have been able to save for a deposit of at least 5% up to 20%. This will mean that eligible first home owners will be able to purchase their own home years earlier than they would normally be able to do.
Also, they would not be required to purchase lenders mortgage insurance saving them approximately $10,000. The lender would still undertake the full normal credit check process on the borrower (meeting all their legal obligations) to ensure that the borrower is in a position to be able to afford the repayments.
If the borrower refinances or the loan comes to an end the Commonwealth support will terminate. The Scheme will support low and middle income earners across Australia. Support would only be available to first home buyers below a certain capped income level which is $125,000, or $200,000 combined income for a couple who are both first home buyers.
The income test would be based on the previous year’s taxable income to provide certainty. Support will also be targeted to entry properties, with a maximum loan size determined on a regional basis, reflecting the different property markets across Australia.
The first home buyer will be able to use the Scheme in conjunction with the First Home Buyer Super Savers Scheme (FHSSS) and State or Territory first home buyer grants and duty concessions. The Scheme will commence on 1 January 2020 and will be operated by National Housing Finance and Investment Corporation (NHFIC).
Support for borrowers could include guaranteeing approved applicants the additional loan amount taken out by the first home buyer to cover the difference between the amount of the first home buyer's deposit and 20 per cent of the value of the property. While there aren’t a whole lot of details about the plan there are some important things to consider with this plan.
1. Over the past 10 years there has been an average of 103,485 first home buyer finance commitments per annum. Given this, only around 10% of first home buyers will be able to access this scheme. 2. A 20% deposit is not actually required to take out a mortgage. Buyers can borrow with less than a 20% deposit. If they choose to do so, LMI is either an additional upfront cost or amortised into the mortgage amount. LMI is not transferable so if you choose to refinance or sell and purchase but still have less than 20% equity, LMI will be payable again. 3. The borrower will still need to pass normal credit checks. Over the past four years or so it has become increasingly more difficult to access a mortgage and borrowers participating in this scheme will still need to pass the normal credit checks. Given this, the scheme, as proposed, is not going to result in anyone that currently can’t access a mortgage to take out a mortgage. What it will mean is that people that already qualify for a mortgage can potentially avoid LMI and they can also purchase with a smaller deposit.
The scheme is positive in that it allows first home buyers to borrow with a smaller deposit and without LMI. The benefit of this is they can potentially own a home earlier. From a housing affordability perspective it is difficult to see how this policy actually helps.
Given that borrowers still need to pass usual credit checks, the only people that will have access to the scheme are those that could already purchase any way. While the scheme will help borrowers enter the market earlier, it seems unlikely that it will do anything to improve housing affordability.
If anything, it might increase demand from first home buyers and lead to higher prices within the price points that fit with maximum loan sizes which have not yet been determined.
Some more strategic alternatives to improve housing affordability can be found on the supply side via town planning reforms to allow for higher densities in high demand areas, improving accessibility to affordable housing markets via infrastructure upgrades and re-thinking inefficient taxation transactional taxes such as stamp duty.
CAMERON KUSHER  is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
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ckusher-ujnxiKuFQs

Will the government’s first home loan deposit scheme really help FHB's? Cameron Kusher

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The good news for homeowners and investors has continued with the Reserve Bank cutting the official cash rate by 25 basis points to a historic low of 1.25%.
This decision follows hot on the heels of APRA calling on lenders to scrap the 7% mortgage interest rate test and the Federal Election result that has ensured that property tax benefits such as negative gearing and the 50% capital gains tax discount are maintained. 
Many of the offices I have spoken to or visited over the last two weeks are reporting their phones started ringing again on the Monday morning after the election.
This result underlines once again that consumers don’t like uncertainty.
The decision by the central bank today will have a similar result on buyer confidence and throw in the Federal Government’s new First Home Loan Deposit Scheme announced during the Federal Election campaign, and the short to medium term outlook for Australian property markets is much stronger than even a month ago.  
However, to achieve the intended impact of the easing, it’s imperative every lender passes the 25-basis point cut on to borrowers in full.
The RBA’s move will help affordability for first home buyers.
The caveat is that the banks must come to the party and pass this rate cut on in full.
First home buyers have all the power in the market right now. They have all the support from the government, the central bank, the lenders, and there are plenty of incentives aimed at first timers seeking to buy off the plan property.
However, the trouble is empty nesters don’t have the incentives to move, which is hindering the housing plans of upgraders and first-time buyers. 
We need governments to look at ways to provide last-time buyer incentives to help encourage the empty nesters to downsize. 
Tax incentives have been proven to work for first-time buyers. Now is the time to try to encourage empty nesters to move through tax incentives.
ANGUS RAINE is the Executive Chairman of Raine &amp; Horne
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j.ballantyne1990-6AQqhLzZaK

Rate cuts help affordability, but governments need to consider last-home buyer incentives: Angus Raine

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Next Tuesday the Reserve Bank of Australia are expected to cut the official cash rate for the first time since mid 2016.
Finder, Australia's most visited comparison website, has seen a huge uptick in first home buyers visiting their site as a result of the expected cut which would see the cash rate drop to 1.25%.
It has sat at 1.5%, a historic low, since August 2016, the last time the rate moved. 
Finder has seen a 55% rise in visitors to first home buyer guides so far this month compared to May 2018.
It’s the biggest spike in visitors to those pages in 12 months, according to Finder. Graham Cooke, insights manager at Finder, says first home buyers may finally get their opportunity to break into the market. 
“There’s a perfect storm brewing for first home buyers. Property prices are dipping, lenders are dropping their rates and a first home buyer’s scheme is on the cards. “After 31 months of no change, all signs are pointing to a cash rate cut next Tuesday. The expected move is causing a flurry of rate drops among lenders, especially on the fixed home loan front.”
Lenders are already lowering their rates, with 40 lenders dropping rates across 333 products in May.
BankWest, UBank, CUA, Greater Bank and ME Bank are among those that have cut rates.
The lowest variable rate on the market comes from Mortgage House's Home Loan Prime - Early Bird Rate Cut Special which is just 3.29%.
TicToc has the lowest fixed rate, offering 3.39% for one year.
Cooke urges property hunters to make sure they consider possible rate hikes down the track.   “While we’re on the verge of a new historically low cash rate, what all borrowers need to consider is that rates will – eventually – go up. With that in mind, you should always factor in a 2-3% buffer on top of your current home loan interest rate to accomodate for future rate hikes if and when they do happen."
 
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jrobinson-rf4aSBido9

First home buyers set to pounce as rate cut looms: Finder

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GUEST OBSERVATION
It won’t help enough, but it will get some people their keys. 
The new <a href="https://www.liberal.org.au/latest-news/2019/05/12/helping-australians-buy-their-first-home" target="_blank">First Home Loan Deposit Scheme</a> announced the Coalition, and <a href="https://theconversation.com/view-from-the-hill-quick-on-the-draw-labor-matches-morrisons-first-home-owners-scheme-116969" target="_blank">instantly backed by Labor</a>, is likely to be popular among those on the cusp of buying their first home.
It’ll be open to singles earning up to A$125,000 and couples earning up to A$200,000 who have saved at least 5% of the value of the home. The government-owned National Housing Finance and Investment Corporation will partner with private lenders to put up as much as another 15% of the value of the home to take the deposit to 20%.
However, the scheme is capped at <a href="https://www.smh.com.au/federal-election-2019/no-free-money-morrison-dismisses-concerns-over-first-home-buyer-scheme-20190513-p51moj" target="_blank">10,000 home buyers per year</a>, roughly one tenth of the number of Australians who bought first homes in 2018.
It’ll help them - the latest survey shows that <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6553.0" target="_blank">more than half of first homebuyers</a> needed financial assistance outside of their own savings to get their deposit. The <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/14036090120617" target="_blank">benefits of home ownership</a> have been widely documented. But will it do enough?
Source of deposits
<img src="https://images.theconversation.com/files/274299/original/file-20190514-60557-572nt0.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
<a class="source" href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6553.0" target="_blank">Authors' own calculations from ABS Survey of Income and Housing 2013-14</a>
An often-expressed concern is that such a scheme will <a href="https://www.theguardian.com/australia-news/2019/may/13/first-homebuyers-scheme-who-gets-it-and-will-it-work-explainer" target="_blank">bid up house prices</a>. However, it is means-tested, making it much less vunerable to this criticism than the non-means-tested <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Former_Committees/hsaf/report/c09" target="_blank">First Home Owners’ Grant</a>.
And is also capped at 10,000 loans per year, giving it little scope to price pressure.
However, it may not be means-tested enough.
Consider the population subgroup that broadly comprises aspiring homebuyers who qualify for the scheme: renters aged 25-34 years who meet the scheme’s income criteria and whose financial wealth is between 5% and 20% of the lowest-priced quarter of houses for sale in the borad area in which they live.
In the most-recent <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6503.0" target="_blank">2015 ABS Survey of Income and Housing</a> there were 127,000 such potential eligible first home buyers, more than 12 times the 10,000 cap.
The cap is a practical necessity of course, needed to limit impacts on prices and prevent a cost blowout. But the weakness of the scheme is that the cap will be filled on a “<a href="https://www.smh.com.au/federal-election-2019/no-free-money-morrison-dismisses-concerns-over-first-home-buyer-scheme-20190513-p51moj" target="_blank">first come, first serve</a>” basis, without distinguishing between those who actually need help and those who are likely to meet the deposit requirement anyway.
The graph shows that some 40% of potential first home buyers have managed to save a deposit amounting to not much more than 5% of the home value. Only 7% have a 20% deposit or something near it.
Potential users of the scheme, by amount of deposit saved
<img src="https://images.theconversation.com/files/274312/original/file-20190514-60567-1rjotju.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Deposit saved by renters aged 25-34 who meet the scheme’s eligibility criteria, per cent of lower quartile property prices in area of residence, 2015-16. <a class="source" href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6503.0" target="_blank">Authors' own calculations from the ABS Survey of Income and Housing 2015-16</a>
The Coalition could get more bang for its buck within the cap by targeting those in greater need of assistance; for example by prioritising those who cannot access the so-called <a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842" target="_blank">Bank of Mum and Dad</a>. Not everyone has access to wealthy parents.
The Great Australian Dream of owning a home has been fading fast, and not just for young people. Naturally, the scheme’s details of the scheme require scrutiny. But overall, it provides a welcome acknowledgement (by both major parties) that the affordability crisis facing young people has not waned despite recent house price declines.
The scheme will restore the opportunity – at least to some – to accumulate wealth in property and enjoy the <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/14036090120617">security and other benefits</a> that home ownership brings.
But seriously addressing housing affordability will ultimately require a bigger intervention.<img src="https://counter.theconversation.com/content/117073/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/rachel-ong-viforj-113482" target="_blank">Rachel Ong ViforJ</a>, Professor of Economics, School of Economics, Finance and Property, <a href="http://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/small-but-well-formed-the-new-home-deposit-scheme-will-help-and-its-unlikely-to-push-up-prices-117073" target="_blank">original article</a>.
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The new home deposit scheme will help, and it’s unlikely to push up prices

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GUEST OBSERVATION
On housing, the contrast between the two major parties couldn’t be clearer.
The Coalition is still pretending that you can help first homebuyers without hurting anyone. Labor isn’t.
This matters, because Australian governments have been <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">pretending</a> for decades that there are easy and costless ways to make housing more affordable. And over that time the problems have become worse.
The Coalition’s First Home Loan Deposit Scheme is the <a href="https://www.liberal.org.au/latest-news/2019/05/12/helping-australians-buy-their-first-home" target="_blank">latest plan</a> that is supposed to arrest the decline in home ownership among younger Australians.
The Coalition’s First Home Deposit Scheme
Housing costs are a big problem for young people. Home ownership is <a href="https://theconversation.com/three-charts-on-poorer-australians-bearing-the-brunt-of-rising-housing-costs-87003" target="_blank">falling fast</a> in Australia, especially among the young and poor. Fewer than half of 25-34 year olds own their home today. Home ownership among the poorest 20% of that age group has fallen from 63% in 1981 to 23% today. At this rate <a href="https://theconversation.com/retiree-home-ownership-is-about-to-plummet-soon-little-more-than-half-will-own-where-they-live-115255" target="_blank">almost half of retirees</a> will be renters in 40 years time.
Saving a deposit is the <a href="https://insidestory.org.au/why-should-we-care-about-housing-affordability/" target="_blank">biggest hurdle</a>. In the early 1990s it took six years to save a 20% deposit on the average home. Today it takes 10 years. That’s bad news for younger Australians without access to the “<a href="https://www.smh.com.au/politics/federal/house-prices-even-the-head-of-the-treasury-is-becoming-a-mum-and-dad-bank-20161019-gs5ii5" target="_blank">Bank of Mum and Dad</a>”.
The Coalition’s new plan seeks to arrest the decline by lending would-be buyers up to 15% of the purchase price, provided they’ve saved at least 5% for themselves.
It would also mean that single first home buyers on less than $125,000 a year, or couples earning less than $200,000, could <a href="https://www.yourmortgage.com.au/calculators/mortgage_insurance/" target="_blank">save</a> $10,000 or more by not having to pay the <a href="https://www.anz.com.au/personal/home-loans/first-home-buyer/guide/key-things-you-need-to-know-about-lenders-mortgage-insurance/"></a><a href="https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/fees" target="_blank">lenders mortgage insurance</a> that is normally required when a purchaser has a deposit of less than 20%. There would be a cap on the value of homes purchased through the scheme, still unannounced, which would vary by region.
The Coalition is budgeting just $500 million for the guarantees. Labor was quick to <a href="https://theconversation.com/view-from-the-hill-quick-on-the-draw-labor-matches-morrisons-first-home-owners-scheme-116969" target="_blank">match</a> the scheme, partly because it doesn’t cost very much (unless there are unexpected losses).
Most likely, the scheme won’t have much impact.
It would increase home ownership, but only a little. It might also push up prices – but by even less. Some people saving for their first home might buy earlier. Others just priced out of the market at the moment could afford to pay a little more for a house given that they would not have to pay lenders mortgage insurance.
Most of those taking up the scheme would probably have bought anyway. Those with access to the Bank of Mum and Dad already have already been able to use such a scheme. And the income thresholds are set too high, cutting off only the top 10-15% of income earners. The New Zealand <a href="https://www.govt.nz/browse/housing-and-property/buying-or-selling-a-home/buying-your-first-home/" target="_blank">scheme</a>, upon which the Coalition’s plan is based, cuts out at incomes of only $85,000 for singles or $130,000 for couples.
The biggest barrier for many first home owners isn’t the deposit. Their problem is <a href="https://www.afr.com/opinion/when-responsible-lending-becomes-a-credit-slowdown-20190130-h1ant1" target="_blank">qualifying</a> for a mortgage when banks assess their ability to repay the loan assuming an interest rate of 7%, much higher than the typical 4%.
The Coalition has capped uptake at 10,000 loans every year, or about one in every ten loans (based on loans last year to first homebuyers). Even if none of them would have bought a home without the scheme (most unlikely), home ownership would be only 1% higher in a decade’s time.
But a bigger scheme might well be worse. If it “succeeded” in rapidly expanding demand from first home buyers, it would push up prices for everyone, not least all the other first home buyers trying to get into the market. Instead of being ineffective, it’d become counterproductive.
And the bigger the scheme, the greater the risks of <a href="https://www.theage.com.au/business/banking-and-finance/home-loan-scheme-could-increase-negative-equity-risk-economists-say-20190512-p51mke" target="_blank">dodgy lending</a>, which could leave the government on the hook if buyers default.
The underlying problem with the Coalition’s latest plan – like the First Home Super Saver Scheme it introduced in 2017, or the Howard and Rudd Government’s first homeowners grants – is that it tries to fix the housing affordability problem by adding to demand for housing.
Because it costs the budget less, the new scheme is less bad than its predecessors. But it shares their critical flaw: it pretends we can make housing more affordable without hurting anyone.
Its political virtue might be that it sends a signal to first home buyers that government is on their side.
Yet the Coalition <a href="https://www.news.com.au/finance/economy/australian-economy/experts-warn-of-glaring-issues-with-new-first-home-buyers-scheme/news-story/79b2fb2992b074104a6defc43730659a" target="_blank">won’t pursue</a> the one thing happen that would actually help home buyers the most: letting housing prices fall.
Labor’s negative gearing plan
Labor’s plan to abolish negative gearing on existing homes and halve the capital gains tax discount creates losers.
Labor would prevent new investors in existing homes from writing off the losses from their property investments <a href="https://alp.org.au/policies/reforming-negative-gearing-and-capital-gains-tax-arrangements/" target="_blank">against the tax they pay on their wages</a>. And investors would pay tax on 75% of their gains, up from 50% now.
Its plan takes away tax breaks worth $1 billion to $2 billion a year in the short term, and <a href="https://www.alp.org.au/media/1878/2019_labor_fiscal_plan.pdf" target="_blank">more</a> in the long term.
Existing homeowners would lose a little: The Grattan Institute <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">estimates</a> that house prices would be 1% to 2% lower under the Labor plan. The <a href="https://www.propertyobserver.com.au/http://www.abc.net.au/news/2018-01-08/govt-negative-gearing-claims-contradicted-by-official-advice-foi/9309736" target="_blank">Commonwealth treasury</a> and <a href="https://theconversation.com/confirmation-from-nsw-treasury-labors-negative-gearing-policy-would-barely-move-house-prices-116736" target="_blank">NSW treasury</a> have reached similar conclusions.
Prospective investors who had planned to buy and negatively gear an existing house would miss out on a lot. Some might buy anyway, others wouldn’t. Despite the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2018-11-16/fact-check-negative-gearing-under-80000/10387552" target="_blank">noise</a>, the bulk of these people would be among the <a href="https://www.smh.com.au/politics/federal/negative-gearing-changes-will-affect-us-all-mostly-for-the-better-20190208-p50wjn" target="_blank">top 10%</a> of income earners.
By reducing investor demand for existing houses, Labor’s policy could provide a genuine boost to “genuine” home ownership, by owner occupiers. Fewer investors would mean more first home buyers winning at auctions.
Recent <a href="https://insidestory.org.au/what-comes-after-the-housing-boom/">restrictions</a> on lending to investors imposed by the Australian Prudential Regulation Authority have already resulted in an <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5601.0Feb%202019?OpenDocument" target="_blank">increase</a> in the share of lending to first homebuyers. Labor’s policies would accelerate it.
The bottom line on housing? Changing rules on negative gearing and capital gains tax is more likely to increase home ownership than guaranteeing part of the deposit.
But no policy proposed in this Commonwealth election affects the really big lever for home ownership: <a href="https://theconversation.com/to-make-housing-more-affordable-this-is-what-state-governments-need-to-do-105050" target="_blank">increasing housing supply</a>.
Brendan Coates, Fellow, Grattan Institute
John Daley, Chief Executive Officer, Grattan Institute
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-brutal-truth-on-housing-someone-has-to-lose-in-order-for-first-homebuyers-to-win-117010" target="_blank">original article</a>.
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The brutal truth on housing: Someone has to lose in order for first home buyers to win

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GUEST OBSERVATION
The Coalition has put forward a scheme to help first home buyers get into homes, under which the government will <a href="https://www.liberal.org.au/our-plan-support-first-home-buyers" target="_blank">underwrite a loan of 15% of the value of the home</a>, to be treated as part of their deposit, taking a deposit of 5% up to 20%. Labor adopted it within hours of the announcement on Sunday, meaning that in one form or another it seems likely to become part of housing policy.
Home ownership benefits from significant tax advantages, which are at their strongest when owners have built up their equity. Partly for that reason, it has always been a major pillar of savings for Australians. But the benefits tend to be priced into the cost of housing, which helps explain why it is so expensive. Yes, it is not only those pesky investors.
Home prices are high because of tax breaks…
Blaming investors for this situation can be politically acceptable, but blaming homeowners more broadly or even hinting that tax advantages are to blame is political poison.
Blaming an insufficient supply of new houses is also unacceptable as it can be portrayed as a cop out, even though it is probably the biggest factor explaining the high cost of housing in Australian cities and cities in other countries and states such as Canada and California. In any event it is seen as a “states issue”.
This means the first point to make is that efforts to assist first home buyers are second-best options. Given that we are not tackling the problems we’ve got, whatever things we do do won’t be perfect.
…and an insufficient supply of homes
The latest proposal isn’t the first or only measure directed at first home buyers. The first home buyers grant introduced in 2000 as part of the goods and services tax package was similar but, at <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview200910/Housing" target="_blank">A$7,000</a>, on a smaller scale. State government concessions on conveyancing tax have also helped.
These measures have been criticised as simply putting upward pressure on prices, and as a result not benefitting first home buyers. This criticism is not correct. They benefit first home buyers by much more than they push up prices. They would only harm first home buyers if all buyers got the concession and it didn’t result in extra houses being built.
Neither is the case.
It is possible to help first home buyers…
In recent years we have seen a substantial supply response which should have put to rest notions that the market does not respond to shifts in demand. And first homes don’t make up that much of the market; <a href="https://to.ly/1yXXK" target="_blank">less than 20% of buyers overall</a>, although more in some sectors.
Measures to help first home buyers do have an upward impact on prices, but nothing like to the extent that they help first home buyers.
They hurt people swapping homes. They have to pay marginally more, as do investors, meaning renters have to pay more.
The major concern with the proposal is the risk that buyers might enter the market and then get into trouble.
…but they’ll need to be careful
One of the big problems in the US in the lead-up to the global financial crisis (GFC) were policies designed to get low-income households into the market.
When the GFC hit, they were the biggest losers. So policymakers will need to be very wary in designing the policy.
First home buyers will win, but they will need to be cautious.
Housing is not risk free. House prices can fall as well as rise, as recent history has confirmed only too well.
Nigel Stapledon, Research Fellow in Real Estate, Centre for Applied Economic Research, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/that-election-promise-it-will-help-first-home-buyers-but-they-better-be-cautious-116993" target="_blank">original article</a>.
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The Coalition's election promise will help first home buyers, but they better be cautious

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The Prime Minister’s plan to help first-home buyers purchase with only a 5% deposit could have a major impact on the broader economy, says one property group. 
The First Home Loan Deposit Scheme, adopted from New Zealand’s Welcome Home Loan program and announced by the Prime Minister Scott Morrison at the Liberals’ formal campaign launch in Melbourne last week, will mean first-home buyers, who have been able to save a deposit of at least 5%, will be able to access a government guarantee for the remainder of up to 20% of a property’s value.
It will also remove the costs of paying lenders’ mortgage insurance.
The scheme will offer up to $500 million in equity through the National Housing Finance and Investment Corporation, would start on January 1, 2020, and be capped for individuals earning $125,000 and couples earning $200,000.
Labor has said it will match the Coalition plan, stating it could afford to do so as it was “closing loopholes” for the wealthy.
RiskWise Property Research CEO Doron Peleg said the Coalition’s First Home Loan Deposit Scheme would support the market instead of further weakening it.
“Although the number of loans is expected to amount to around 10,000, when you take this amount and add in the saving of the LMI, potential interest rate cuts and the flow-on effect on upgraders, this could support particularly affordable markets that are more appealing to first home buyers,” he said.
“Also, the Prime Minister has said he would like to run the scheme through second tier lenders and this will further improve the position of non-bank lenders in the market.”
Peleg said Labor’s proposed taxation changes, to limit negative gearing to new homes only and cut capital gains tax from 50 to 25%, would have “unintended consequences” and further impact an already weak housing market.
“The property market has been experiencing ongoing weakness,” he said.
“Tighter lending standards, the findings of the Banking Royal Commission, political uncertainty, fears of the potential changes to negative gearing and capital gains tax, restrictions on foreign investors, unit oversupply and large falls in dwelling commencements have all had a material impact."
 
 
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Coalition’s First Home Loan Deposit Scheme would support the market: RiskWise

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There were 2300 first home buyers (FHBs) in March across NSW.
The average NSW FHB spends about $465,000 on their purchase, based on the commonly expected 20% deposit and ABS data showing a typical $387,000 NSW mortgage.
There is a lower $359,000 average mortgage in Victoria and $300,000 in Queensland.
The typical Australian first home buyer $342,000 mortgage is around 25% lower than the $462,000 non-first time owner occupier buyer's mortgage.
The ABS data also highlights the price gap between capital cities and the regions.
Sydney established detached house prices sit at around a $900,000 median, with houses in the rest of the state coming in at $466,000.
It is $700,000 for Sydney attached dwellings (terraces, semi and units) with the rest of NSW having a $405,000 median attached dwelling purchase price.
The gap is narrow in Queensland with established detached houses costing $530,000 in Brisbane against $430,000 in the rest of Queensland.
In Victoria, established Melbourne homes cost $705,000 slightly more than double the $350,000 in the rest of the state.
Prime Minister Scott Morrison's proposed deposit guarantee scheme will seek to pioneer a differential recognition of prices across the nation in deciding what priced homes will qualify.
It will have an as yet to be determined different cap on home purchases eligible for the scheme which will underwrite the topping up of buyers with just a 5% deposit who find lenders prepared to lend to them.
The current grants fully fund purchases up to $650,000, petering out on an $800,000 purchase.
The new scheme is likely to attract buyers to think about hiding to the regions and also into apartments in the city.
Urban Taskforce CEO Chris Johnson noted the average apartment in Sydney is likely going to be $400,000 cheaper than the average house.
"So many younger people, including families will see the benefits of a new type of living where they share large gardens, share swimming pools that they don’t have to maintain and often have child care centres next door.”
During March, first home buyers enjoyed the largest share in the Northern Territory, with 42% of owner occupier housing loans.
This was followed by Western Australia (36%), Victoria (30%) and Queensland (27%). 
FHB participation was lowest in Tasmania (20%), followed by South Australia (21%), the ACT (22%) and New South Wales (24%).
With more than 500 first home buyers over the past year, the 2170 Liverpool postcode retains its status as NSW's biggest beneficiary of government grants.
Over 11,000 Liverpool buyers have secured grants to get themselves onto the property ladder since the FHOG's commencement in 2000, introduced in the wake of the goods and services tax.
The outer ring south western buyers have secured $11.7 million in grants and concessions over the past year, and $213 million in the past 19 years.
The median Liverpool house price currently sits at $740,000, with its median unit price $440,000.
Westmead and Campbelltown follow as next busiest FHB hotspots.
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How will the price difference between capital cities and regions impact the new FHB policy?

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The first home buyers' deposit guarantee innovation, unveiled by Prime Minister Scott Morrison, is perfectly pitched at the impatient first home buyer generation.
It will turbo-charge their entry into the property market with a government scheme partnering with private lenders offering finance for approved buyers.
The First Home Loan Deposit Scheme will be available, from next January if either the Coalition or Labor wins the federal election, for new home buyers who have got a 5% deposit, which is the easy bit.
They will get government backing to make up the 20% house deposit typically required by lenders.
The scheme is based on the valid belief it is the deposit gap rather than the size of mortgage payments that is the real barrier to home ownership.
The government backed National Housing Finance and Investment Corporation will guarantee the difference between the lower deposit and the 20%.
The scheme will also help first home buyers save around $10,000 by not having to pay lenders mortgage insurance.
The scheme, adopted from a 2015 New Zealand scheme, would allow singles earning less than $125,000 a year and couples earning less than $200,000 a year to get into the housing market in quick time.
Past schemes, including the first home super saver (FHSS) scheme, have simply been too slow in achieving outcomes. 
The $500 million scheme is set to be initially capped at 10,000 loans annually, about one tenth of the market. 
Some 110,000 bought their first home in 2018, which was the highest level in nine years.
But the latest NSW figures for March show the lowest number in two years.
The value of homes that can be purchased under the scheme will be capped on a regional basis, reflecting different markets across Australia.
Although it has fallen in recent months, an entry-level Sydney apartment costing $560,000 takes around five years and four months savings for a 20% deposit, some 16 months longer than in Melbourne and two years longer than the equivalent in Brisbane.
"With the banks pulling back and larger deposits of 20% now being standard, it is not getting easier," Morrison said.
"The lenders would still be the ones lending the money. They would still do all the normal checks on the borrowers to make sure that they can meet their repayments – this isn’t free money."
There will be a small risk for the government having first time borrowers with higher indebtedness especially if the market continues to fall.
No official figures are kept on first home buyer arrears or distressed sales, but the even more cautious big four banks maintain overall arrears levels across NSW remain very low given the low interest rate landscape.
The government support would stay in place for the life of the loan, until its sale or until the value of the property rises to a point where they choose to refinance.
The First Home Loan Deposit Scheme will start on 1 January next year, the same date that Labor has said it would start its grandfathered negative gearing scheme to assist affordability.
The proposed Coalition policy won't impress those who don't support market intervention by government, but there has been some $10.3 billion in benefits since 2000 when the First Home Owners Grant scheme was introduced to help first-home owners to offset the effect of Goods and Services Tax.
This article first appeared in The Daily Telegraph. 
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