<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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.

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

First Home Buyers

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Is there such thing as a first home buyer hotspot?
If so, these 10 Victorian postcodes just might make the list. According to the State Revenue Office of Victoria, these areas had the most first home owner grant applications of any postcodes in Victoria for the quarter to June 2014.
<ol>
<li>Postcode: 3977 Suburbs: <a href="/news">Cranbourne</a>,<a href="/news"> Devon Meadows</a>, <a href="/news">Skye</a> Number of applications in June quarter: 200 
</li>
<li>Postcode: 3029 Suburbs: <a href="/news">Hoppers Crossing</a>, <a href="/news">Tarneit</a> Number of applications in June quarter: 177 
</li>
<li>Postcode: 3030 Suburbs: <a href="/news">Point Cook</a>, <a href="/news">Werribee</a>, <a href="/news">Derrimut</a> Number of applications in June quarter: 110 
</li>
<li>Postcode: 3064 Suburbs: <a href="/news">Craigieburn</a>, <a href="/news">Donnybrook</a>, <a href="/news">Roxburgh Park</a>, <a href="/news">Mickleham</a> Number of applications in June quarter: 110 
</li>
<li>Postcode: 3754 Suburbs: <a href="/news">Doreen</a>, <a href="/news">Mernda</a> Number of applications in June quarter: 84 
</li>
<li>Postcode: 3750 Suburbs: <a href="/news">Wollert</a> Number of applications in June quarter: 59 
</li>
<li>Postcode: 3810 Suburbs: <a href="/news">Pakenham</a>, <a href="/news">Rythdale</a> Number of applications in June quarter: 58 
</li>
<li>Postcode: 3978 Suburbs: <a href="/news">Cardinia</a>, <a href="/news">Clyde</a>, <a href="/news">Clyde North</a> Number of applications in June quarter: 58 
</li>
<li>Postcode: 3338 Suburbs: <a href="/news">Melton South</a>, <a href="/news">Brookfield</a>, <a href="/news">Eynesbury</a>, <a href="/news">Exford</a> Number of applications in June quarter: 51 
</li>
<li>Postcode: 3000 Suburbs: <a href="/news">Melbourne</a> Number of applications in June quarter: 50</li>
</ol>
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jrichardson-uRX5hFdKfN

Where are Victorian first home owners applying for grants?

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When it comes to purchasing a home, everybody wants a bargain - especially first home buyers.
If your "dream suburb" is now a dot on the horizon and you can't tighten your belt any further, it might be time to get creative.
The term "below market value" has a pretty stretchy definition and depends entirely on what people think a property should be worth - whether that person is a valuer, a lender, the vendor, or you. If you're hoping to buy a property "below market value", you're probably actually just after a home than what's expected for a property of that quality in that area, or for a lower price than you might have gotten it earlier. 
Under certain circumstances neither of those situations is desirable. If you're getting a property cheaper than any other on the street because it's falling apart, or because a new set of apartments is about to go up next door, you might be in for a dud. Similarly, if prices have fallen in a suburb over the past year, it might be because demand is falling away and unlikely to recover in the future.
Investors, owner occupiers and buyer's agents all have their own tricks for buying a property below what you would expect. They might keep an eye out for discounted homes, mortgagee sales, or off-market opportunities.  But before you snap up the next house in receivership you see online, or convince yourself that the dilapidated shack for sale is a below market value bargain, beware: sometimes it can be hard <a href="/expert-insights/investing/how-to-find-property-bargains-and-not-lemons-in-the-current-market">telling a bargain from a lemon</a>. 
If you want to buy a property "below market value", make sure it's still good value. Here are some strategies used to get a home for less than you'd expect.
<ol>
<li>
Mortgagee sales A mortgagee sale occurs when a property is possessed by a lender after the borrower can't repay their debts. If you head to a mortgagee auction, chances are you're buying a property that the bank wants off it's hands. However, that's no guarantee that you'll get a bargain basement price for the property. While the lender would probably prefer not to hold the property, they're also attempting to recover the money owned to them during the sale, and have an obligation to the defaulting borrower to sell their property at a fair value. However, a mortgagee sale can still sometimes provide good opportunity for bargain hunters. As Brad Caldwell-Eyles writes, most mortgagees will steer clear of fancy marketing strategies when selling a property, opting instead for straight shooting listing information - which might just mean it gets passed over by your competitors. 
</li>
<li>
Distressed sellers and deceased estates A "distressed seller" is exactly what it sounds like - a seller that has some sort of extra motivation to sell due to life circumstances. They could be ill, in financial trouble or leaving the country, and willing to sell their property at a loss, which is good news for you. For distressed sellers, time usually has a high dollar value, which you can use to your advantage. Sellers are under no obligation to advertised that they are "distressed", so if they are, it may mean they are particularly desperate to get rid of a property. Similarly, some executors are more interested in getting a property out of their hair than making money. Perhaps they can't afford ongoing advertising fees, or would just like to move on with their lives. Some websites, such as National Mortgagee and Deceased Estate Data, list only properties that are on the market from mortgagees, distressed sellers or housing authorities. Beware "discount" homes that have been languishing on the market. While you might find a property that's had its price cut by 70% since listing and has stood on the market for three years, it could be because the agent isn't doing their job and you've spotted an under-marketed gem. Or you could be getting sucked in by a property with an initial listing price triple what it deserves, that nobody else is touching because it's a dud investment. Proceed with caution. 
</li>
<li>
Spot the faults While searching for a home, you should always be on the lookout for any flaws or faults. Not only will it save you for buying a dud, but it could help you bring down the overall cost of the property. If you can get to the negotiation phase of a sale armed with a builder's inspection or a pest inspection document that shows the property is less than ideal, you could use those flaws to your advantage. This is also your opportunity to get creative. If there's a pile of rubbish on the property that the elderly seller has promised to get rid of before the settlement date, you could agree to take the property with the rubbish, with the cost of labour cut out of the sales price. Your elderly seller might have just saved themselves the trouble of organising labourers, and you've just exchanged some money for an afternoon of your time. Of course, it almost goes without saying - don't romanticise property problems. If you think you can use the leaky roof to negotiate down the sales price of your purchase, think first: do you really want a house with a leaky roof? Fixing problems down the line can often be more expensive than you anticipate at first, so only purchase if you're sure you can handle making improvements. 
</li>
<li>
Negotiate your terms There are two major aspects to a sale - the price and the agreed terms. If you make the terms good enough for your vendor, they may just be willing to move on the cost. For example, if you know your vendor is under time constraints and just wants to get rid of the property, getting in before the auction date and cutting the settlement time or waiving your cooling off period could be very valuable. Not only do such moves help your hurried vendor, but they also signal to the agent that you're confident and ready to make a purchase. To some, a first home buyer in the hand is worth more than 10 at auction next month.</li>
</ol>
Buying any first home is difficult, but buying a decent investment for a cheap price is even harder. Remember, a sale isn't all about you - it's about the seller, too. Keep them in mind and you could be securing a great home for less than you expect.
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First home buyer how to: Buying a property below market value

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Buying a home is tough work for those doing it for the first time, and with low numbers of first home buyers being reported it’s not surprising that many think it’s beyond their grasp.
To provide readers some inspiration, Property Observer will regularly be sharing stories of first time property buyers, and discussing their motivations. If you want to be involved, email <a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>.
Our first new buyer is 25 year old Rhys Roberts. Employed full-time in human resources with the state government in Tasmania, he disclosed that his salary is $70,000 a year.
Last year, he purchased a house in <a href="/news">Lindisfarne</a>, Tasmania for $340,000 with an 80% LVR. Lindisfarne has a median house price of $370,000, and rental income just shy of $350 per week, according to RP Data. It's a 10 to 15 minute drive to Hobart.
THE PROPERTY
Lindisfarne, Tasmania
<img src="/images/2014/08/08/image1.jpg" alt="">
PURCHASE PRICE: $340,000
LVR: 80%
He describes the property as built over two levels, with the top level including two-bedrooms and one bathroom, and a kitchen. The kitchen and bathroom had both been renovated six months before purchase; however, the bottom level was unfinished with dirt floors and exposed concrete, including existing rooms that has been used as a laundry and a workshop.
<img src="/images/2014/08/08/Floorplan%20-%2012%20Sunnyside.jpg" alt="">
Part of purchasing this property was renovating it. Roberts notes that to date the costs have been minimal as an outlay for fixing it up, and with the help of his father to cut down labour costs they have done most of the preparation for the unfinished rooms downstairs. The costs, including planning, which involves an architect, engineer and draftsmen, total $4,500 at present.
When asked to project the costs to complete the renovation of the property, he admitted this was a little tricker.
"Initially, the renovation encompassed turning the existing rooms on the bottom level into usable spaces,” he said. However, very recently he has taken the decision to expand the project and include an extension from the back of the house.
He noted this was due to previously unidentified issues, but said that his hopes were for additional equity to be unlocked by adding this part to the project. While his initial cost project for the renovation were at $25,000, the extension as pushed this up to somewhere between $60,000 and $70,000, yet to be finalised.
<blockquote>
"When I was buying my first property, I found that there was a huge amount of information out there, but very little aimed at a novice."
</blockquote>
The initial plans included an added bedroom and bathroom downstairs and a cosmetic fix. The new extension will be another bedroom and bathroom in the extension, a deck at the back of the house, a study/gym and large laundry/storage room in one of the pre-existing rooms.
“As this was my first property it was important to get it right,” Roberts explained of his investment strategy for the property.
“So while it had to have good capital growth prospects, the Tasmanian property market had been slow and showed little signs of picking up in the short [to] medium term. Therefore, the most important aspect was the ability to create equity through a renovation,” he said. This equity would then help fund future investments.
Q&amp;A with Rhys on the next page. Please click below.
<hr class="system-pagebreak">
Property Observer asked Rhys Roberts some questions about his thoughts on investing, property and why he bought in the first place.
Where did your interest in property come from? 
Basically from my parents. They had held rental properties in the past, and as Dad was a builder they had built or renovated properties throughout my childhood.
How have you educated yourself about property? 
In my late teens I started to develop a keener interest in property (which stemmed from my first real job, and the realisation that I didn’t want to work for someone my whole life!). I read as many books and articles as I could get my hands on, and this continued into my early twenties, by which stage I began saving for my first property. At the time I bought it I thought I was pretty knowledgeable with property, but the buying process just highlighted how little I really knew. It was from there that I dug deeper and started reaching out to other likeminded people.
What was the journey to finding your first property? 
I’d describe it as “long” (well it seemed it to me!). I first became serious about buying a property at 20, but at the time I was at University and working part-time, so saving was fairly difficult. At around 22 I decided to hit the saving hard, and I was lucky to have a pretty well-paying job and few expenses, so I could save up quickly. Looking back at it now, it only took around 3 years of serious saving to achieve a deposit, which in the scheme of things isn’t long, but at the time it seemed like forever!
As for finding the right place… once I was ready financially, it took around 6 months to find the one. I was pretty set on what I wanted, though. I knew that given the market in Tasmania was going nowhere fast, I had to create equity in another way. I didn’t have the capital to undertake a development (and the risk was too high for a first home buyer), so a renovation was the chosen method! It can be pretty disheartening looking at property after property, but in the end it was worth it, as the perfect property eventually came up.
What has been your biggest pitfall and your biggest highlight in property to date? 
Biggest pitfall is the same as any first home buyer: lack of experience. There’s some things that research just can’t compensate for, especially given the depth and complexity of most property info out there. I’ve made mistakes, numerous ones in fact, but none of them have been disastrous, and I’ve learnt invaluable lessons from them.
Given that I don’t have a shiny portfolio property to brag about, I’d say my biggest highlight in property has simply been sticking to my goals and finding the perfect property. It would have been a lot easier to go with a 95% lend and buy a normal house, but I knew that wouldn’t get me where I wanted to be. Also, it’s not easy to be a first home buyer these days. Prices can be a barrier depending on where you live, and Gen Y have different priorities these days. When your friends are out partying and travelling the world, it can be tough to be working and saving… but I know it will pay off in the long run.
Have you had any hiccups in the renovation process so far?
The biggest hiccup was when I found out I couldn’t renovate on the bottom level to the extent I wanted. There were issues with the foundations that would have required a very expensive solution to fix if I wanted to continue with the original plan. The issues weren’t picked up by three builders, an architect or a draftsman, so they came as a surprise when the structural engineer identified them. Moral of the story is to involve the experts as soon as possible. Even if it costs a few hundred dollars to get someone along to give an opinion, it will pay off in the long run.
<blockquote>
The Tasmanian property market had been slow, therefore the most important aspect was that he was able to to create equity through renovation.
</blockquote>
In the end, however, it will work out better than previously. The renovation will work out better financially (and that’s the only result that matters to me), even if it takes a little longer. The number one thing I’ve learnt so far, and from my parents, is that you have to be flexible, able to problem solve quickly, and have endless amounts of determination and persistence.
What is the financial plan at the end of the renovation? 
I sincerely hope to never a sell a property I buy, as I don’t see the point. Property is a long-term investment, and barring a true property dud, selling negates future growth opportunities.
Once the renovation is complete I will achieve around $100,000 in equity. This is enough to give me options, which is the name of the game!
Would you renovate again? 
Definitely reno again. In fact, I aim to reno all investment properties I own. Even if it’s just a pure rental, a cheap and quick reno can add $10 or $20 onto the weekly rent, which adds up over the long-term.
What is the vision for the end of your property investing? 
My end goal is to be completely financially independent by 40. I classify ‘financially independent’ as never having to work another day in my life for another person, unless I choose to. I don’t like to use the word retire, as I’ll hardly be sitting on a beach for the rest of my life. There is a very long list of things I want to achieve!
As for specifics… My goal is for $1.5 million in net assets that are wholly income producing. Given likely returns this will be enough to give me a very comfortable yearly income to live off. To achieve this in 10-15 years I estimate I will need around $6 million in total assets by then. These figures will be adjusted all the time, though. I expect that by the time I get close to it, my goals will have completely changed!
What is your back up plan for if things go wrong? 
All of my investment properties will be under a discretionary trust and/or company arrangement (yet to be determined). In addition to this, I aim to always hold my first property in my name. Given the asset protection given by company and discretionary trusts, if everything were to go completely pear shaped, I would still have a property and my job to fall back on. Where possible, however, I aim to have an 80% LVR for all properties, as this provides a significant buffer, and also assists in keeping in the good books with lenders.
What advice do you have for other first timers?
Know what you want, and then work out the best way to get there. So many first home buyers rush into what is going to be the biggest financial decision of their lives so far (by a big stretch). Take the time to work out why you want to buy, because unless you know that, you’re opening yourself up for trouble. Maybe you’ll reach the conclusion that buying isn’t right for you, that renting suits your lifestyle needs better, and that’s fantastic! Decide what it is you want most, and pursue it with everything you’ve got.
It sounds like an intense plan, and Property Observer is keen to see how it pans out.
In the meantime, Roberts started up a site called <a href="https://www.thepropertydream.com" target="_blank">The Property Dream</a> to share information he had found and chat with other likeminded young investors.
“When I was buying my first property, I found that there was a huge amount of information out there, but very little aimed at a novice, and none that covered the buying process from start to finish for first home buyers,” he said.
“There were some resources that were close, but they always involved payment of some sort, and I think that such information should be freely available. It’s not a state secret, it’s basic information that everyone should know.”
He explains that given time he’d like to see a community of new buyers using the site, and sharing their own thoughts and information.
Are you a new buyer that would like to be profiled, or know someone who should be? Email <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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My first property, a renovation and what I learnt: Rhys Roberts

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

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Senator Nick Xenophon's proposed legislative changes to allow first home buyers to access their superannuation funds for a deposit on their first homes have seen many different reactions from property experts.
“With more and more Australians finding it difficult to break into home ownership, adopting the Canadian scheme would make a difference to many thousands of Australians each year,” said Xenophon.
The Canadian scheme allows first home buyers to extract C$25,000 for the purchase of their first home, which must be repaid into the fund within 15 years.
The scheme has been supported by some industry groups and businesses and derided by others.
Property Observer took the question to the experts: Should first home buyers be allowed to access their superannuation to fund the deposit on their first home?
Catherine Cashmore: market analyst <img src="/images/authors/fullbody/Catherine-Cashmore.png" alt="" align="right">
Nick Xenophon, along with other groups, such as the REIA, is advocating a policy that will be responsible for making housing affordability worse.   The procedure in Canada allows eligible buyers to withdraw up to C$25,000 tax-free from their retirement fund, on the condition that they pay it back over a 15-year period.   
If they fail to do this, the amount withdrawn will be taxed as per the income earner's tax bracket. Currently, 35 per cent of Canadians fall into this category. However, according to the CRA, roughly one out of two (47%) contributed less than the required repayment amount over the 2011 tax year.    The Government picks up the added income revenue windfall.
Buyers, buoyed by a rent seeking culture that fools the public into believing such policies are designed to be ‘helpful’, over stretch their budget and are left to carry the can in weak economic conditions.   In short - you borrow money from yourself at 0% interest and in doing so lose 15 years of compounding 'tax free' interest with average returns in the order of 7%.    
Many low to middle-income individuals have inadequate funds to draw upon. So even assuming the scheme were to be effective, the difference it can make to those that need the help is limited.   
But the real ‘nub’ of the issue, which Nick Xenophon has failed to acknowledge, is that the Canadian Home Buyer Plan was never intended to aid affordability.    It was promoted by the real estate industry following the 1990s recession to stimulate land values and benefit the FIRE (finance, insurance, real estate) sector, along with its economic offshoots - renovations, furniture and appliances, moving costs, tax revenue to government and so forth. The FIRE sector has lobbied to keep in place ever since and also pushed for the threshold to be raised.
Craig MacKenzie: RP Data executive general manager commercial, with research analyst Cameron Kusher<img src="/images/2014/08/06/CraigMackenzie.jpg" width="150" height="225" style="float: right;">
Pros:
<ul>
<li>Buyers need genuine savings given the price of housing in cities Sydney and Melbourne and the cost of renting saving deposit is extremely difficult, accessing superannuation would make it easier</li>
<li>Genworth reports that 1 in 4 first home buyers need assistance from their parents to enter the market, by accessing superannuation they remove the burden from the parents</li>
<li>In some instances tapping superannuation would mean that the purchaser doesn’t have to pay LMI on their purchase which would reduce the cost of purchase</li>
<li>The retirement savings pool is one of the largest in the world unlocking a portion of it would enable first home buyers to access one of the most basic human need, shelter</li>
<li>Superannuation is about forced saving for retirement, a home for owner occupation is a long-term investment so the horizons are aligned.</li>
<li>Ultimately the position is neutral with the Canadian scheme seeing the amount withdrawn from Canadian Registered Retirement Savings Plan’s (RRSPs) repaid over 15 years.</li>
</ul>
Cons:
<ul>
<li>Accessing Superannuation doesn’t address the key reason why FHB can’t purchase a home, that is that it is too expensive in many areas particularly those areas close to city centres and around major working nodes. </li>
<li>By accessing Super to purchase a home it would potentially increase home values further, much like the First Home Owners Grant has</li>
<li>Utilising Superannuation would allow FHB to buy in a location they otherwise couldn’t afford to, is this really a good policy given buyers should by in a location which is aligned with their current means to repay a mortgage.</li>
<li>The Canadian scheme doesn’t appear to have any penalty or interest associated with withdrawing that money.  The amount is paid back over 15 years however, that is 15 years over which that money could have compounded if invested elsewhere.</li>
</ul>
It should be noted that Canadian RRSPs are somewhat different from Superannuation as they are set up by individuals and in most instances employers don’t contribute to the plan.  It is about saving for retirement however, there are no compulsory contributions from the employer rather an RRSP is set up by the employee to save for retirement.
 
Turn over page for more responses, from Philip Soos, Helen Hodgson and Peter Bushby.
 
 
<hr class="system-pagebreak">
 
Philip Soos: economist, author and Deakin University PhD candidate<img src="/images/2014/08/06/soos-profile.jpg" width="150" height="180" style="float: right;">
<div>I staunchly oppose the suggested policy advocated by Senator Nick Xenophon, which allows potential first home buyers to access their superannuation to finance a deposit. Simply put, it acts likely a privately-financed First Home Owners Grant/Boost, which has the intended effect of distorting (and increasing) housing prices.</div>
<div> </div>
<div>One of the most popular interventions in the housing market has been the use of federal government homeowner cash grants, in one form or another. They are implemented on the pretext of helping Australians realise the so-called dream of home ownership. This is false, however, as housing prices outpace the amount of the FHOG/B by a considerable multiple due to the additional leverage bank credit enables.</div>
<div> </div>
<div>Put another way, the FHOG/B is rendered null and void, as it is simply capitalised into higher prices from the moment of its availability. The FHOG has the effect of pulling forward demand for housing into the present, with first home buyers stampeding into the housing market.</div>
<div> </div>
<div>The pretext for superannuation is to help retirees, but in reality is designed as a pork barrel for the financial sector, which creams off approximately $19 billion in fees annually. Bankers already benefit from regulations allowing homeowners facing foreclosure to raid their super.</div>
<div> </div>
<div>Xenophon’s policy makes it doubly worse – another gift to bankers through higher housing prices, larger loan portfolios, and rising net interest income. This senator owns eight properties; it is clear he advocates this policy out of self-interest, not out of any concern for first home owners. It is designed to increase home prices, not home ownership.</div>
<div> </div>
<div>
Helen Hodgson: associate professor, Department of Taxation at Curtin Business School, Curtin University <img src="/images/2014/08/06/Helen.Hodgson.png" width="150" height="167" style="float: right;">
</div>
<div> </div>
<div>Secure housing is important to wellbeing in retirement, but as the superannuation guarantee increases to 12% first home buyers hoping to enter the market will find it increasingly difficult to save a deposit. There are three major hurdles to the proposal to allow access to superannuation: 1. Increased demand increases house prices in the relevant price range: as Saul Eslake notes, first homebuyer grants end up in the pockets of vendors. Stamp Duty concessions have been scaled back with some states limiting them to new construction to stimulate housing supply. A similar strategy here could limit house price rises due to increased first home buyer activity. 2. Superannuation is a tax preferred investment, and allowing superannuation withdrawals would exploit this tax advantage. The accumulated superannuation balance is higher than other investments, and a salary sacrifice strategy could take advantage of this. This could be counteracted by taxing withdrawals at the marginal tax rate, less the tax paid by the fund. 3. The funds must be used to acquire and continue to use the property as a residence. There should be a requirement that if the person moves out of the property the funds must be repaid, coupled with compliance measures.</div>
<div> </div>
<div>This article continues on the next page with thoughts from Peter Bushby and Terry Ryder. </div>
<div><hr class="system-pagebreak"></div>
<div> </div>
<div> </div>
<div>
Peter Bushby, Real Estate Institute of Australia president <img src="/images/2014/08/06/bushby-profile.png" width="150" height="200" style="float: right;">
</div>
<div> </div>
<div>It's been part of our (the REIA's) policy for many years now that it should be considered as a possibility, as long as it's packaged correctly, and as long as it doesn't harm, or have a negative effect on superannuation funds, and [first home buyers] would be paying it back in the longer term. We certainly believe it would be a tool to assist first home buyers., It would actually allow a lot of people to take advantage of and enjoy the benefits of home ownership that they can't quite get at the moment. They might be able to get the money at the end of the day, but if they got it earlier, it could be far more valuable to them, rather than renting and paying off someone else's mortgage. We believe that it is a viable option. Of course you'll get a negative reaction from the super funds and so on, but we believe that as long as it's operated properly, it could be very valuable. There are a couple of schemes that operate well around the world. We've identified Canadian and Singaporean schemes that could be translated, though obviously it would work differently here. But the Canadian scheme in particular could be useful to look at. It's about looking at the elements of it that would work best in our market without damaging existing super funds.</div>
<div> </div>
<div>Terry Ryder, founder of hotspotting.com.au <img src="/images/authors/fullbody/Terry-Ryder.png" width="135" height="186" style="float: right;"></div>
<div>
<div> </div>
<div>Nick Xenophon is suggesting a solution to a problem that does not exist. And, in the process, weakening the solution to a problem that does exist.</div>
<div> </div>
<div>Xenophon's proposal is based on the premise that we have an affordability problem in Australia. All the evidence suggests that we do not.</div>
<div> </div>
<div>Before we start implementing solutions, we need to properly understand the "problem". It is assumed that, because first-home buyers are apparently less active than before, there can be only one explanation - that they cannot afford to buy. The evidence suggests another reason: that young adults are not interested in buying. They have other priorities. Their parents were married with kids and a mortgage before the age of 30, and today's generation doesn't want that. </div>
<div> </div>
<div>So we don't need Xenophon's solution which, while addressing a non-existent problem, would weaken the solution to a very real existing problem. And that is the rapidly ageing population and the need for people to fund their retirement - for which superannuation is critical. Superannuation funds should be sacrosanct.</div>
</div>
  
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Exclusive: The experts on super access for first home buyers

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First home buyers are fighting with a 100 pound gorilla with one arm tied behind their backs as they compete with investors who have the luxury of negative gearing and superannuation funds.
I believe the answer to improving affordability lies in rethinking superannuation laws and first home buyer grants.
Historically the family home has been the corner stone of ones wealth but this is in danger of being lost. Superannuation was implemented to help people self fund their own retirement and compliment the wealth in their family homes. I believe that allowing first home buyers to access their super and assist them in laying that foundation keeps within the spirit of superannuation.
A worker who earns the average Australian income of $50,000 a year will have around $36,000 in super by the time they are 30 not including any return on their investments. As a couple that is $72,000! They also have the benefit of diverting more of their income into a tax-sheltered environment. It would not be unreasonable for a first home buying couple to have in excess of $100,000 in super by the time they want to purchase their first home.
A large deposit like this would mean first home buyers have more equity in their home and as a result in a more stable financial position. It would also save a significant amount in interest. For example if a first home buyer had a $100,000 deposit they would only need to borrow around 80% of the property value rather than 90% or more. On a $500,000 home that would save them $2,500 to $3,000 per annum in interest.
They would also avoid paying a hefty mortgage insurance bill of around $5,000 to $10,000 in most cases.
Buying a property is only the first step to home ownership. Keeping up with the mortgage payments is where the real pain starts to bite. If governments really want to help with home ownership they should look at providing ongoing assistance and review first home buyer grants.
First home buyer grants have evolved over the years but on average they provide first home buyers with around $10,000 cash or stamp duty saving benefits. Rather than paying first home buyers a lump sum payment that is usually paid to the banks for mortgage insurance, I believe annual payments will be more effective and a better use of taxpayer money. An annual payment of $2,000 a year for the first five years would help first home buyers establish themselves in the market.
While the devil is in the detail the points outlined above provide a win-win outcome. The government wins as it helps solve first home buyer affordability at no extra cost. The economy wins, as more money will flow into the important building industry. First home buyers win as they will enter the market without paying mortgage insurance and save around $5,000 per annum in holding costs for the first five years.
There is a potential downside in that it would place further pressure on property prices. However this is already happening even without first home buyers and these ideas will go a long way to levelling the playing field between first home buyers and investors.
They would help young Australians into the market and start the process of building wealth in one of our most powerful tax-free investments – our home.
MARK ARMSTRONG is a director of <a href="https://ratemyagent.com.au/" target="_blank">ratemyagent.com.au</a>, Australia’s number one real estate agent rating website.
This article was originally published on Property Observer in October 2013.
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Allowing first home buyers access to super is the answer to the affordability dilemma

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When first home buyers are saving, it's often all about the deposit.
When they've saved 5% or 10% of the purchase price, they're likely to then find that a number of other costs delay their home ownership dream for even longer.
What are these costs, and how much do you need to be prepared to save?
Let's assume you're buying your first home. We’ll take Sydney’s median price, at $650,000 as of 31 July, according to RP Data, although it’s unlikely all first home buyers will be considering a purchase at the median price.
With that being said, we’ll imagine that you have a 5% deposit - $32,500.
It's an established property, and not that far from where you currently rent. If you’re looking to buy new then under the current grant system in New South Wales <a href="/expert-insights/buying/what-grants-are-available-for-first-time-buyers-a-state-by-state-guide">you might be up for some benefits</a>.
CURRENT TOTAL: $32,500
The loan process will cost you something like the following:
This means you'll be taking out a $617,500 loan and that you'll need lenders mortgage insurance (LMI) due to your low deposit. This varies from lender to lender, and if you’re <a href="/expert-insights/investing/less-than-a-20-deposit-the-8-things-you-need-to-know-about-lenders-mortgage-insurance-lmi">not sure what LMI is, here are eight things you should know</a>.
You can also read about <a href="/expert-insights/finance/what-is-an-lvr-investment-terms-explained">LVRs here</a> (loan to value ratio).
At the Commonwealth Bank, it's estimated at just under $27,500.  Some lenders do allow you to capitalise, that is, add this to the top of the loan amount. In this instance, you’ll be looking at around $210-$215 per monthly loan repayment extra, rather than needing to foot the bill upfront.
However, for the sake of this exercise, we'll assume you will pay the fee upfront to avoid paying further interest down the track.
CURRENT TOTAL: $60,000
You then have duty to pay on the loan amount. There is also around $25,000 in stamp duty (this varies by state).
The relevant Office of State Revenue can assist in working out this fee. In some states and territories there are significant stamp duty reductions for eligible first time buyers, particularly those buying new.
CURRENT TOTAL: $85,000
You will need to register your mortgage - usually a flat rate of about $100. And then you can throw in the establishment of loan fee and legal costs which, together, usually amount to around $1,000.
CURRENT TOTAL: $86,100
Looking at the buying process and ignoring 'hard to calculate' costs such as your own time, travel expenses and similar as you search (as well as any paid-for online searches that some will undertake), you can easily estimate up to another $1,500 in checks (such as building and pest inspections, which can typically be around $500) and legal expenses in the buying process as well.
CURRENT TOTAL: $88,100
After all is said and done, you then need to pay for your moving costs from where you currently live into your new home.
Assuming that our buyer in this situation is a renter in a smallish apartment, let's assume that cleaning costs may amount to $100 (for carpet steam cleaning) and then some moving costs. Service Central estimates up to $500 for a couple living in an apartment. If you're moving interstate or from long distances away, this could easily span into the thousands of dollars.
CURRENT TOTAL: $88,700
OTHER POTENTIAL COSTS:
<ul>
<li>Buyer's agent fee 
</li>
<li>Connection fee for services (not common) 
</li>
<li>Contents insurance 
</li>
<li>The "unknown" factor. Perhaps you will have minor renovations or home improvements, such as painting, to make your place feel like home. You may even need to purchase new furniture or similar.</li>
</ul>
How much did it cost you to buy and move into your latest property? What other hidden costs have you noticed?
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What does a home really cost for a first time buyer?

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GUEST OBSERVATION
The draft proposal to allow first home buyers to access up to $25,000 from their superannuation to buy their first home is absolutely ridiculous.
The whole concept of superannuation itself is to provide compulsory savings for people who are working, so they have a fund tofall back on when they retire.
At some stage in the future, Australia will not have a pension. Superannuation is a forced saving scheme, so people who are working now become self-funded retirees.
If first home buyers are able to access their superannuation in the first stage of their working lives - and most of them are under 30 years of age - they'll be taking a large lump sum of money that will take away massive growth from the early stages of their fund's growth.
What's appears to be a little problem now will turn into a catastrophic event when it's time to retire. It will just create another push on affordability, from a different angle.
If the policy goes through and it sees a big take up, we could see house prices go up, through greedy developers.
When there was the full switch over to first home owner grants for only new properties, you saw prices increase overnight for new house and land packages. One day they were $310,000, and the next day they were $330,000.
Superannuation is a very heavily governed industry. So I'm sure the take-up will not be as big, initially, as ASIC oversees the superannuation industry and it will be heavily regulated. But if it does take off, you will definitely see the sharks out there taking advantage and putting prices up.
Rather than dipping into their funds, and trying to outstretch themselves, first home buyers should rethink where they want to buy. If you can't afford to buy in an area, you shouldn't be trying to live there. If you can't afford to save a deposit for a home after paying rent, that also says you probably can't afford to live there.
Instead of taking money out of their super, first home buyers should think about changing their spending behaviours.
As a society, we have people to mow our lawns, we buy a coffee each day, we have our clothes dry cleaned, we're having our cars washed. We even have our dogs washed! 20 years ago, that never happened. It's about getting back to basics.
Every week, when you get paid, you should be putting some money aside. Some say, "that money simply isn't there". If that's the case, you're probably living in an area out of your budget. You should be able to save some money, even if it means you can't live in the most desirable part of Sydney or Melbourne. People are certainly living beyond their means.
You might need to live in the outer suburbs. Sydney is the worst location for affordability, even in the outer suburbs - so it might mean you need to consider moving to Melbourne. On the outskirts of Melbourne, there are plenty of new houses available for $300,000.
When I bought my first property, it was a little one bedder, and certainly not ideal. I saved by bum off to get a deposit together. And there wasn't a first home owners grant either. Homes are a lot more expensive today, but incomes are also a lot higher.
Of course, some industry organisations will support the proposal. Everyone has an agenda. Everyone wants to see a "good" property market. The developers want to sell properties. The real estate agents have to sell properties. They're obviously going to support it. The building associations obviously support it as well.
In reality, first home buyers need to rethink how they save for their first property.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
He reached a personal investment portfolio of 50 properties in 2006 and has also started building an SMSF portfolio.
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Allowing first home buyers access to their super isn't the answer

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Across the country, numerous changes have been made to first home buyer grants (FHOG) and eligibility requirements.
There are, however several common eligibility factors that are a constant across the country.
If you have previously owned a home this could impact upon the chance of your application being successful. However, some states allow previous ownership of investment properties, if they were purchased between certain years.
Usually, if you have a spouse or a de facto partner who already owns a property, you will be ineligible for the FHOG. For de facto couples, residency is required for at least one person.
Occupation of the property purchased using the grant is also required for a set amount of time, during the first 12 months of ownership.
You will also need to fill out the application form in a timely manner after purchase. Check whether your respective government uses the settlement date or the contract date as their key marker when assessing applications.  If you are intending to buy in a location that will be affected by an upcoming change to the grant this is even more crucial.
Those who fail to fulfil the occupation requirements will be required to refund the money received and may also find themselves financially penalised.
If you're interested in how you apply for these grants, here's a comprehensive explanation.
Here are the grants current accessible by first time buyers, as per information available from the respective Office of State Revenues and Treasuries. Australian Capital Territory
First home buyers in the ACT can receive $12,500.
This is only available for "new" or "substantially renovated" property worth $750,000 or less.
New or substantially renovated properties include:
<ul>
<li>A home that has not been previously occupied or sold as a place of residence; or</li>
<li>A substantially renovated home that, as renovated, has not been previously occupied or sold as a place of residence; or</li>
<li>A property which is subject to an "off the plan" purchase agreement.</li>
</ul>
There is no grant available for purchasing established houses.
As a condition of the FHOG, buyers will need to occupy the property for 12 months upon completion of the dwelling.
To claim the grant, you will need to apply in a one year time period starting from either the settlement or date of issue of the Certificate of Occupancy.
Owner builders can only lodge after the home has been completed.
Payment of the grant is usually then made within 10 days of lodgement.
First home owners who fulfil the requirements for the grant may also have the opportunity to defer their stamp duty.
New South Wales
First home buyers in NSW can receive $15,000. From 1 January 2016 this will be reduced to $10,000.
This is only available for to buy a new home or to build your own new home. The property is required to be worth $750,000 or less.
Properties that are applicable include:
<ul>
<li>A home that has not been previously occupied, including occupation by the builder, a tenant or other occupant;</li>
<li>A home that has not been previously sold as a residence. Where the home is being purchased, it must be the first sale of that home;</li>
<li>A home that has been substantially renovated and a home built to replace demolished premises.</li>
</ul>
There is no grant available for purchasing established houses.
As a condition of the FHOG, buyers will need to occupy the property for a six month continuous period, within 12 months of completion.
Duty exemptions are available when purchasing new properties valued up to $550,000 and concessions exists for those from $550,000 to $750,000.
Those buying vacant land will pay incur no duty on vacant land valued up to $350,000 and concessions exists  for properties valued between $350,000 to $450,000.
To be eligible, you must not have owned and occupied (for more than six months) a home in Australia after 1 July 2000 and you cannot have owned a property before this time.
ALSO READ:<a href="/news/everything-you-need-to-know-about-the-nsw-first-home-buyer-15-000-grant-scheme"> Everything you need to know about the NSW first home buyer $15,000 grant scheme</a>
Article continues on next page. Please click below.
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Northern Territory
First home buyers in the Northern Territory can get up to $26,000 towards their first purchase, with established first time buyers not left out of the picture either.
But from 1 January 2015, the First Home Owners Grant will be redirected solely to first home buyers looking to buy or build a new home.
Currently, as of 13 May 2014, there exists a transaction eligibility threshold (in plain English, this essentially means that the property can only be worth up to a certain amount) for established properties of $600,000. Prior to this time, both new and established properties were given a limit for grant eligibility.
An established home is one that has been "previously sold or occupied, and is lawfully fit for occupation."
A new home is considered one that has never previously been lived in or sold as a place of residence.
However: "To prevent anomalies, a discretion applies in limited circumstances to declare a home that has been previously sold, but not occupied, to be a new home."
From 13 May 2014 to 31 December 2014, a new home can bring in $26,000. Meanwhile, an established property in an urban area will be provided $12,000, and everywhere else will be given $25,000. The only material difference in grant money compared to 4 December 2012 - 12 May 2014 is an extra $1,000 for new homes (and threshold changes). An "urban area" means land that sits within the Darwin, Palmerston or Litchfield municipalities. It also covers Wagait Shire, the Darwin Waterfront Precinct, the "prescribed area" for the Darwin Rates Act and other areas potentially proscribed by regulation.
Since December 4, 2012, there has been no stamp duty concession for first timers.
Queensland
Queensland first time buyers can get themselves $15,000 when purchasing a new home. Unfortunately, nothing remains for first time buyers who are purchasing established properties.
Their Great Start Grant, previously being known as the First Home Owner Construction Grant, has been available for those buying new (or substantially renovated properties) since 12 September 2012.
If you previously held any interest in residential properties before 1 July 2000, even if it was an investment property, you're not eligible. Those who have had a property since - but used it solely for investment purposes and did not live in it - may be eligible. You'll need to give them tax return details, tenancy agreements and current electricity and phone accounts.
Grant applications are processed within 10 days of receiving the information.
Those looking to get the grant then must move into the property within one year of completion, and live there for six continuous months.
South Australia
South Australian first time buyers are currently eligible for a FHOG on new homes and established homes - however, since 30 June 2014 the grant hasn't been available for established properties.
The property value must not exceed $575,000.
For those buying a new home, a $15,000 grant has been available since 1 January 2014.
If you previously held any interest in residential property before 1 July 2000, even if it was an investment property, you're not eligible. Those who have had a property since - but used it solely for investment purposes and did not live in it - may be eligible. You'll need to give them tax return details, tenancy agreements and current electricity and phone accounts.
After the property is built, you must then live in the property for six months commencing within 12 months of completion.
Off-the-plan properties may also be eligible for a stamp duty concession for a new apartment or substantially refurbished apartment. A full concession was available for properties from 31 May 2012 to 30 June 2014, capped at the stamp duty payable on a $500,000 apartment (or $21,330). A partial concession now applies, from 1 July 2014 to 30 June 2016.
The concession does, however, apply to specific areas as outlined on the Revenue SA site and associated maps.
Article continues on next page. Please click below.
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Tasmania
Currently, established and new properties can receive a benefit for first time buyers, with up to $30,000 available. As in many other states and territories, this was altered from 1 July 2014, and saw established home buyers lose some benefit. Established property buyers can currently get themselves $7,000.
For new properties, the First Home Builder Boost has increased since 7 November 2013 from $8,000 to $23,000, and applies until 31 December 2014. Those eligible for this would also be eligible for the $7,000 FHOG, bringing their total payment to $30,000.
To be eligible, you must not have owned and occupied (for more than six months) a home in Australia after 1 July 2000, and you cannot have owned a property before this time.
When you get the FHOG, you need to live in the property for a continuous six months within 12 months of the data that the certificate of occupancy is issued.
Victoria
Only new properties get first time buyers a grant in Victoria, as of 1 July 2013. A payment of $10,000 is available.
It is only available for properties that do not exceed $750,000 in value, apartment from properties on primary production land.
You must live in the property for 12 months continuously, within 12 months of settlement.
The reduction in duty is becoming increasingly attractive - initially, 20% was reduced on 1 July 2011, followed by 10% on 1 January 2013, 10% on 1 July 2013 and an upcoming 10% on 1 September 2014.
Western Australia
A $10,000 grant for first time buyers purchasing or building a new home has been available since September 2013. Those looking to buy an established property may be eligible for a $3,000 grant.
A cap to first home owner grants was introduced in early 2010. To be eligible for a grant, your home must cost less than $750,000, though this threshold increases to $1,000,000 if your home is located north of the 26th parallel. You can't receive a grant if you owned a residential property after 1 July 2000 and occupied it at all prior to 1 July 2004, or more than six continuous months after 1 July 2004. You must live in the property you're intending to buy with your grant for a continuous six months within 12 months of completion.
The Home Buyers Assistance Account, which can provide $2,000 in help, is an extra benefit for West Australian first timers. This $2,000 comes from interest paid on real estate agents' trust accounts. Essentially there for 'extra' fees around buying, like solicitor and valuation fees, you can only use it for properties costing $400,000 or less. Your purchase must be a established or partially-built home and you must live in the home for the first 12 months. You must purchase the property through a licensed real estate agent, have the loan financed through a lending institution. To be eligible it must also be your first property purchase in Australia.
First home owners also receive a discounted stamp duty rate. Established homes must not be worth more than $530,000 (as of July - this was previously $600,000) to receive the discount. No duty is payable up to $430,000 value (previously $500,000). Above that threshold, $19.19 per $100 is payable (previously $22.51). For vacant land, no duty is payable up to $300,000, and after this $13.01 per subsequent $100 is payable. For vacant land, you will need to pay this upfront and then retrieve a refund on receipt of the FHOG - once you have completed the build. The land cannot be worth more than $400,000.
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What grants are available for first time buyers? A state by state guide

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PARTNER CONTENT
Buying your first property can be one of the most exciting moments in your life.
All those times of declining invitations to shop, dine-out and have caramel syrup in your latte have finally paid off.
With your financial details and a sizeable deposit in hand, you head to your mortgage broker to get pre-approval before you start your search.
Something that you may not have known is that the deposit you have is about to shrink by somewhere between $5,000- $25,000 and there’s nothing you can do to avoid this.
When buying a property there are a number of professionals that you have to engage as well as services and fees that are required to be paid during the transaction. Some of the essential costs involved are listed below. All fees vary due to property, state or territory and your personal circumstances.
<ul>
<li>
Transfer Duty </li>
</ul>
Transfer duty is a government fee that must be paid on dutiable transactions for property. This varies between states and the type of property purchased and may be reduced by government grants. Fees range from $1,000 to $25,000 plus.
<ul>
<li>
Lenders Mortgage Insurance </li>
</ul>
This protects the lender in the unfortunate event that you default on your home loan. This will vary due to the structure of your loan and your deposit. Fees range considerably, so allow 3% of your loan amount.
<ul>
<li>
Settlement costs </li>
</ul>
Expenses during the settlement of the property, these include body corporate, rates and valuation shortfalls amongst others. Fees range considerably, so allow up to 3% of your purchase price.
<ul>
<li>
Conveyancing or Solicitor fees </li>
</ul>
Fees range up to $3,000 for legal advice and services throughout your purchase.
<ul>
<li>
Mortgage Application fees </li>
</ul>
This will cover the preparation of the loan and supporting documents, valuations and searches by your financial institute. Fees range up to $2,000.
<ul>
<li>
Building Inspection </li>
</ul>
This is a written account of the property that will give you an indication of any defects or problems. Fees range from $300-$900 plus, depending on services.
There are also a number of other fees that you may have to cover that can quickly add up. These include utility connections, home and contents (or landlord) insurance, moving services and even mail redirections. Some of the essential fees can be incorporated into your mortgage, but others have to be paid up front.
As a guide, be prepared to put aside 10% of the purchase price to cover the costs involved in buying your property. We’ve put together some scenarios for buying in Queensland and New South Wales as a first home buyer and as an investor to show the type of consideration necessary for a safe and financially stress free purchase.
<img src="/images/2014/08/01/fhb%20partner%20aug%201.jpg" alt="">
Purchase costs are something that first time property buyers are often unaware of and as a result overlook them when saving for their deposit.
Preparing to use 10% of the purchase price on additional costs can be daunting as you see your deposit suddenly dwindle. But it is best to find yourself with money left over after your purchase than scrambling around at the last minute asking family and friends to help cover the shortfall.
Andrew Herbert is partner of <a href="https://myfirstplace.com.au/Property-Observer" target="_blank">My First Place</a>.
My First Place is offering a buyers club to take care of some of the fees involved in purchasing.
For first home buyers there’s a package worth $4,200 that covers solicitor fees, mortgage application fees, building inspection, insurance and utilities.
For investors, the package is worth $3,350 and it covers solicitor fees, mortgage application fees, building inspection, landlord insurance and a depreciation schedule.
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