<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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If you're looking at buying a first home, or perhaps a first investment property, there are many hoops to jump through.
For those of you who have just started considering and becoming serious about purchasing, here are 11 questions that you should be looking at answering for yourself - including links to more helpful information.
If there's a question you'd like assistance with, or answered, then leave a comment and Property Observer will take it to the experts.
<ol>
<li>
What time frame am I looking at? If you’re looking to buy within the next month, then you need to ensure that you have everything in order, including your deposit and funds for costs as well as any auction practice or professionals you need to have engaged. If you have longer, then you are able to save more – and put a budget plan into place as necessary – and spend more time to research. Your personal time frame will shape how you approach the other questions in this list. 
</li>
<li>
Who should I speak to for advice? There are many professionals out there, and you’d be wise to engage with an accountant, broker and potentially even a buyer’s agent early on in the piece – not to mention start to scope out real estate agents (though remember, they work for the vendor not for you). You will also want to eventually grow your team to include either a solicitor or a lawyer, perhaps a building and pest inspector and so on. You can see a number of articles on how to choose these experts here. 
</li>
<li>
What deposit do I have? If you have a small deposit, it’s time to <a href="/expert-insights/finance/what-is-an-lvr-investment-terms-explained">understand LVRs and how LMI might play a factor in this</a>. This may cause you to re-think how much money you’re putting in, and perhaps have you saving for longer. Remember, also, that you will also need funds to cover <a href="/news/vic/how-to-work-out-how-much-buying-a-home-costs">all those extra hidden costs</a>. 
</li>
<li>
How much can I borrow? An online calculator can quickly help with rough estimates around what you can borrow. A broker can further assist you with this. Knowing this figure, the bank’s limit, can quickly help you understand what is out of your reach. You can also ask your broker what you can do to push this limit up if it comes in too low (for instance, increasing earnings and minimising expenditure). Here are some <a href="/expert-insights/finance/six-tips-to-help-improve-your-serviceability">other tips on improving serviceability</a>. 
</li>
<li>
How much can I afford? Just because the banks are willing to give it to you, <a href="/expert-insights/finance/just-how-much-should-you-prudently-borrow-even-if-the-banks-ignore-the-rba-cheap-money-warning">it doesn’t necessarily mean that you can service the debt and maintain your lifestyle</a>. Now is time to practice putting aside the repayment amounts, and factoring in aspects such as interest rate increases, to see if you can really afford it. Speak to your mortgage broker about <a href="/expert-insights/investing/speak-to-your-mortgage-broker-and-banker-to-know-what-you-can-afford-with-a-nice-buffer">the importance of buffers and not overstretching yourself financially</a>. 
</li>
<li>
What type of property am I looking at? Are you looking for a run down property to renovate, or a new build? An apartment or a house? How many bedrooms? Get a clear picture in your mind about the type of property you’re after, and what you’ll need for your own situation. For some with pets, a garden is non-negotiable. For those with children on the way, consider how long you may need to be in this property for and the space available.   
</li>
<li>
What suburbs am I interested in? Now look to the areas that you are keen to live in. Look at what is selling and the prices, and see whether what you can borrow matches up with the area and the type of property you need. If not, see the next question. You can check the median prices and movements with our free suburb data here. 
</li>
<li>
Which factors am I prepared to negotiate on? It’s<a href="/expert-insights/investing/sacrifice-and-compromise-the-reality-of-first-home-ownership-terry-ryder"> time to do some compromising with yourself or some sacrificing</a>. Could you go a couple of suburbs further away where it becomes cheaper? How about a smaller property? If you can’t afford it, sadly you’re going to need to compromise. Perhaps the compromise is waiting for longer until you can afford it. This is a growing reality for first home buyers – just remember, it’s your first home, not your last. 
</li>
<li>
Do I need pre-approval? If you’re looking to head to an auction soon, or would just like some peace of mind, <a href="/expert-insights/finance/why-you-should-secure-finance-pre-approval-before-looking-for-property">have a pre-approval at the ready</a>. Be wary of the limitations around these documents as explained here in this <a href="/expert-insights/finance/a-quick-guide-to-home-loan-pre-approval">quick guide to pre-approvals</a>. 
</li>
<li>
Have I thought about the risks? Taking on any amount of debt comes at a risk to you, and with a substantial amount of debt comes a substantial amount of risk. While you may have heard the term “safe as houses”, buying a property leaves you open to the mercy of the market. You need to be prepared for any eventuality that may affect your financial situation. This includes, but is of course not limited to, losing your job, becoming sick, perhaps having a child, damage to the property, divorce, death and so on. Prepare insurances adequately, and ensure you have a clear understanding of what you’re purchasing. Here are some <a href="/guides" target="_blank" style="line-height: 1.3em;">examples of off-the-plan risks</a>, and here are <a href="/expert-insights/investing/10-risks-first-time-property-investors-need-to-overcome">10 risks that first time investors need to overcome</a>. 
</li>
<li>
What grants and assistance are available to me? Lastly, look into what is currently available to you in terms of first home buyer grants and stamp duty exemptions. These are easily accessed by your state or territory’s office of state revenue or treasury, however you can also <a href="/expert-insights/buying/the-national-guide-to-first-home-buyer-grants">see our cheat sheet guide here</a>. They regularly change, so ensure you seek careful advice.
</li>
</ol>
YOU MAY ALSO WANT TO READ
Letter from the editor: <a href="/expert-insights/buying">FHBs, if you’re not wealthy, you will have to compromise</a>
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jduke-EHk3XBmHkn

The 11 questions every first home buyer should ask themselves

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A new Centre for Independent Studies report, Eight Housing Affordability Myths, has sought to debunk key claims relating to the major drivers in the long-term price growth.
<ol>
<li>Myth: Lower interest rates make housing more affordable </li>
<li>Myth: House prices are a speculative ‘bubble’ </li>
<li>Myth: The supply of land is fixed </li>
<li>Myth: Housing is an unproductive asset </li>
<li>Myth: Australians invest too much in housing </li>
<li>Myth: Foreign investors are responsible for rising house prices </li>
<li>Myth: Domestic investors/negative gearing/capital gains tax concessions are responsible for rising house prices </li>
<li>
Myth: House prices are fuelled by a credit ‘bubble’/excessive leverage 
</li>
</ol>
Source: Centre for Independent Studies report, 'Eight Housing Affordability Myths' 
The reported noted the debate over housing affordability was typically conducted in zero-sum terms.
"First home buyers are pitted against investors and incumbent property owners, baby boomers against younger age groups," it noted.
The implicit assumption is that there is fixed housing stock to be carved up among these competing interests. 
"In principle, the housing market should be able to accommodate increasing demand without upward pressure on prices," Dr Stephen Kirchner suggested.
But he concluded the supply side of the housing market had been taxed and regulated to the point that supply has not been able to keep pace with demand, leading to higher house prices. Rising real house prices have become a secular phenomenon, with the cyclical variation in house prices taking place around this rising trend. 
"Each of the housing affordability myths reviewed and debunked here serves to distract public policy from an increased focus on improving housing supply. He concludes many of the policies pursued by Australian governments in the name of housing affordability, such as first home buyer grants and concessions, increase demand for housing, while failing to tackle regulatory and cost barriers to housing supply."
The report noted new land supply had declined by an average 21% across Australia’s five largest capital cities in the past decade, pushing prices up by an average 148% to $504 per square metre.
"This report seeks to tackle these myths in an effort to improve the quality of public debate about housing affordability," Dr Stephen Kirchner said, adding housing affordability is a relative rather than an absolute concept. 
He also suggest it was also meaningless to assert that house prices are driven by ‘speculation’.
"Few people buy or invest in housing with the expectation of making a capital loss. 
"In that sense, every decision to buy (or not to buy) property is speculative. 
"As Ludwig von Mises observed, ‘Every action is a speculation, i.e., guided by a definite opinion concerning the uncertain conditions of the future.’
"The belief that housing markets are driven by ‘speculation’ misunderstands the role of speculation in an economy and encourages the pursuit of demand-suppression and diversion policies on the basis that prices are disconnected from fundamentals."  
<a href="https://www.cis.org.au/images/stories/issue-analysis/ia146.pdf?utm_source=140708+Media+Release+Housing&amp;utm_campaign=140709+MR+Housing&amp;utm_medium=email" target="_blank" style="line-height: 1.3em;">The report</a> by Dr Stephen Kirchner noted home ownership had eased from 71% of households in 1995 to 67% in 2012.
Dr Stephen Kirchner, a research fellow at The Centre for Independent Studies and senior fellow with the Fraser Institute, also posted a <a href="https://www.youtube.com/watch?v=VowSAoV0bw4" target="_blank">YouTube video</a>.
Bob Day, Saul Eslake, and Cameron Kusher helped guide his thinking.
{qtube vid:=VowSAoV0bw4}
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jchancellor-FAypfDUnLy

Eight housing affordability myths debunked: CIS

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Westpac has cut the introductory variable interest rate for its Flexi First Option Home Loan product by 49 percentage points. 
Customers opening a new Flexi First Option Home Loan with conditional approval by 3 October will have a 4.84% per annum interest rate for the first two years of their loan. The interest rate converts back to 5.33% after the two year period (comparison rate 5.38%).
Westpac has offered an ongoing discount on its Flexi First Home Loan product since April 2013, with a 0.21% per year rate cut bringing the variable rate to 5.12%. Borrowers cannot take advantage of both discounts at the same time.
Westpac also removed its $600 Home Loan Establishment Fee on all new home loans. According to The Adviser, Westpac brokers were told the discounts would “position Westpac competitively in the market as the bank to assist your first home buyers with their home loan and other financial needs”.
The bank has applied special interest rate offers to a variety of its other variable products.
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jrichardson-uRX5hFdKfN

Westpac courts first home buyers with 4.84% variable rate

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Prospective first home buyers may want to consider using credit, and positive exposure to it, to give them a leg up, according to Smartline Personal Mortgage Advisers.
While they warn that if you cannot manage the responsibility then it’s best to avoid credit, disciplined new buyers may see themselves benefiting from the consideration.
In fact, Smartline executive director, Joe Sirianni, said that responsible management of debt is a positive in this age of bank credit scoring, but it should be handled carefully.
“Debt isn’t unlike fire. Managed correctly and carefully, it can be incredibly useful, but in the wrong hands there’s a good chance you could get burnt,” said Sirianni.
He said that while years ago it was suggested that you had a personal or car loan or credit card that you would pay off, as a form of ‘proof’ that you can handle money, this is no longer the case when it’s far less likely you know your local branch manager.
In the late-1980s, when banks moved to centralised decision making, the emphasis shifted to whether or not you had defaults. Sirianni notes that with more automated credit scoring on computers in recent years, a lack of a previous credit facility can count against you.
You want to be building a good track record.
“Computer programs are essentially doing what the humans used to do – making a value judgment on your past performance and assessing your character,” he said, explaining that leaving a blank field in relation to previous credit conduct could be a negative.
“However, having never borrowed and never made a mistake is still always better than having borrowed and made a mistake,” he said.
“But it’s not as good as having borrowed and having repaid it.”
He said that if you’re planning to take a few thousand dollars on a credit card or car loan, and are able to repay, then this would be a positive, even while excess unnecessary debt should be avoided.
“It might even be as little as a credit card with a $500 limit that you’ve kept in good order – that would be all you would need to do well on the credit score,” he said.
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How to: Use credit to your benefit as a first time buyer

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GUEST OBSERVATION
Purchasing your first home is a great achievement, but do you feel like you are in over your head? 
Buying your first home won’t necessarily happen overnight. So, to help keep you on the right track, we gathered the top apps that covers everything from government grants and home loans to finding the perfect property.
<ol>
<li>
<a href="https://itunes.apple.com/au/app/house-hunter/id445304335?mt=8" target="_blank" style="line-height: 1.3em;">House hunter </a>Buying a property is full of new procedures that can be extremely confusing if you are new to the property market. The House Hunter app is a great tool for first home buyers as it can make the process easier and quicker. Some of the useful features include: track and compare and unlimited number of houses, a scoring method to help identify which house suit your needs, list of information of each property including ‘must-haves’ and ‘missing’, a mortgage calculator and a Quick Notes feature to save time and typing when putting in information about a property.  
</li>
<li>
<a href="https://itunes.apple.com/au/app/sro-mobile/id390079760?mt=8" target="_blank">SRO Mobile </a>Are you buying your first property in Victoria? Then this app will be extremely useful. The State Revenue Office of Victoria app helps first home buyers assess what Victorian grants they are eligible for. The Land Transfer Duty calculator is also available with this app. 
</li>
<li>
<a href="https://itunes.apple.com/au/app/tapmortgage-australia-mortgage/id402187202?mt=8" target="_blank" style="line-height: 1.3em;">tapMortgage </a>Do the terms stamp duty, transfer fees, first home concessions and mortgages make your head spin? Then take a look at the tapMortgage app to help clear the air. This app has a range of calculators for the items above as well for total interest paid, total savings for weekly or fortnightly repayments compared to monthly repayments as well as the savings you would make based on any extra repayments.  tapMortgage can help give you an indication of how much you can afford. 
</li>
<li>
<a href="https://itunes.apple.com/us/app/myofi/id660150695?mt=8" target="_blank" style="line-height: 1.3em;">MyOFI </a>Open inspections are a large part of house hunting, but can be time consuming.  MyOFI is a great way to organise and speed up your open for inspection schedule. Being one step ahead of other potential buyers in the market can make all the difference.  All you need to do is sign up, enter your contact information and property search requirements and the app will give you an individual QR code. You can then give this to the real estate agent at every open house instead of filling out your information, saving you time. This app also allows you to log all of your inspections to help you keep track. It will store the photos, address and agent’s details as well as any notes you wish to include yourself. 
</li>
<li>
<a href="https://itunes.apple.com/au/app/savings-goals/id507466769?mt=8" target="_blank" style="line-height: 1.3em;">Savings Goals </a>Are you struggling to save for a 20% deposit? Saving 20% of the purchase price or more cannot only help give you a more competitive interest rate, but it can also keep other costs to a minimum, such as Lender’s Mortgage Insurance.  With this app, you simply enter a target amount and a target date and this app will give you a suggested schedule and will also track your progress. It will let you know how close you are to your target date, what proportion of your target you’ve saved and whether you are ahead or behind schedule. What’s even better is that you can create as many savings goals as you like.  Saving for a large deposit can be extremely advantageous when it comes to applying for a home loan, so the more you can save, the better. 
</li>
<li>
<a href="https://itunes.apple.com/au/app/state-custodians-approve-me/id574346429?mt=8" target="_blank" style="line-height: 1.3em;">Approve Me </a>This app is great for those looking to obtain a home loan. You are able to select the product most suited to your requirements as well as see the current interest rates. You are also able to calculate if you can afford the home loan repayments and even obtain an instant online pre-approval. This would be extremely useful if you are out house hunting as you will have an idea of how much you will be able to afford.
</li>
</ol>
Gavin Smith is director and general manager of <a href="https://www.statecustodians.com.au." target="_blank">State Custodians</a> and has over 20 years’ experience in leadership roles within the banking services sector.
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gsmith-qGJafBfKnu

Six handy apps for first home buyers

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GUEST OBSERVATION
It’s Saturday morning in West Brunswick, a suburb in Melbourne’s inner north. From my bedroom window I can see a crowd gathering across the road for a house inspection.
The crowd swells to 60 or so people – couples, couples with school-aged children, couples with small babies and then there are small groups of young people, clearly looking for share housing. Surveying the scene I feel like I can predict who my new neighbours might be.
Or, at least I am fairly sure who they won’t be. This semi-renovated three bedroom house has been up for rent three times in the past three years. At $560 per week the rental price is steep, yet each house inspection has attracted crowds like this one. And each time my new neighbours have been couples with a small baby. Young single people did not get a look in.
This is hardly surprising. The scene played outside my bedroom window reflects broader trends. Landlords <a href="https://www.realestate.com.au/blog/finding-the-right-tenant/" target="_blank">want safe bets</a> – people who can pay the rent, withstand rent increases, won’t trash the property and may even improve it.
And in a tight housing market with national demand outstripping supply – especially at the low end of the <a href="https://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/NHSC/Downloads/PDF/housing_supply_affordability_report.ashx" target="_blank">affordability market</a> – and rental vacancy rates <a href="https://www.ahuri.edu.au/housing_information/review/evrev053" target="_blank">between 1% and 4%</a> in capital cities across Australia, most landlords can afford to be choosy.
Young people find it hard to compete, especially in some segments of the rental market. Recent evidence indicates that young people are more likely to be in precarious housing than other age cohorts. They are more likely to be in unaffordable housing, private rental or overcrowded households, and to have recently experienced a forced move. And compared with couples with children they are almost seven times more likely to dwell in housing that is in poor condition.
<a href="https://www.vichealth.vic.gov.au/~/media/ResourceCentre/PublicationsandResources/Health%20Inequalities/Precarious%20housing/Precarious_Housing_Full_FINAL_2August.ashx" target="_blank">Preliminary evidence</a> is also emerging that like other age groups, young people’s experience of precarious housing also impacts negatively on their health and well-being, especially their mental health.
It’s little wonder, then, that young people are leaving home later than previous generations, typically around 23 or 24, often returning to the family home multiple times following job loss, tenancy breakdown or other life crises, before they settle into <a href="https://aifs.org.au/institute/pubs/diversity/DiversityAndChange.pdf" target="_blank">fully independent adulthood</a>.
This social trend has real consequences: for family finances, parent-child relationships and the way young people themselves imagine their place in the world, their rights and responsibilities, as well as their sense of capability, agency and autonomy.
This trend is only likely to increase if the <a href="https://theconversation.com/young-people-are-now-on-the-edge-of-our-reconfigured-welfare-state-26697" target="_blank">proposed changes</a> to the Youth Allowance and Newstart proceed as outlined in the recent federal budget. In a policy first, 30 is defined as the upper age of youth. And young people who finish their education and are looking for jobs – or those who get a job and lose it – will not be entitled to Youth Allowance (up to to the age of 25) or Newstart Allowance (25 years and older) for six months.
On $207 for <a href="https://www.humanservices.gov.au/customer/enablers/centrelink/youth-allowance/payment-rates" target="_blank">Youth Allowance</a> (living away from home) per week or $255 <a href="https://www.humanservices.gov.au/customer/enablers/centrelink/newstart-allowance/payment-rates-for-newstart-allowance" target="_blank">Newstart Allowance</a>, combined with maximum payment of $63 in <a href="https://www.humanservices.gov.au/customer/services/centrelink/rent-assistance" target="_blank">Commonwealth Rent Assistance</a>, young people currently find it extremely difficult if not impossible to access and maintain affordable housing. This will quite simply be impossible if benefits are, as proposed, suspended for six months.
While difficult for those young people who enjoy the support of their families, it is almost impossible for those who lack such support. These are the 22,000 or more young people estimated to be homeless on census night – a figure recognised by the Australian Bureau of Statistics as an underestimation of the <a href="https://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129545638" target="_blank">actual population</a>.
This lack of support extends to nearly 3,000 young people nationally who are exiting out-of-home care services. A range of evidence suggests that anywhere between 40-60% of these young people will be homeless within a year of leaving care. Currently, it is estimated that 43,000 young people are receiving the youth allowance and living away from home.
These young people, who typically aspire to nothing less than their home-based peers (a house, job, sense of belonging and money to make a life), are <a href="https://www.vichealth.vic.gov.au/~/media/ResourceCentre/PublicationsandResources/Health%20Inequalities/Precarious%20housing/Precarious_Housing_Full_FINAL_2August.ashx" target="_blank">multiply disadvantaged</a> in the housing market. Without the safety net provided by the family they risk free-falling into long-term poverty and disadvantage. Most have low levels of education, with over half in some studies recording their highest level of education as Year 11 or below. Of those who find their way to services, nearly 90% are unemployed or not in the labour force.
We know that these young people are <a href="https://www.bsl.org.au/Social-exclusion-monitor" target="_blank">three times more likely</a> to experience social exclusion. Also compared to full-time employees, unemployed people are around 15 times more likely to be in <a href="https://www.vichealth.vic.gov.au/~/media/ResourceCentre/PublicationsandResources/Health%20Inequalities/Precarious%20housing/Precarious_Housing_Full_FINAL_2August.ashx" target="_blank">unaffordable housing</a>.
Like other homeless populations, these young people have <a href="https://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129545051">few other housing options</a>. Most do not qualify for public housing, and when they do many languish on long waiting lists for a housing tenure that is widely recognised by policymakers and young people themselves as unsuitable.
Once homeless, some – depending on what area are living in, be it metropolitan, rural or remote – may find temporary refuge for six to 12 weeks in crisis accommodation. Some of these – if they are lucky – may go on to government-funded transitional accommodation for up to 12 months. A tiny number, and arguably the luckiest of all, end up in youth foyers: housing that is combined with tailored education and employment support.
The rest, however, continue to live rough, couchsurf, or try to make a go of it in rooming houses with shared bathroom and kitchen facilities. Increasingly, some find themselves in unregistered rooming houses: ordinary houses in the suburbs in which unscrupulous landlords sublet bedrooms at a premium price. Here, disadvantage is concentrated and a culture of violence and conflict is common. These are hardly the places to build sustainable, independent lives.
With a generation at risk of being locked out of the housing market and a significant minority of these falling through the gaps of the rental market, the need for a national youth housing policy has never been more pressing.
Oh, I almost forgot. We have new neighbours across the road: a couple with a small baby.
Shelley Mallett is professorial fellow in social policy, School of Social and Political Sciences at <a href="https://www.unimelb.edu.au/" target="_blank" style="line-height: 1.3em;">University of Melbourne</a>.
Shelley Mallett has received ARC and AHURI funding in the past. She is general manager, Research &amp; Policy Centre at the Brotherhood of St Laurence.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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po-LsXgBTHBmX

Crowded housing market gives youth little chance for independence

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There are many measures of affordability in the marketplace, sadly I believe that many of these measures fail to accurately depict the affordability or otherwise of housing in Australia.  
The main reason being that housing affordability is an extremely complex issue and many factors drive the affordability of housing. In my future posts I am going to investigate some of these factors and tell you what you should really be asking yourself about affordability when purchasing a home.
Can I start by stating that simplistic means of comparing property prices between countries I believe are ineffective. 
Due to different tax regimes, standards of housing and attitudes to property and wealth accumulation there may be perfectly good reasons why a household is prepared to spend more on housing in Australia for example than they are in the United States.  I think common measures such as the median multiple (ratio of household income to property prices) are not necessarily a good way to measure affordability or otherwise, there are a lot more factors at play.
Interest rates
Interest rates are obviously an important component in determining housing affordability.  When interest rates are lower, interest repayments on home loans are lower and as a result ‘affording’ the repayments on a mortgage should be easier.  Of course, as we are seeing at the moment, lower mortgage rates often encourage higher property values. 
So while it’s true that lower interest rates make housing relatively more affordable, if values are rising and sales increase then it can somewhat off-set the affordability benefit of lower mortgage rates.
Furthermore, the typical home loan in Australia is 25 years and the vast majority of home loans are on a variable rate.  As a result, as the Reserve Bank adjusts monetary policy there is virtually an instant effect on household budgets and balance sheets.  For example, at the moment the standard variable mortgage rate sits at 5.95% however, over the past 10 years the variable mortgage rate has averaged 7.27%, over the last 20 years it has averaged 7.45% and over the past 25 years (the typical home loan length) it has averaged 8.47%. Over the past 25 years, standard variable mortgage rates have been as high as 17.0% and as low as 5.75%.
The point is that interest rates can vary greatly over 25 years and over the life of the loan the current interest rate is not a great means of measuring the cost of a mortgage over its lifetime.
Wages / Income
If you are going to take out a mortgage on a home (as most purchasers do) you are going to need an income and you are going to need some savings.  In Australia there are a number of measures of wages/income and it is difficult to know exactly which one is best to use to measure housing affordability.
The National Accounts measure the ‘Real net national disposable income – chain volume’.  This measure does have a number of shortcomings in that it is not an individual measure and that it includes items that one can’t really spend such as superannuation.  Additionally this data is only available from a national standpoint. 
The Australian Bureau of Statistics (ABS) publishes its wage price index each quarter however, it measures wages only and doesn’t measure income captured from other sources.  The Census is undertaken each five years and does report on the median weekly household income however, the shortcoming here is that it is only updated every five years. 
We also have the Household Income Survey from the ABS however it is only undertaken bi-annually and takes a fairly macro view of household incomes
Unfortunately all of these measures have significant shortcomings which need to be considered when looking at any housing affordability measure.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
Labour force / unemployment
Paying off a mortgage eats up a significant portion of a family’s wage.  Undoubtedly if home values weren’t so high and mortgages weren’t so large disposable incomes would be much greater.  Although labour force data or unemployment statistics need not necessarily be an input into any housing affordability measure they are a key consideration for someone looking to purchase. 
The threat of unemployment means that despite the fact housing may seem affordable it is less likely someone would purchase. Obviously if you are unemployed it is going to be difficult to purchase a home.
Another factor to consider is although measures of income show that over recent years wages and disposable income have increased, what they don’t take into account is how many more women are working nowadays.  Labour force data shows that in May 2014, 54.1% of the workforce was male and 45.9% was female, 30 years ago 62.3% was male and 37.6% was female.  Today, 35.5% of full-time workers are female compared to 28.9% 30 years ago. 
The point here is that although household incomes have increased, a big proportion of the increase is due to the structural change associated with a greater number of women in the workforce.  
The rising prevalence of dual income households means that whereas 20 to 30 years ago couples could afford mortgage repayments on a single wage, today they largely require dual incomes.
Home values / prices
Most measures of housing affordability look at median prices or median values. 
The important thing to remember here is that a median is just the middle value so there are just as many homes worth more and less than that figure.  In fact the median price looks only at the middle value of properties which have sold over a period.
This obviously has significant shortcomings because what is predominately selling could be at the affordable or expensive end of the market and this could bias the median one way or another.  Remember that typically only 5% to 7% of total housing stock transacts in a given year.
Another important consideration here is that a national median measure doesn’t really tell you very much at a localised level.  In Australia, 66% of residents live in a capital city with around 55% in Sydney, Melbourne, Brisbane or Perth. 
Quite simply many residents don’t have a choice but to live in a capital city so if you are trying to determine affordability in Melbourne, the cost of housing in Mildura is of no valuable comparison whatsoever.
Rental rates
If you don’t own a home or pay-off a mortgage you have to live elsewhere, for the most part non-homeowners rent.  The cost of renting is an important consideration when trying to determine housing affordability.  If rents are increasing but home values are flat or falling purchasing a home may start to look a more attractive prospect. 
Once again the challenge with a measure which compares rents to house price (or mortgage repayments) is that it is not a localised analysis.  For example for the cost of renting in Paddington in Sydney you may actually be able to pay off a mortgage in Guildford but to the renter is the opportunity cost of owning their own home and being further away from the city centre, harbour and the beaches worthwhile? 
Who knows but for anyone looking to purchase these are the sorts of questions they need to be asking themselves.
The other key consideration is that the ongoing costs associated with owning a home as opposed to renting are difficult to determine, but they are much more than renting.  As a renter, the ongoing costs generally include: the rent, the bond, electricity, gas (if applicable), cleaning (if you move rentals) and the cost of moving if/when you move. 
As an owner of a home the costs incurred include: the mortgage, electricity, gas, council rates, stamp duty when you purchase, ongoing maintenance of the property, strata fees (if you own a unit) and agent fees if/when you decide to move.  The ongoing costs associated with owning a home are much greater than the ongoing costs of renting.
Who does housing affordability affect most?
Housing affordability affects everyone.  The high cost of housing acts as a disincentive for people to move to more appropriate locations, discourages people from upsizing and downsizing and discourages movement intra or interstate for employment.  The group most affected by housing affordability however is those who don’t as yet own a home.
Again if we think about many of the measures of affordability used they look at typical or median prices values and compare to interest rates and typical wages.  The problem with this approach is that very few people are actually typical.  As a generalisation, most people that rent are younger, starting out their careers. 
There is a high likelihood that their wage is currently lower than the median (although there is a good chance it will increase as they are promoted or move jobs).  If their wage is below the typical wage then they should not be looking to buy the typical (or median house).
Of course there are plenty of renters that earn above average wages but choose not to purchase as well but when trying to tackle the affordability question I think many of the measures that we look at are far too simplistic, but hamstrung by the quality and granularity of income data. 
Housing affordability is an individual thing and none of the measures really tell the true story about how affordable or unaffordable housing in Australia is.  When determining whether you can afford to buy a home I think the most important things to consider are:
<ol>
<li>What are current mortgage rates and at what higher level would I not be able to repay my mortgage?</li>
<li>How secure is my job and what would happen if I was to lose my job for an extended period?</li>
<li>Over the next few years what is the realistic expectations for my wage, will it rise and by how much?</li>
<li>What impact would it have if I found a partner or lost a partner on my ability to repay the mortgage?</li>
<li>If I plan to have children, children cost a lot what impact would that have on my ability to repay the mortgage?</li>
<li>Compared to my current rent and associated costs, how much more is paying off a mortgage and the other day-to day costs of home ownership really going to be and can I afford this?</li>
<li>What am I willing to sacrifice in order to buy a home; lifestyle, location, overseas travel etc?  What is the opportunity cost of buying a home?</li>
</ol>
I am sure there are many more questions to ask when looking to purchase but I think as a start these questions are essential.  I say that the measures of affordability which are readily available should be taken with a grain of sale. 
It’s more important to ask yourself some tough questions about whether or not you can really afford to be a home owner.  If you have any doubt you really need to consider whether it is worth the risk or not.
For what it’s worth, I think that housing affordability is a significant issue for young Australians, particularly those within our capital city markets.  he major problem is that most Australian’s choose to build wealth through property and 23 years of unabated economic growth has on exacerbated this. 
The challenge now is how can you deliver affordable housing for younger Australians without bringing down the cost of existing housing which politically and economically would be detrimental to the overall health of the Australian economy.
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ckusher-ujnxiKuFQs

Forget affordability measures and ask yourself some tough questions

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Well, more real estate baloney.
This time it is about first home buyers – or the lack of them.
The ABS statistics released today show that first home buyer activity, measured as the proportion of all owner-resident lending, is the lowest in 23 years.
You would have heard all about it on the news tonight or will read about in tomorrow’s papers.
But something is wrong here.
<blockquote>
The fact is, we should all question a lot more of the real estate data that is being fed to us.
</blockquote>
And like many things these days in the real estate world, it’s the figures that are incorrect.  The ‘official’ statistics are measuring only part of the whole, yet very few question the results.
In short, there is a hell of a lot of first home buying taking place.
Most first home buyers buy an established property, and in most places across Australia, first home buyer grants do not apply to established property, only new stock.  And where it does apply, it amounts to very little, and to many it isn’t worth the paper work.
So, for mine, the ABS (along with others) is not correctly corralling first home buying activity.
It is interesting to watch the property intelligentsia trying to explain the reasons for the fall in first home buyer interest, as shown in the first two charts below.
"Generation X are choosing to rent rather than buy – they are buying investment housing instead of homes for themselves – housing is unaffordable so they cannot buy – we need more grant monies"; and it goes on.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-1.jpg"><img class="alignnone size-full wp-image-7359" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-1.jpg" alt="FHB #1"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-2.jpg"><img class="alignnone size-full wp-image-7360" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-2.jpg" alt="FHB #2"></a>
I think the statistics are wrong.
Why wouldn’t first home buyers be buying?
<ul>
<li>Interest rates are extremely low</li>
<li>Banks are keen to lend</li>
<li>Mum and dad are practically paying for the deposit to get rid of their ‘boomerang’ adult children (at 30, one wonders if ‘children’ should really apply)</li>
<li>Yet according to the same talking heads who claim low first home buyer take-up – housing affordability is the best in over a decade</li>
<li>And to prove that point, there has been little change in the size of the average first home loan in recent years – see my third chart below</li>
</ul>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-3.jpg"><img class="alignnone size-full wp-image-7361" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-3.jpg" alt="FHB #3"></a>
Late last year the ABS put out a great study – sadly it comes out only every five years or so – called Housing Occupancy and Costs (catalogue number 4130.0 for those who want to read the 92 page document).  This shows that first home buyer activity is much higher than the housing finance loan data suggests.
The HOC study shows that over the past three (3) years (and importantly, covering much of the recent first home buyer slump) just short of 1 million households (988,000) bought a property across Australia.
Of the 988,000 transactions over the last three years, 36% or 355,000 were first home buyers.  Eight out of ten first home buyers (289,000 or 81%) bought a second-hand or established home.  Just 19% bought a new property or something off-plan.
My conversations with real estate agents, including those selling new stock, indicate that first home buyer activity is much higher than the low levels officially reported.
I suspect that first home buying activity is close to the historic average – something around 35% of the total owner-resident market and around 20% of the total housing market, when including investors.  This is what I am seeing on the ground; and it explains the strong sales results across much of the country over the last 12 to 18 months.
First home buyers must be taking part; otherwise those upgrading or downsizing would not be able to sell as fast or as often as they currently are.  It is first home buyers that make up a significant part of the buying audience for their established homes.
It is good to see that others, too, are starting to question the results.
I note that the RBA, in their current chart pack (June quarter), have left off first home buyers in the graph outlining loan activity across the country.  See the last chart on page 6 of <a href="https://www.rba.gov.au/chart-pack/index" target="_blank">this</a> document.  It has been included in previous RBA charts.
Michael Pascoe, too – thinking man that he is – has also questioned the results.  See <a href="https://www.smh.com.au/business/comment-and-analysis/first-home-buyer-statistics-not-adding-up-20140609-39sam" target="_blank">here</a>.
You should too.
The fact is, we should all question a lot more of the real estate data that is being fed to us.
The media – for the most part – aren’t interested in checking the statistics before they regurgitate them.
Much of what you read these days about property is sadly bunkum.
Ohh…….. and don’t get me started on the need for or accuracy of a daily price index or suburban median house/unit prices!
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

Have first home buyers really gone missing?

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Foreigners’ access to the $5,000 New Home Owner Grant will be scrapped in ­tomorrow’s state budget.
Foreign investors have been able to secure $5,000 for each new home purchase. They represented 1.3% of the scheme's take-up.
The decision, heralded in today's Daily Telegraph, follows <a href="https://www.dailytelegraph.com.au/realestate/buying/foreign-buyers-are-cashing-in-on-nsws-new-home-grant-scheme/story-fni0cate-1226817098977" target="_blank">a campaign by the The Daily Telegraph since February</a> which secured the support of Opposition Leader John ­Robertson.
The grant will be only available to individuals who are Australian citizens or permanent residents.
The Telegraph's state rounds reporter Andrew Clennell published previously unavailable data that showed some $2 million has been paid out to non-residents.
“We’re all about making sure these grants help those in our own backyard,” NSW Treasurer Andrew ­Constance told the News Ltd audience.
Since the New Home Owner Grant scheme was instituted in July 2012, there have been 429 ­recipients who are non-residents — or 1.3% of recipients.
The figures come despite NSW Premier Mike Baird expressing recent concern about the lack of official information on foreign investment residential purchases in NSW.
His concerns were made to <a href="/expert-insights/investing/nsw-treasury-in-the-dark-with-firb-foreign-buyer-data">the House of Representative inquiry into foreign ownership of residential property</a>.
The scheme began after the government scrapped first homeowner grants for existing properties and raised them for newer properties.
There have also been a small number of multiple applications.
From now on the New Home Grant will be restricted to one grant per person per year.
Opposition Leader John ­Robertson called in February for the government to change the New Home Grant scheme.
“The O’Farrell Liberal government is paying $5000 to overseas property investors to buy homes and land in Australia – that’s money taken straight out of the pockets of young first home buyers,” Opposition Leader John Robertson said at the time on the then O'Farrell government policy.
“Young couples doing the right thing and working flat-out to save for that deposit are paying the price for the O’Farrell Liberal government’s bungling of this scheme."
Last week John Robertson noted ABS figures showed that just 1,099 first home buyers received financing to purchase a home in April 2014 – down from 1,191 in March 2014 and less than half the level of the 2,415 who received financing in March 2011 before the Liberals came to power.
“Mike Baird has been patting himself on the back over the weekend for extending the threshold for first home buyers purchasing new properties – the ABS has confirmed that he is locking more young families out of owning their own home.
“First home buyers now represent only 7.6% of the NSW housing market – they have plummeted from 18.3% share of the market in March 2011."
The Shadow Treasurer Michael Daley accused the government of giving a leg up to overseas speculators – "and people buying their second, third or tenth property."
The grant is paid as a discount on stamp duty for properties worth up to $650,000 and vacant land worth up to $450,000. 
<a href="/expert-insights/building/nsw-first-home-buyers-can-buy-up-to-750-000-under-extended-fhog">The grant will be extended to new home purchases up to $750,000 in another pre-budget advisory</a>. 
The prospect of overseas non-citizens buying up newly built houses and apartments in bulk - all receiving multiple $5,000 grants under the NSW New Home Grant Scheme - was alarmingly raised in the Daily Telegraph.
<a href="/news/stay-calm-local-buyers-dominate-in-sydneys-sutherland-shire">It was wrapped within the now refuted suggestion that these Chinese investors were keeping first home buyers out of the property market</a>.
 
 
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Foreign buyers to be denied NSW new home owners grant

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There are two very frequently asked questions in real estate. The first is what counts as a “good” investment property, also known as investment-grade stock. The second is the damage that securing one of these properties will do to your back pocket.
Of course, this differs from city to city. Wakelin Property Advisory, who specialise in the Melbourne market, have answered these two questions for one-bedroom apartments, two bedroom apartments and two bedroom houses.
Firstly, they note that the property must be in a high land value location, close to transport, schools, village-type shops, restaurants and recreation activity and must be on an attractive street with architecturally consistent streetscape.
These are the non-negotiable aspects when they property hunt.
Richard Wakelin notes that this is so you can ensure somewhere with consistent, historical growth and that has the crucial scarcity factor.
So how much do you need to scrape in to purchase these types of property?
Wakelin notes that $400,000 is the starting point (if you aren't yet at this capacity, the video below includes some tips for starting out on less).
This nets a one bedroom apartment within the inner north that fulfils the above criteria.
Suburbs for a $400,000 budget (inner north):
<ol>
<li>
<a href="/news">Carlton North</a> 
</li>
<li>
<a href="/news">Brunswick</a> 
</li>
<li>
<a href="/news">Kensington</a> 
</li>
<li>
<a href="/news">Flemington </a> 
</li>
<li><a href="/news">Ascot Vale</a></li>
</ol>
Suburbs for a $450,000 budget (inner bayside apartments):
<ol>
<li>
<a href="/news">Elsternwick</a> 
</li>
<li>
<a href="/news">Elwood </a> 
</li>
<li>
<a href="/news">St Kilda </a> 
</li>
<li><a href="/news">St Kilda West</a></li>
</ol>
Suburbs for a $450,000 budget (inner eastern suburbs apartments):
<ol>
<li>
<a href="/news">Hawthorn</a> 
</li>
<li>
<a href="/news">Toorak</a> 
</li>
<li><a href="/news">South Yarra </a></li>
</ol>
Higher budgets:
<ul>
<li>$600,000: Can net you a two-bedroom apartment in the inner north</li>
</ul>
<ul>
<li>$650,000: Can net you a two-bedroom apartment in the bayside and inner eastern suburbs 
</li>
<li>$700,000: Can net you a single fronted two-bedroom cottage in the inner north 
</li>
<li>$800,000: Can net you a single fronted two-bedroom cottage in the bayside and inner eastern suburbs</li>
</ul>
You can watch the video below for more of Richard Wakelin’s thoughts on investing in Melbourne and what to do if your budget doesn't yet stretch to $400,000.
{qtube vid:=G4xUGkdIFrs}
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