Longstanding Gold Coast and Canberra developer <a href="https://www.apartments.com.au/developers/morris-property-group">Morris Property Group</a> is continuing to roll on with its Glitter Strip apartment pipeline, seeking to return to Mermaid Beach with a new 68-apartment development.

Morris, founded by Barry Morris in 1978 and one of the Gold Coast’s most prolific apartment developers over the past two decades, has filed plans for a 12-storey mixed-use building at <a href="https://www.apartments.com.au/new-apartments/36-seabeach-avenue-mermaid-beach-qld-4218">34-36 Seabeach Avenue</a>, on the prized eastern side of the Gold Coast Highway.

The 1,227 sqm site occupies a prominent corner position at Seabeach Avenue and the Gold Coast Highway, opposite the Mermaid Plaza retail and office precinct and around 140 metres walking distance from the future Mermaid Beach South light rail station.

<a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a> has designed the project, which will comprise 68 apartments across a mix of 48 two-bedroom and 20 three-bedroom residences.

The building will rise 12 storeys, reaching a maximum height of 36 metres, with the apartments accounting for a total of 156 bedrooms. The development application also seeks approval for short-term accommodation across the 68 apartments, while two office tenancies are proposed at ground level.

The plans show 108 car spaces across the development, with parking accommodated at ground level and within a three-level basement accessed from Seabeach Avenue.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="c2175c99-12fd-4a3c-9be1-89bbf258a90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.41%E2%80%AFPM_0.png?VersionId=iNLzWcE6gaAE76rafhEXfHve.4g4Se0p" />

Resident amenity will be concentrated on level two, where Fraser &amp; Partners has designed a recreation deck with a swimming pool, 90 sqm pool terrace, outdoor barbecue area and gym.

The broader communal offering will also incorporate landscaped spaces, with the planning documents noting the amenity has been designed to provide areas for recreation, social interaction and outdoor living.

The proposal would continue the transformation of the Gold Coast Highway corridor through Mermaid Beach ahead of the arrival of the light rail.

The site is zoned Neighbourhood Centre and sits within the Mermaid Beach/Broadbeach Light Rail Corridor neighbourhood plan. While the prescribed building height is 24 metres, the site is identified within an Urban Neighbourhood context providing for a 50 per cent height uplift to 36 metres.

Planning documents describe the stretch of the Gold Coast Highway between Broadbeach and Nobby Beach as increasingly characterised by medium and high-rise development, with the proposed Morris tower joining projects including Ventura, The Alfred, Oceans and Otto.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="911f193f-e381-4a55-be08-58be87fcf978" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.48%E2%80%AFPM.png?VersionId=oxVvLJaY.SOXEdXrIcogfyEXDfvCmmpM" />

The development would mark Morris Property Group's latest investment in Mermaid Beach, where it has already delivered two apartment projects.

Otto, at 1 Bondi Avenue on the western side of the Gold Coast Highway, comprises 70 apartments across nine storeys. The project was completed in 2019 and includes a residents' gym, recreation deck and swimming pool.

Morris also developed Oceans at 46 Ocean Street, a nine-storey, 70-apartment build-to-rent development completed in 2019. Oceans was the group's first build-to-rent project and incorporates commercial space at ground level.

The two existing Morris projects sit further north along the same Gold Coast Highway corridor as the proposed Seabeach Avenue development. Fraser &amp; Partners' planning analysis specifically identifies both Otto and Oceans among the established built-form precedents surrounding the site.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="14925119-7b71-4812-8149-340317512c7c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%203.00.15%E2%80%AFPM.png?VersionId=aEJqYuw_nTCjcin17BSD0piB1EFotTlj" />

Mermaid Beach represents only part of Morris' considerable Gold Coast footprint.

The family-owned developer has been particularly active in neighbouring Broadbeach, delivering projects including Sierra Grand, Eclipse, Synergy, Qube, Koko, Opus and Malo, while its current pipeline includes Maison and the two-tower Crest development.

Further south, Morris has also developed a string of projects in Burleigh Heads, including Element, Boardwalk and Sandbar, while Essentia expanded its footprint north into Surfers Paradise.

The Seabeach Avenue application has been lodged by PMM Broadbeach Pty Ltd and seeks a development permit for a Material Change of Use for multiple dwellings, short-term accommodation and office uses. Zone Planning Group prepared the planning application, with Fraser &amp; Partners commissioned as architect.

The project comes as the developer continues to expand its Gold Coast pipeline while retaining a significant presence in Canberra. Morris now has more than $2.5 billion of development in its national pipeline and has delivered more than 7,000 homes during its near five-decade history

Joel Robinson

First look: Morris Property Group returns to Mermaid Beach with new Seabeach Avenue apartment development

<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developers/fortis&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw3hvFB2uWTRfEyEcpTSnnK9" href="https://www.apartments.com.au/developers/fortis" target="_blank">Fortis</a>&nbsp;is continuing its stronghold on Sydn​ey’s eastern suburbs apartment market, launching&nbsp;in September&nbsp;its latest boutique&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developments/double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw0GI5S9-wNeiLUnM-d1uYkw" href="https://www.apartments.com.au/developments/double-bay-nsw-2028" target="_blank">Double Bay</a>&nbsp;development,&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw2YNouJQcFjiTTgVHbgDLA-" href="https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028" target="_blank">55 William</a>.

55 William presents&nbsp;just eight north-facing&nbsp;two-bedroom, three-bedroom and full-floor&nbsp;residences to the market, priced from $4.5 million.

The upcoming launch comes just weeks after Fortis secured approval for the $80 million development, its third eastern suburbs approval in two months. Construction is already underway, with completion targeted for 2028.

[smartcode_project:default project_id=152579 project_image_fid=376250]

55 William adds to a growing concentration of Fortis projects in and around Double Bay, a market the developer has become increasingly active in over recent years.

Fortis previously completed the nine-residence Marmont on New South Head Road, while it is currently developing a mixed-use residential and retail project at 12 Cross Street. Its wider Double Bay footprint also extends into commercial and retail development.

The developer's broader Sydney residential pipeline is particularly concentrated across the eastern suburbs, with projects spanning Doub​le Bay, Ro​se Bay, Wo​ollahra, Dar​ling Point, Poi​nt Piper and Eli​zabeth Bay.

[smartcode_project:default project_id=152579 project_image_fid=376253]

At 55 William, Fortis has again turned to MHN Design Union, the architecture practice behind several of its eastern suburbs projects, while London-based 1508 London has been appointed to handle the interiors and Wyer &amp; Co the landscaping.

The six-level building will comprise a combination of two and three-bedroom apartments, including a garden residence, full-floor apartments, a sub-penthouse and penthouse. Each residence will have secure basement parking and private outdoor space.

A rooftop terrace for all residents, along with select apartments, enjoys views across Double Bay Harbour and toward the Sydney skyline.

Ceiling heights will reach up to three metres&nbsp;in select residences, while the kitchens will feature natural stone and integrated Gaggenau appliances.

&nbsp;

&nbsp;

The boutique nature of the project reflects the type of stock Fortis has increasingly targeted across Sydney's eastern suburbs, where larger apartments and smaller buildings are being pitched primarily toward local owner-occupiers and downsizers.

Fortis Group General Manager Ed Eve said the developer continues to see demand from buyers wanting to remain in the eastern suburbs but move into newer, lower-maintenance housing.

“We're seeing continued demand from local owner-occupiers and downsizers looking for high-quality homes that allow them to remain in the eastern suburbs, close to the lifestyle and community they know,” Eve said.

55 William is also one of the early projects to respond directly to the NSW Government's Low and Mid-Rise Housing reforms. Fortis had previously secured approval for just two townhouses on the 599 sqm site before revising the scheme to eight apartments following the planning changes.

Situated one street back from Double Bay's water's edge, the project enjoys an enviable harbourside setting within walking distance of Double Bay Village and the ferry wharf.

[smartcode_project:default project_id=152579 project_image_fid=376252]

Fortis has increasingly made the eastern suburbs a major focus of its Sydney pipeline. Beyond Double Bay, it recently completed the 14-residence Piper in Point Piper and has projects underway or planned across Rose Bay, Woollahra and Darling Point.

The developer recently secured approval for Verano in Rose Bay, a six-level development comprising 21 two, three and four-bedroom apartments, also designed by MHNDU.

55 William&nbsp;is soon to be release to the market with VIP appointments commencing early September,&nbsp;with residences priced from $4.5 million.

[smartcode_project_cta:default project_id=152579]

Fortis continues eastern suburbs push with 55 William launch

UAE-based developer Arada has unveiled plans for a $2 billion twin-tower apartment development in Broadbeach, marking its first move into Queensland as it continues its rapid expansion across Australia.

Arada will develop 952 apartments across two towers on a prominent site opposite the Gold Coast Convention and Exhibition Centre, with the project targeted for completion ahead of the Brisbane 2032 Olympic and Paralympic Games.

The project represents Arada's largest commitment to the Australian market since arriving in the country in 2024 and significantly expands a local pipeline that has now grown to eight projects and more than 5,000 homes.

It will also be the first major Queensland project delivered by Roberts Co since the tier-one contractor was acquired by Arada Group in 2025.

Plus Studio has designed the Broadbeach development, which will comprise one, two and three-bedroom apartments across two towers connected by a landscaped podium.

A significant resident amenity offering will include lagoon and lap pools, a gym, sauna and steam room, alongside a mist room, infrared room and salt scrub facilities. Communal terraces, private dining areas, a library, residents' lounge and work-from-home spaces are also planned. Around 1,200 sqm of retail and hospitality space will occupy the ground floor.

The site puts Arada in one of the Gold Coast's most active apartment markets, directly opposite the convention centre and within walking distance of Pacific Fair, The Star Gold Coast and Broadbeach's dining and retail precinct.

It also has immediate access to the Gold Coast light rail network and sits just a few blocks from the beach.

Arada Group Chief Executive Ahmed Alkhoshaibi said Broadbeach represented an opportunity for the developer to expand beyond its initial NSW pipeline.

“Broadbeach is a world-class address that gives us the canvas to create a community of exceptional design and lifestyle quality that genuinely enriches the daily lives of the people who call it home,” Alkhoshaibi said.

“This is our first development outside New South Wales, and it reflects our growing ambition to grow in key urban markets around the country.”

Alkhoshaibi said bringing Roberts Co into the project would give Arada greater control over the development and construction process.

“Delivering this project through Roberts Co, our own tier-one construction business, means we can bring the quality, pace and accountability that our buyers expect.”

The move into Broadbeach comes as Arada accelerates its Australian expansion following its entry into the market two years ago. The developer has assembled a pipeline of eight projects comprising more than 5,000 homes, while the acquisition of Roberts Co last year gave the group its own Australian construction capability.

Globally, Arada has a development portfolio valued at $50 billion comprising more than 55,000 homes across the UAE, United Kingdom and Australia.

The Gold Coast is emerging as the next major market for the developer, with strong population growth and infrastructure spending ahead of the 2032 Games continuing to underpin significant apartment development across the coastal strip.

Arada plots $2 billion Broadbeach towers in major Queensland move

Sydney’s downsizer market is changing, with a growing cohort of buyers prioritising the right home over simply finding a smaller one.

Coronation Property Head of Sales Cam Porter says the traditional idea of downsizing does not necessarily reflect what many buyers are now looking for, particularly those moving from established family homes across Sydney.

Instead, he says they are increasingly becoming “right-sizers”, seeking lower-maintenance homes without sacrificing the space, amenity or quality they have become accustomed to.

“We are increasingly seeing buyers who are not motivated by the idea of simply moving into a smaller property,” Porter says.

“They are right-sizers. They want a home that is easier to manage and better connected, but they still expect generosity, quality and a floorplan that supports the way they live.”

It is a subtle but important distinction in a market where apartment developers are increasingly targeting established owner-occupiers.

[smartcode_project:default project_id=135149 project_image_fid=377495]

For many of these buyers, moving from a house to an apartment is not driven by a desire to dramatically reduce their living space. Instead, the appeal is in removing some of the maintenance associated with a larger home while retaining generous living areas, storage and enough flexibility to accommodate family and friends.

Coronation’s sales team is seeing buyers place particular importance on natural light, practical storage and additional rooms that can be used as guest bedrooms, home offices or secondary living spaces.

Kitchens and dining areas are also playing an increasingly important role, particularly for buyers who regularly entertain or have children and grandchildren visit.

[smartcode_project:default project_id=135149 project_image_fid=377494]

“These buyers still want their home to feel generous,” Porter says.

“They may want less maintenance, but they are not looking for less life.”

The challenge for the broader housing market is providing enough of the right stock to encourage that move.

While much of the discussion around Sydney’s housing shortage has centred on the number of homes being delivered, Porter says the diversity of those homes is equally important.

Older homeowners can remain in large family houses for longer when they cannot find an appropriate alternative in the neighbourhoods where they have built their lives.

“The decision is rarely as simple as wanting fewer bedrooms,” Porter says.

“People are weighing up their connection to a neighbourhood, the space they need for family, the quality of the home and whether it will continue to work for them over the long term.”

It also has implications beyond the downsizer market. Providing suitable apartments for smaller households can free up established houses for families who need the additional bedrooms and land, creating greater movement through the housing market.

<h2>Lillian targets the next stage of apartment buyer</h2>

It is a buyer Coronation is targeting at <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, its new collection of apartments, terraces and penthouses at Erskineville Village.

Designed by Silvester Fuller, Lillian has been shaped around larger living spaces, natural light and flexible floorplans, alongside landscaped areas, wellness amenity and communal spaces for residents.

The development will form part of Coronation’s broader Erskineville Village precinct, which will combine new homes with green space, retail, hospitality and new pedestrian connections.

[smartcode_project:default project_id=135149 project_image_fid=377688]

McPherson Park will sit at the centre of the precinct, creating a significant new green space alongside the project’s retail and hospitality offering.

For Porter, the opportunity is to give buyers another housing option without forcing them to leave the part of Sydney they already know.

“People should be able to change the type of home they live in without having to change their entire life,” he says.

“For many buyers, Lillian offers the opportunity to remain connected to the Inner West and the city, while gaining access to a more convenient, walkable and considered way of living.”

[smartcode_project:default project_id=135149 project_image_fid=377687]

Coronation will explore the changing <a href="https://lillianresidences.com.au/news/lillian-x-space-x-downsizers-event-27-august/">right-sizer market at an event on August 27</a>, bringing together experts across property, design and lifestyle.

Held in partnership with SPACE, Poliform and Downsizer.com.au, the event will include a property market outlook from economist Michael Blythe alongside discussion around the considerations facing buyers planning their next move.

Attendees will also be able to learn more about the residences and amenity planned at Lillian Erskineville.

[smartcode_project_cta:default project_id=135149]

From downsizing to right-sizing: What Sydney buyers want from their next home

Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.

<a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.

Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.

[smartcode_project:default project_id=134873 project_image_fid=376196]

Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.

Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.

At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.

[smartcode_project:default project_id=134873 project_image_fid=376194]

The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.

Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.

Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.

[smartcode_project:default project_id=134873 project_image_fid=376181]

Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.

Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.

Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.

[smartcode_project_cta:default project_id=134873]

The Maybelle brings 27-storey parkside tower to market near North Strathfield

First Home Buyers

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Much of the money in property is made on the "way in" to the deal - in other words, when you purchase.
Buying a property for a discount provides a buffer should you be required to sell in the future. Knowing how to negotiate carefully with the real estate agent or vendor so that you can secure yourself the best deal is important.
As a first time buyer you're likely inexperienced with property negotiation - so it makes sense to consider a buyer's advocate, or buyer's agent, for this step. If that's something you're keen on, you can <a href="/expert-insights/buying/select-your-buyers-agent-wisely-what-you-need-to-consider">read our guide here on choosing one</a>. If, however, you are not electing to use an expert for this stage then you need to arm yourself with as much information as possible.
Many experts will explain that it's largely about coming up with your "ending" figure, or the amount you are willing to pay, and then working from a "starting" figure to this point.
For instance, if you are buying a property that you want to spend $700,000 on, and the vendor is asking $720,000, it might just be worth offering $680,000 and staggering upwards. Starting low will also ensure that the expectations of the vendor, particularly in a soft market, are brought down to the level where you want them to be.
Here are seven steps to get you started:
<ol>
<li>
Know your market inside out If you don't know what the property is worth, you run the risk of overpaying from the get go. If you don't know whether the market is hot and demand is going crazy for the type of home you are looking at, you run the risk of irritating a vendor who will just go to the next buyer. Make sure you negotiate harder in softer markets where buyer interest is at a low, rather than playing hard ball in hot and fast moving areas where you'll be wanting to be just as quick with offers. Be realistic about the market. You may want to have a look at statistics such as vendor discounting and days on market to get an idea of what type of an area you are buying into. For suburb specific data, see our free data section. Remember, the real estate agent is not on your side. Their job is to assist the vendor. <a href="/news/real-estate-agents-presenting-inappropriate-comparables">Do not trust them to provide you the most accurate comparables</a> or data to assist. It's worth doing some research into<a href="/expert-insights/understanding-comparable-sales-an-introduction"> what comparables are actually comparable</a>. 
</li>
<li>
Know how much you can afford Don't be offering blind. Have finance pre-approval and a good idea about what you are able to borrow, as well as a clear understanding of your personal capacity to buy. Don't leave yourself in an uncomfortable spot while negotiating due to a lack of preparation. You can also use this to your advantage - by telling the real estate agent that finance will only allow you to borrow up to a certain amount, they are less likely to push you to prices you do not want to go to (remember that you do not have to tell them your true borrowing capacity). Here are <a href="/expert-insights/valuations-five-must-know-facts">five must know facts about valuations</a>. 
</li>
<li>
Don't put all your cards on the table If you're willing to go a little higher, but have a feeling the vendor is close to breaking point, then make sure you don't give any further suggestion to the real estate agent that you'd be willing to spend that extra $20,000 or so.  You may also want to push the "This is as much as I can possibly spend" line, as well as falling back to the finance suggestion above. A good example of this was from an auction attended by Property Observer where we see the buyers play pretty hard to not increase their offer by saying "this is our final amount". Note how skilfully the agent coaxes them into revealing their hand, and how he presents the vendors thoughts in a positive way. Befriending silence and not rushing to fill it can be an important skill that you'll want to make the most of as well - do not be coaxed into letting yourself reveal important details. 
</li>
<li>
Do not assume that price is everything to everyone You might be able to knock down the price by offering different terms and conditions. Desperate vendors might be willing to take a lower amount provided they can have a longer or shorter settlement or similar. Find out what is important to the vendor - and find out as much about them as possible. Sometimes Googling or doing an RP Data search on the property can be revealing. However, remember that just because the property has been on the market for a long time, it doesn't necessarily mean that the vendor is desperate - sometimes the exact opposite can apply. Get to know your vendor's "cards" as best possible, including whether the property's price has already been discounted and how much they actually want for it.  Observer <a href="https://www.propertyobserver.com.au/residential/sweeten-the-deal-by-negotiating-terms-of-purchase/2013121166912" target="_blank" style="line-height: 1.3em;">Jo Chivers previously looked at negotiating the terms of purchase</a> to secure yourself more access and a better deal. Don't forget that you can give multiple offers at once with different terms and conditions attached to each. For instance, you may provide their asking price but with strict terms and conditions favourable to you, while offering less for the settlement period that they want. 
</li>
<li>
Provide reasons for lower offers If you think that you can offer less than a property is expected to sell for and get a positive response, you'd be wrong. Sometimes justification is a powerful thing. Use comparables that you think fit your case better than those presented by the agent (which are almost guaranteed to be comparables in the favour of the vendor). Remember to use your handy building and pest inspection, anything that needs to be fixed can arguably come off of the price you pay. For instance, wHeregroup's Todd Hunter has told Property Observer that he uses details such as gardening that needs to be done, taps that need to be fixed and similar to present his case for a discount or to get the property in a better condition when he does purchase. 
</li>
<li>
Put time limits on your offers This can make you seem serious about the offer, and also means they are encouraged to make a decision as soon as possible. 48 hours would be a good starting point. Add a cheque to the offer - show them that they can easily have the property sold with the simple act of accepting. Time your offers carefully and use the response from the real estate agent as a guideline on how to act next. If the agent isn't chasing you for the next offer, then you may need to face the consideration that there are potentially other buyers willing to pay more. You might want to play this same approach and ensure you have other properties of interest to you. 
</li>
<li>
Have the team behind you to act fast If another offer falls through and they come to you with a time limit themselves, you'll want to have a solicitor and a team who can turnaround the paperwork as quickly as possible. Cultivate your investment network so you can act as quickly as possible. This will also enable you to put the first offer onto a lot of properties. As a first time buyer, you'll want to be looking towards referrals from trusted friends and family to start building your team. For instance, here's <a href="/expert-insights/finance/how-to-pick-the-best-mortgage-broker">how to pick a good mortgage broker</a>, and here are some<a href="/expert-insights/investing/six-things-to-look-for-when-choosing-a-property-manager"> tips around choosing a property manager</a>. Remember that you need to assess the situation carefully - while some buyers like to throw a negative or disinterested light onto the property they want, it can cause real estate agents to assume you are not serious about your intention to buy. They may take the easy route with another buyer. Other advice that is up for debate is contacting the seller yourself, or asking to meet the seller. For confident, competent property buyers this may be a powerful step, however those who are uncertain may be leading themselves astray.
</li>
</ol>
Neil Jenman also shared his <a href="https://www.propertyobserver.com.au/trends/the-10-ways-to-negotiate-a-better-deal-in-property-neil-jenman/2012122058603" target="_blank">top 10 ways to negotiate a better deal</a>.  
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jduke-EHk3XBmHkn

Seven negotiating tips and tricks for first timers

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When it comes to buying your first home, there are many daunting tasks to tackle. One of those tasks is securing your first home loan.
Before you’ve found your dream home, start looking for your dream mortgage. Without finance, there's no purchase - so make sure you get it right.
Choosing your first home loan
Fixed or variable? Packaged or unpackaged? A big lender or a small one?
To pick your home loan, there are three main things to think about:
<ol>
<li>Your priorities</li>
<li>Where rates will move</li>
<li>The products</li>
</ol>
To navigate the myriad mortgage products on the market, you need to have your priorities clear. It's rare that one deal will be clearly better than all the others - instead, it's all about what's best for you.
You may be after low ongoing fees. Perhaps security against future rate hikes may appeal to you, or maybe you're more interested in capitalising on the next rate cut.
Firstly, remember that a mortgage is a long term commitment. It's incredibly unlikely that your life circumstances will stay constant over your entire mortgage term. Think realistically about how your life might change over the next five or 10 years - you might have ongoing health concerns that will make rate repayments harder, or go from a double income household to a single one. A new addition to the family will seriously change your finances, as will a career change.
Figuring out your priorities doesn't just mean figuring out your priorities for today. It means figuring out what your priorities will be a decade down the track.
With a variable loan, your interest rate will change each month, according to how your bank responds to changes in the Reserve Bank's overnight cash rate. With a fixed loan, you lock in a single rate for a set number of years - anywhere between two and 10. Your choice will be in large part informed by your personality and your priorities - some are more comfortable with variance than others.
As <a href="/expert-insights/finance/weighing-up-fixed-vs-variable-interest-rates-mark-bouris">Mark Bouris writes</a>, both fixed and variable options come with their own risks. Pick a variable loan, and you'll be paying more when the Reserve Bank increases the cash rate. Go with fixed, and you'll miss out on any rate cuts.
While nobody knows for sure which way rates will move, we're currently at a record low cash rate of 2.5%. For some, this <a href="/expert-insights/finance/analysis-is-it-worth-fixing-your-home-loan">means that fixing is a better option</a>, financially speaking, as many expect the only way for rates to move is up. Fixed products will also make it easier for you to budget, as you'll know exactly how much money you need to put towards your mortgage each month.
However, <a href="/expert-insights/finance/variable-rates-remain-the-loan-product-of-choice">75.34% of all home loans written up in June</a> were variable, perhaps due to the generally lower rates offered on variable loans than fixed ones.
And of course, it's not just the rate that matters, but the product and the bank's conditions. Often, fixed rate loans do not allow you to make extra repayments on the months that you have a bit of spare cash, or will charge you a fee to do so. You may also face a "break fee" if you sell your house before the end of the term and repay the entire loan, or if you change your loan.
The Consumer Action Law Centre recommends that borrowers <a href="/expert-insights/buying/consider-opt-out-costs-when-getting-a-loan-consumer-action-law-centre">consider their opt out fees upfront</a>, rather than waiting until your circumstances change.
There's also the option to split your loan type, with a partially fixed loan. For example, if you know your budget is generally likely to be tight but that you occasionally get substantial injections of cash, from bonuses or short term contract work, you may want to choose a 50% variable and 50% fixed loan which limits your exposure to future rate hikes but still allows you to make extra repayments occasionally.
Of course, there's more to picking a home loan than just picking the type. There are also lenders, packages, fees and discounts to consider. Online comparison websites like <a href="https://finder.com.au" target="_blank">finder.com.au</a> can help with this task.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
But if you're struggling to sort out what is best for you, it might be time to bring in some help.
Mortgage brokers
A mortgage broker is someone who specialises in home loans and will negotiate with lenders on your behalf to arrange your loan. A good mortgage broker will help you select the best loan and secure it with your lender. But be careful - a mortgage broker often receives broker's fees or commissions by credit providers, which can influence what loan they recommend to you. So even if you do use a broker, you should still shop around for the right loan - and the right broker.
Questions you should always ask your broker:
(For more on this topic, <a href="/expert-insights/finance/five-questions-you-must-ask-your-mortgage-broker">click here</a>)
<ol>
<li>How do you get paid? Unfortunately, a broker will not always act in your best interest. Determining where they get their money from may help you identify any conflicts of interest. 
</li>
<li>Who is on your lending panel? If your broker only has access to loan information from a few banks or lenders, you're not getting the full picture and could miss out on a good deal. If you know of lenders they don't, do some independent research. 
</li>
<li>What is your average client like? Make sure you get a broker that specialises or at least has a good deal of experience with first home buyers - long term investors will have very different needs. 
</li>
<li>What are your license details? Your broker should have an Australian Credit License, with their number displayed on official paperwork. Don't be afraid to google them and ask about professional indemnity insurance in case anything goes wrong. 
</li>
<li>What are some difficult deals you've pulled off? Your mortgage broker should be open and honest about their previous dealings - remember, they're there to help you, so make sure you're going with someone with experience and confidence.</li>
</ol>
Knowing what you can afford
A large part of picking the right home loan is about knowing what you can afford. You might have saved up enough to make a 10% deposit on a $500,000 home, but that doesn't mean you can afford to make the monthly repayments on a $450,000 loan. There are a number of calculators available to you, <a href="/expert-insights/buying/six-handy-apps-for-first-home-buyers">including apps</a> like tapMortgage and Approve Me.
tapMortgage can help you calculate your stamp duty, transfer fees, first home concessions and mortgage repayments. You can sort out the potential savings you would make with different repayment schemes or the total interest you'll pay on your loan. Approve Me is another app which can help you decide whether you can afford your prospective loan repayments. It even has a process for obtaining home loan pre-approval.
Knowing what you can afford is the most important part of choosing your first home loan. While many decide on how much they have for a deposit, the area they'd like to live in and even the kind of home they want before thinking about their mortgage, many experts recommend figuring out how much you can afford to pay each month before considering any of the more glamorous aspects of buying your first home.
Once you think you know what kind of loan suits you best, and you've gotten an idea of the kind of property you're after, it may be worth getting a <a href="/expert-insights/finance/a-quick-guide-to-home-loan-pre-approval">mortgage pre-approval</a>. While it's not a watertight guarantee you'll be approved for the loan of your choice, it's your best bet.
Running into trouble
No matter how well you prepare, there's always the risk of something going wrong. Unexpected costs and events can severely hamper your ability to repay your loan. If you think you're at <a href="/news/vic/victoria-s-mortgage-delinquency-on-the-rise-how-you-can-stay-above-water">risk of default</a>, here's what you can do: 
<ol>
<li>Communicate with your lender. Don't think your lender just won't notice if you stop making your loan repayments. Be clear with them about what's happening - they may be able to stop the process that will end in you defaulting on your loan and getting evicted from your home. 
</li>
<li>Enquire about hardship variations A hardship variation is an amendment to the terms of your loan contract which may temporarily make your loan more affordable by decreasing your monthly repayments but increasing your overall loan term. For new loans, you should be able to apply for a hardship variation no matter what your loan size is. If they don't approve your hardship variation application, your lender must provide a reason. 
</li>
<li>Check your insurance Depending on the reason for your default - loss of income, a health issue or a sudden death in the family, you may be able to claim cover that will assist you in paying off your loan. 
</li>
<li>Consolidate and refinance Be wary of refinancing your loan to reduce your payments - like with a hardship variation, this is likely to only be a short term fix. Beware of hidden costs and fees. 
</li>
<li>Selling or renting If you absolutely can't continue to repay your home, you may have to consider selling your property to pay off your loan. This is a long term fix, with its own major costs. You may also face extra fees for breaking your loan contract early. If you have alternative accommodation available - a parent's house, for example, you may consider moving back there temporarily and renting out your house. Again, this comes with its own costs, like the expense associated with hiring a property manager. 
</li>
<li>Seek help If you run into financial trouble, you're not on your own. There are free and low cost services available to help those under financial stress, like financial counsellors and legal advisors.</li>
</ol>
Of course, the best way to avoid running into trouble with your first loan is to plan ahead carefully and choose wisely in the first place. Be honest with yourself about your payment abilities, and consider your mortgage as carefully as you're considering your first home purchase.
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jrichardson-uRX5hFdKfN

Getting your first loan? Here's what you need to know

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It’s an increasingly common debate – do you look to buy an investment property first, or a home?
Here are some easy pointers to steer you quickly through the maze of indecision.
Tradition says that when you have enough saved a deposit, you’re serviceable, and you’re prepared to take on debt, then you take the leap into buying your own home. However, this doesn’t necessarily need to be the case.
A debate is emerging around whether first time buyers should choose a home or an investment property first. It’s a fair question to ask – particularly when we’re seeing many decide to opt for this arrangement.
However, it will come back to one simple question: Why were you buying in the first place?
If you were buying to escape your parent’s house, or the irritating situation of renting and being unable to paint your walls or have a pet, then it’s unlikely buying an investment property will suit your goals. If, however, you are looking to buy for primarily financial reasons – rather than for lifestyle reasons – then asking yourself whether an investment property is a good option is a fair question.
While all properties should be treated with careful planning, and considered as a financial decision, it's worth noting that ignoring the "owner occupier" aspect of buying opens up many locations and opportunities across the country to consider where to place your money.
Mortgage Choice previously discussed the benefits of dabbling in the market through an investment first.
“[After buying] They then rent the property out and use the life lessons, possible tax benefits and any financial gains to put them in a better position to buy their first home," a spokesperson explained. “This occurs especially with younger people who want to get into the property market but may have been priced out of buying a home in the area they want to live in. A clever investment property purchase and a little patience could see these home buyers-to-be residing in their desired suburb sooner than expected."
<div id="stcpDiv" style="position: absolute; top: -1999px; left: -1988px;">“While affordability has improved of late, it is not uncommon for first time property buyers to dip their toe into the market by purchasing an investment property first. They then rent the property out and use the life lessons, possible tax benefits and any financial gains to put them in a better position to buy their first home.   - See more at: https://www.mortgagechoice.com.au/fairien.azeem/blog/fallen-for-your-first-home-but-unsure-if-you-can-commit-buying-your-first-investment-property-before-your-first-home-may-help-15620#sthash.74PwQJBa.dpuf</div>
Let’s unpack the debate a little more.
THE PROS AND CONS
Source: <a href="/expert-insights/investing/the-pros-and-cons-of-buying-your-first-property-as-an-investment-and-continuing-to-rent">Cameron McEvoy</a> - property investor, Property Spectator 
Owning your own home, investing later 
Pro: The security of not being asked to leave after six months of tenancy.
Pro: You can personalise the space you live in and have greater freedom to decorate.
Con: You cannot claim any of the tax benefits of living in your own home unless...
Pro: You rent out bedrooms to a boarder, entitling you to apportioned tax deductible expenses (effectively making your own home partially an investment property).
Pro: The advantage of being able to live in the area/suburb/street where you want to be. Renters are often at the mercy of accepting less than their ideal locale.
Con: You are at the mercy of paying the additional costs involved in home ownership (strata for units, council/water rates, house maintenance, repairs, etc) without any of the tax deduction allowances, making owner-occupying very expensive when coupled with mortgage repayments.
Investing while renting 
Pro: Cash flow month to month - it's easily considerably cheaper to split bills and rent rate.
Pro: Probably the biggest one – you free up cash flow to save harder for a deposit on an investment property.
Pro: Many options exist within this: couples moving in together to split costs; friends can flat or house share to split costs; or simply living with parents and paying a little board can keep costs down.
Con: Insecurity of long-term tenancy. Owners can sell/move back in/even demolish the property you're renting.
Con: Costs aren't fixed; leases tend to hike up in rent at the end of one lease and the start of another one.
Con: Depending on whom you're living with, the challenge of personality clashes or inconvenient lifestyle issues with accommodation sharers.
Con: Lack of freedom in personalising your home.
LIFESTYLE AND CIRCUMSTANCE
This part is largely personal.
Renting doesn’t suit everyone – particularly if you do not want to be forced to move at the end of your lease agreement. There are thousands of gripes that tenants have with their landlords and property managers. Many of us would love to be able to paint our walls, buy a pet or just not put up with inspections.
If you’ve come to the end of your tether, and that is why the property market is looking attractive, it seems that buying a home is for you.
However, if you are not sure about what the next seven to 10 years holds for you (how many of us really are), then renting might suit perfectly. Herein lies a lifestyle debate that sees many retain their tenant status. You might not know what you want to live in down the track – perhaps your lifestyle will change, you may have children or you’ll need to move for work. Remaining flexible, by renting, may be the best solution for you – particularly bearing in mind hefty in/out costs when it comes to transacting property.
Lifestyle is also heavily affected by affordability.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
AFFORDABILITY LEVEL AND LOCATION
Let’s be honest – affordability is largely about location. If you can’t afford to buy in the location you’re renting in and that you love, then you will be required to look elsewhere. Similarly, growth might be forthcoming elsewhere than in your current city – for instance, Sydney has recently gone through a cycle and it’s debatable as to the levels of growth still expected over the year (although recent estimates have suggested 10% growth to come).
Do you actually want to live where you can afford to buy? If you love your current location (for instance, some upcoming first time buyers we know of cannot contemplate not living in Melbourne’s <a href="/news">Prahran</a> or in Sydney’s <a href="/news">Newtown</a> or <a href="/news">Glebe</a>) and can’t afford to buy there, but still want to be getting onto the property ladder… well, it might make sense to retain your current lifestyle and hold an investment property elsewhere.
If your budget is $350,000, not a huge amount given the median prices of our capital cities, and you live and work in, say, Sydney CBD – then it might be worth looking to see what the regional areas can offer up at your budget.
It may even be worth looking interstate.
Choosing an investment property and location means that you can get onto the property ladder, while remaining in the same area, and potentially choose something that is neutrally geared, or close to it. This essentially means you will be paying out minimally each month.
Compareyour rent to the mortgage repayments you would have if you were buying a home, as well as the investment property required pay-out. It’s worth considering which is the most viable for you.
In some areas it’s cheaper to buy than rent, based on repayments. Don’t forget that there are other costs you need to be paying as well (for instance, council rates or strata) that often make this not strictly true.
Even so, not every area is lucky enough to fall onto the list.
Similarly, investing in property allows some significant tax breaks – particularly if you are on a higher income. Things like depreciation can be claimed, as can your property-related expenses. While it<a href="/expert-insights/finance/negative-gearing-is-not-the-way-forward-kevin-lee"> is never worth investing in property for a tax break</a>, it does affect your overall bottom line and should be factored into the equation. You also want to consider the future effect of capital gains tax.
If renting a room as a single in a lower-cost area, you can significantly keep your own costs down. Having a home is going to be a pricey enterprise.
FIRST HOME BUYER GRANTS
The government doesn’t give out a huge number of handouts to those looking to buy property; however first home buyers are often in luck.
Some states and territories require you to live in the property for a period of time. Others say that buying an investment doesn’t affect your ability to get the grant in future, provided you don’t live in it.
Be clear on the rules to ensure you’re not missing your personal benefits by buying an investment property. If you are, then weigh up the lost opportunity.
MATURITY
Let’s be frank. You won’t hear this point much, but if you become an investment property owner – and therefore a landlord – you’re going to need to be able to handle a group of professionals. You will need the maturity and sensitivity to deal with tenants. These may be model tenants but, as we’re all human, there is always the possibility of them causing damage. If you can’t handle this – and it’s regardless of age – then you’re unlikely to be suited to a lifetime of landlording.
It’s also about being in the right frame of mind to invest over buying a home. Investing is about leaving emotion out of the picture and potentially buying something ugly, or in an area you do not personally deem charming, to secure future growth.
You are likely also going to need to hold onto this property for a period of time. How will it affect your future plans?
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A home or an investment property: Which do you choose?

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A mortgage broker network claims that allowing first home buyers to dip into their superannuation to make a deposit on their nome could benefit the housing finance and superannuation markets.
A number of industry bodies have supported Independent Senator Nick Xenophon's proposal to change restrictions surrounding superannuation access for first home buyers, <a href="/expert-insights/buying/time-to-allow-first-home-buyers-access-to-superannuation-hia">including the Housing Institute of Australia</a> (HIA).
According to 1300HomeLoan managing director John Kolenda, Xenophon's propsal could have a positive impact on the housing market but would require restrictions.
“Anything that can help first home buyers get into the market to buy their first home is a good thing,” said Kolenda.
“First home buyers have had a number of factors stacked against them in recent years and they are the least active sector of the home finance market despite record low interest rates.
“Many have difficulty saving for the necessary deposit and they haven’t been helped by rising real estate prices and first home owner grants restricted to new houses.
“The plan from Senator Xenophon deserves consideration and they can set parameters around it such as a maximum withdrawal from a super fund of $25,000.
“If first time buyers are allowed to access their super for a home loan deposit you might actually see people contributing more money into their fund, which will be beneficial to the superannuation sector.
Kolenda said first home buyers should also consider other options, like assistance from their parents.
“First time buyers who have minimal savings should realise they can get help from their parents or other family members to help secure a deposit,” he said.
‘Under the family equity guarantor’s support policy, parents or another immediate family member can help a first home buyer purchase a property.”
Xenophon's proposal is similar to schemes already in place in Canada, New Zealand and Singapore.
While 1300HomeLoans, the HIA and the Real Estate Institute of Australia have shown support for proposed changes to super withdrawal regulations, other <a href="/news/exclusive-should-australia-follow-canadas-home-buyer-plan-the-experts-have-their-say">industry experts have highlighted drawbacks to the scheme</a>, such as increasing house prices and depressed superannuation earnings.
For more on the debate:
<a href="/expert-insights/buying/xenophon-first-home-buyer-super-scheme-supported-by-mortgage-choice">Xenophon first home buyer super scheme supported by Mortgage Choice</a>
<a href="/news/reia-urges-government-to-allow-fhbs-to-dip-into-superannuation-for-a-home">REIA urges government to allow FHBs to dip into superannuation for a home</a>
<a href="/expert-insights/investing/its-time-to-re-think-first-home-buyer-grants">It's time to rethink first home buyer grants</a>
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Mortgage broker network joins the call for super access for first home buyers

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Mortgage Choice has welcomed Senator Nick Xenophon’s plan to introduce legislative changes to allow first home buyers to access their superannuation savings for a house deposit. 
Mortgage Choice chief executive officer Michael Russell said he believed the proposal would help make a difference to thousands of Australians each year.
The changes to the Superannuation Act 1976 will be debated during the spring session of parliament.
The proposed changes are similar to a scheme, called the Home Buyers’ Plan operating in Canada.
Under the Canadian scheme, home buyers can access up to $25,000 for a first home.
Allowing these buyers to jump onto the property ladder sooner rather than later, the amount borrowed is then required to be paid back into the super fund within 15 years.
Michael Russell advocated the Xenophon scheme as likely to reduce the need for lenders mortgage insurance.
“While lenders mortgage insurance has a crucial role to play in assisting first home buyers into the property market, if the premium can be reduced by lowering the loan to valuation ratio, then this would seem to be in the best interests of buyers," Michael Russell said.
“First home buyers should be allowed to invest part of their super in their own bricks and mortar.”
Mr Russell said the money ought be reimbursed into the homeowners' super account either at the sale of the property or within 15 years – whichever comes first -  and include gains based on an appropriate index.
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jchancellor-FAypfDUnLy

Xenophon first home buyer super scheme supported by Mortgage Choice

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First home buyers are leaving the Australian residential market and the government must work to fix affordability, according to the Real Estate Institute of Australia.
The REIA’s CEO Amanda Lynch, at the Senate Economics References Committee Inquiry into Affordable Housing said that home ownership in Australia is falling and first home buyers are at record lows.
“Governments at all levels must address structural factors that reduce the responsiveness of supply to demand,” said Lynch.
“Projections from REIA’s recent roundtable at Parliament House showed the cumulative housing shortage is likely to increase from 100,000 dwellings in 2006 to 375,000 in 2015.
“Studies have found that the stability associated with home ownership ultimately contributes to positive social outcomes, such as improved education levels for children, better mental and physical health, and greater social connectedness and participation in local community and voluntary organisations,” she said.
Their recommendations include:
<ol>
<li>Assistance for first home buyers for both new and established property. 
</li>
<li>That international schemes, for instance releasing superannuation, be assessed and replicated. 
</li>
<li>Negative gearing be retained for investment to make the rental sector viable. 
</li>
<li>Conveyance stamp duties be abolished and replaced by a different source of revenue. 
</li>
<li>Time frames and release of land to be increased.</li>
</ol>
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Government needs to stem “exodus of first home buyers”: REIA

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GUEST OBSERVATION
<ol>
<li>
Buying new or off the plan properties Many investors make the mistake of chasing depreciation benefits offered to new properties or stamp duty savings that are available in certain states when buying off the plan. Many forget about the cardinal rule in real estate investing: buying well and buying property at or below what it’s worth. Most new properties are priced according to developer’s profit margin percentages and attract GST, which is paid by the developer and generally loaded into the purchase price. Often properties are overpriced and have limited capital growth as they are competing with newer apartments that are built every year. 
</li>
<li>
Buying properties that banks don’t like If the banks don’t like lending against certain properties, it is usually for a very good reason. Banks won’t want to risk their money and exposure as they might not lend against certain properties such as country/regional/mining town properties or only lend on lower <a href="/expert-insights/finance/what-is-an-lvr-investment-terms-explained">loan to value ratios</a> (LVRs of only 70%) for commercial properties which they see as harder to tenant or resell. Some properties that banks don’t like include high rise apartments in the CBD and surrounds, stratum title or company share properties, small apartments including studios and student accommodation, defence housing and serviced apartments. 
</li>
<li>
Buying property overseas or interstate Many investors make the mistake of buying properties overseas or interstate without really knowing those markets and doing their due diligence properly. They are often attracted to the cheaper entry level prices that these offer but they make the mistake of comparing prices in areas they know versus areas they don’t know. Many Australian investors have purchased property in America, having been attracted to low price tags of $100,000 promised rental returns of 10% per annum. One should ask the question - if the properties were so cheap, why aren’t the locals in America buying them all? Our advice is to do your due diligence and study comparable sales in one or a few areas so that you can purchase the right investment property at the right price. 
</li>
<li>
Buying non-investment grade quality properties A good investment grade quality property has a number of common fundamentals that set it apart from poor investment properties that miss a number of common fundamentals including being in a quiet but convenient location, car parking, street appeal, aspect or view and sunny orientation. Many investors make the mistake of buying a property that is cheap and are lured by a lower price but the problem is that this property will always be cheap and be limited in terms of capital growth prospects and future resale prospects because it doesn’t have key attributes such as an outdoor area or the appropriate floor plan or it is on a major highway. Investors should pay a bit more and get the “right” investment property, not the cheapest one. 
</li>
<li>
Procrastinating and waiting for the “Perfect” investment Many investors procrastinate as they talk themselves out of buying an investment property because they are scared of increasing their debt position and getting into further debt, even though buying the “right” investment property is getting into “good debt” not bad debt items that depreciate in value such as new cars, boats, and plasma televisions. There are not many perfect investment properties that can be rated 10/10 as most properties have some pros and some cons. Investors should definitely do their due diligence before purchasing but should not over analyse or become emotionally involved when buying an investment property.
</li>
</ol>
FRANK VALENTIC is managing director of award-winning buyers' agency <a href="https://www.advantageproperty.com.au/" target="_blank" rel="nofollow">Advantage Property Consulting.</a>
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fvalentic-kJt4iZ5jDx

The five mistakes every first time property investor should avoid

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The Housing Industry Association has said that it’s time to allow young buyers access to their superannuation savings to assist with a deposit in getting into a new home, saying that it would also assist them in retirement.
HIA executive director, industry policy and media, Graham Wolfe, said that superannuation contributions are a form of forced savings to assist in retirement.
“Owning a home delivers the same result, but with the added benefits arising from home ownership throughout their working lives,” said Wolfe.
“Many young people are busy working, renting, repaying their education costs and in many instances, raising a family,” he said.
“Saving for a deposit at the same time is a significant challenge.”
He noted that enabling access to a portion of their superannuation will allow many first home buyers to accumulate a deposit, redirect their rental payments to their own financial security and allow home ownership sooner.
“Accessing superannuation for a home deposit would provide temporary access to their personal savings. Provided it was repaid to their superannuation accounts over a period of time, similar to university HECS repayments, their retirement savings would be assured,” he said.
“HIA urges all stakeholders to support measures aimed at improving access to home ownership for first home buyers, including assistance in breaching the deposit gap.”
Allowing first home buyers access to their superannuation is something that has been previously encouraged by the Real Estate Institute of Australia for some years, including <a href="/news/reia-urges-government-to-allow-fhbs-to-dip-into-superannuation-for-a-home">in their submission to the last government budget</a>.
It would follow <a href="/news/act/australia-could-learn-from-new-zealands-first-home-buyers-super-scheme-reia">New Zealand</a> and <a href="/expert-insights/investing/reia-lobbies-for-canadian-style-first-home-buyer-scheme">Canada</a>, who currently allow this.
However, last time Property Observer<a href="/news/exclusive-should-australia-follow-canadas-home-buyer-plan-the-experts-have-their-say"> surveyed our panel of experts about whether following Canada’s first home buyer schemes would work</a> for Australian first time buyers, most said that there are other fundamental issues that should be addressed before allowing them to tap into their superannuation.
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Time to allow first home buyers access to superannuation: HIA

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Hi Margaret,
I have already met eligibility requirements to buy a property with my First Home Saver Account (FHSA) money. 
Do you know whether i still have to meet the 'live in the property for at least six months over the next 12 months' requirements given the 12 months will extend beyond the date that this rule is abolished?
Regards,
FHB
Margaret's answer on the next page. Please click below.
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Hi FHB,
The First Home Saver Account (FHSA) was an initiative by the federal government to boost the savings of first home buyers by providing incentives via an additional deposit and tax advantages to this account as long as you placed your own savings in it. 
The rules were simply that you use it only on your first home, do not draw anything out of it for four years, and pay at least $1000 a year into the account over at least four years. In return the government made a 17% contribution on the first $6,000 and only taxed any earnings at 15%. The funds from your first home saver account could only be used to buy a property you intended to live in. The occupancy rule stated that you must live in the home for at least six months and it must be your main residence.
The six-month period must start within:
<ul>
<li>12 months of you becoming the home owner (from settlement date) or;</li>
<li>12 months from the day construction was completed if you are building a home</li>
</ul>
If you failed to use the funds on your first home, it had to be rolled over into superannuation.
However these accounts did not take off as expected and so the following changes will occur:
<ul>
<li>Accounts opened after 7:30pm Tuesday 13 May 2014 will not be entitled to the government contribution</li>
<li>Existing account holders will not be eligible for a government contribution on personal deposits after the 2013-2014 financial year</li>
<li>Tax and social security concessions will cease 1 July 2015</li>
<li>Restrictions on withdrawals will be removed on 1 July 2015</li>
<li>First home saver accounts will be abolished on 1 July 2015</li>
</ul>
Having said all of that, as of today the accounts are current and this means that the requirements are current.  Since ‘living in the property for six months starting sometime within the first 12 months’ could potentially mean that your six months might feasibly start after the abolition of this rule, one would expect that it would no longer apply at that date. 
However, as you would be accessing the funds during the time that the scheme is still current, you will most likely be required to fulfill your obligations and start living in the property, staying there for the full six months, regardless of when this falls.  The government has provided the benefit and so you should follow the rules relating to that benefit.
If I were you I’d make a call to the Office of State Revenue in your state and clarify their position.  If they do, be sure to get it in writing so that you can prove that this is what you were told, if questioned at a later date.
Regards,
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Do the First Home Saver Account eligibility requirements still apply?

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More than half of the baby boomers surveyed by realestateVIEW.com.au believe today's generation "have it tougher" than they did when buying their first home.
In a recent survey, 56% of the 2,554 respondents aged between 50-59 thought today's first home buyers are having a tougher time than they did when purchasing their first homes in the late 80s and early 90s, despite interest rates reaching 17%.
According to Petra Spektros, general manager of realestateVIEW.com.au, baby boomers weren't facing the same affordability constraints experienced by today's first home buyers.
"I think certainly the current generation have it tougher," says Spektros.
"Interest rates were the biggest constraint for baby boomers," she explains. But Spektros says that non-housing related costs are contributing to the affordability issues faced by today's first home buyers.
"You just have to look at HECS, for example, and private health cover," Spektros says. "There's lots to pay for that just wasn't needed when the baby boomers were purchasing property."
She also noted population growth and increased competition as house price drivers.
Only 18% of those surveyed by realestateVIEW.com.au thought today's generation are finding it easier to buy their first home than they did.
The survey also revealed that despite the "cashed up" baby boomer stereotype, many are experiencing affordability issues of their own. The majority of baby boomers surveyed were seeking a property priced under $600,000, with 36.6% after a property that will cost them less than $400,000. Around a quarter of the respondents had been looking for a home for more than three years, a results realestateVIEW.com.au says reflects "rapid price growth and market competition in Australia's cities".
However, 51% of those surveyed said they were "comfortable" with current house prices, with 33.5% saying they are "uncomfortable with house prices" and 15.5% saying "I feel I am being priced out/outbid by other buyers".
Baby boomers in New South Wales appear to have a less rosy look than Victorians, with 39.7% of New South Wales respondents reporting that they are comfortable with current prices, while 51.7% Victorian respondents shared the same sentiment.
Most of the survey's respondents are looking to downsize, but 34.4% of the baby boomers intend to stay in the family home when they retire. Spektros says many are probably still funding their kids who live in the family home.
"A significant proportion are struggling and have affordability concerns. I think house prices today ahave a particular bearing on that," says Spektros.
"Some may not be working as hard or full time, as they used to. But they still have the family home bills to pay," she says. But there are other lifestyle factors at play as well.
"And of course this generation, because they have worked so hard, are waiting for their retirement to have their big holiday and dinners."
It appears retirement villages and communities are becoming less popular, with only 6.1% of respondents reporting a retirement village as their preferred option in retirement.
{module Do you think the younger generations have it tougher?}
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