Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Mortgages

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Mortgage Choice announced the appointment of John Flavell as its chief executive officer, set to join the company in April 2015.
He comes from National Australia Bank’s MLC where he is the executive general manager, wealth advice, with more than 20 years experience in executive leadership positions and 15 years in financial services.
Flavell has held senior roles at Aussie Home Loans where he was part of the executive team responsible for the successful transition of the business into mortgage broking.
Mortgage Choice’s current chief executive officer Michael Russell will work alongside Flavell in a transition phase and then depart the business at the end of the 2014/15 Financial Year.
“While I cannot wait to start in my new role, I am going to take a break for a little while to spend some time with my three daughters," Flavell said on his Christmas Eve appointment announcement.
"I will then come back fresh in April and ready to work closely with Michael and the executive team on accelerating the business for further success in 2015 and beyond.”
Russell joined Mortgage Choice as CEO in 2009, developing two three-year plans to expand the company.
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John Flavell appointed to succeed Michael Russell at Mortgage Choice

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The latest Australian Bureau of Statistics residential building approval figures present a positive outlook, with Master Builders translating them into a strong forecast for the rest of 2015.
Master Builders Australia’s chief economist Peter Jones pointed to the strong increase in the statistics, which actually brings November 2014 to a record high.
“The 7.5% seasonally adjusted increase in total building approvals for November 2014 reflects confidence in the market with the strength of the result slightly above industry expectations reflecting positive momentum,” said Jones.
“The November result was built on strong approvals growth in higher density dwellings in the major cities. The 17.2% seasonally adjusted rise for other dwellings (units and apartments) confirms the changing face of dwelling demand as higher density living becomes increasingly accepted,” he said.
He said that the results point to a sustained pipeline of work over the next 18 months. Effectively, this translates into an increased number of jobs in the residential home building sector. Private sector apartments rose 16.7% and private sector houses dipped 0.3%.
Meanwhile, chief economist for CommSec, Craig James, noted that the year has started with “plenty of promise”, particularly with the Aussie dollar falling, a drop in the petrol prices and a record number of council approvals to build new homes.
“Clearly there is no need for official interest rates to be cut. But with inflation low and numerous uncertainties across the global economy, there is also no need for higher interest rates,” his analysis of the data explained.
“The strength of new building will boost housing supply over 2015 and, in turn, lead to softer growth of home prices. The more balanced housing conditions will remove another problem for Reserve Bank policymakers,” he said.
They expect no interest rate change this year, which will assist the construction industry.
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jduke-EHk3XBmHkn

Record high building approvals promising a strong 2015

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The proportion of borrowers refinancing has jumped to 37.3% of all new mortgages written in December, according to the AFG Mortgage Index.
The Index shows the proportion of home loan borrowers refinancing over the month was the highest level since that recorded in March 2012.
The last quarter of 2014 saw an increase from 33.5% refinanced in September by 3.8%.
Those opting for fixed rates fell to 14.5%, down from 17.1% in November.
The proportion of introductory loans jumped from 4.9% in November by 0.9% to the December month. These are incentivising products offered by lenders.
AFG’s general manager of sales and operations, Mark Hewitt, said that in March 2012, when we last saw refinancing at these highs, borrowers were looking to fix, with fixed interest loans at a four year high.
“This time round with speculation that interest rates are more likely to go down than up, borrowers are shopping around for the variable rate deal and avoiding fixed for the time being,” he said.
Victoria, South Australia and Queensland saw refinancing most popular at 42.2%, 41.7% and 39.9% respectively. Western Australia and New South Wales achieved 36.7% and 31.8%.
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Refinancing surges in December: AFG

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At the close of 2014, the big topic was whether the Reserve Bank (RBA) would actually cut rates this year, with an increasing number of experts forecasting the board would do just this.
It seems consumers may be responding to the speculation, according to Mortgage Choice spokesperson Jessica Darnbrough, who said their statistics show more borrowers choosing variable rates.
“At the beginning of December last year, speculation was rife that the Reserve Bank of Australia could cut the cash rate throughout 2015,” Darnbrough said.
“Ongoing weakness in the Australian and global economy has encouraged some analysts to change their cash rate forecasts to include up to two further rate cuts,” she said.
“While future cash rate cuts are purely speculation at the moment, it would seem the chatter has been enough to encourage more home buyers to take out a variable rate mortgage.”
Victorians are those most keen on variable rates, totalling 85.79% of all home loans written in December. South Australia and Western Australia totalled 82.81% and 82.11% respectively for variable rate loans.
New South Wales borrowers, at the bottom of the pile for variable rates, saw fixed rate demand strong at 30%.
“Australia’s lenders are offering some very sharply priced products at the moment, so regardless of what type of home loan product you eventually decide upon, now is a good time to be a home buyer,” said Darnbrough.
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RBA speculation sees borrowers turn to variable: Mortgage Choice

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Mortgage stress is one of those difficult situations that no one wants to face. For new buyers, and even experienced property owners, the thought of being in a scramble to afford your repayments understandably evokes a significant amount of fear.
If you are facing mortgage stress, the harbinger of a potential foreclosure, there are certain things you can do to manage the situation.
Smartline Personal Mortgage Advisers’ executive director Joe Sirianni suggests that, clearly, the first thing to bear in mind is how to reduce the possibility of ending up experiencing mortgage stress in the first place.
Anecdotal experience leads Sirianni to believe that those in financial stress have held onto their asset for too long as the stress starts to build.   “Eventually their debt repayments put them in a position where they go very close to bankruptcy and, in hindsight, will express their wish that they’d sold their home sooner in order to get rid of their debt earlier and give themselves time to get back on track,” he said.   “That’s not to say that making the decision to sell your home in order to clear debt isn’t a stressful and deeply emotional choice to make. Rather, leaving the decision-making process for too long can make an already stressful situation even more difficult – it’s best to talk about the situation and discuss options right from the beginning.”
So, firstly, if you think mortgage stress is going to become a possibility or you’re starting to feel the pinch then consider to yourself whether selling early is the best option for you.
Similarly, if you can predict what the worst case scenarios may be then you are often better placed to handle them should they arise.
Redundancy, illness or injury can be possible outcomes for every individual and it is worth putting in place insurances ahead of time to mitigate these risks.
Personal insurance products, such as income protection insurance, trauma insurance and possibly life insurance can be worthwhile considerations.
If this is something you haven’t managed to do – be upfront with your lender and tell them quickly what the problem is.
“It’s always best to be upfront with your lending institution to let them know about your situation – particularly if you predict that you’ll experience financial difficulties in the near future if you don’t secure another income,” Sirianni advises.
For lenders, it’s in their interest to assist you during these times. You may find that a lender can assist by helping you change your loan to interest only for a period until you find another job, or give you a “repayment holiday” until you’re on your feet.
While you do have an obligation to repay your loan, lenders are not out to work against you and there’s often a solution you can work with them towards.
“Not only are many people surprised by how readily lenders will work with them, they find that any misconceptions around how they might manage the debt on their own are incorrect,” he suggests. This may include borrowers who believe they can use the equity in their home to assist during tough times – without realising that they need an income to have lending approved to pull out these funds.
Other situations that are seen by Sirianni as causing mortgage stress can include credit card and personal loan debt.
Now is the time to stop accruing more debt. Cut up your cards, speak to your lender and look to put yourself on a repayment plan, he suggests.
“If you find yourself in a distressing financial position as a result of an unforeseeable event that, in turn, sees you falling behind on your mortgage repayments and incurring significant credit card debt as a result, there are options available – highlighting the need to get on top of out-of-control debt from the very beginning,” he said.
In summary:
<ul>
<li>Consider selling earlier rather than later 
</li>
<li>Attempt to predict your difficulties ahead of time and prepare with insurances 
</li>
<li>Speak to your lender quickly 
</li>
<li>Cut up your credit cards, and put yourself on repayment plans</li>
</ul>
Here are some <a href="/expert-insights/finance/what-to-do-if-you-are-in-mortgage-stress">more suggestions from the Consumer Credit Legal Centre (NSW)</a>.
ALSO READ: <a href="/expert-insights/finance/what-is-negative-equity-and-what-can-you-do-about-it">What is negative equity and what can you do about it </a>
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How to: Manage mortgage stress

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A trusted Melbourne lawyer who swindled clients out of more than $12 million received a 12-year jail sentence for his crimes last week.
The Supreme Court of Victoria heard Philip Linacre operated a 12-year-long <a href="https://www.smartcompany.com.au/legal/19226-how-graham-hoy-created-australia-s-worst-ponzi-scheme-and-got-13-years-jail">Ponzi scheme</a>, a fraudulent investment where returns are paid to investors are paid by new investors, rather than from profit earned from the investment itself.
Linacre told clients, including his own family and friends, their investments would be given to a third party as a mortgage loan, promising them between returns of 12% and 24% on the investments. He was instead using their money to pay out the interest on other clients' investments.
Linacre, who said he started the scheme because of his own bad financial position, operated the arrangement from 2000 until 2012, when he turned himself in to police. He pleaded guilty to 21 counts of dishonesty and five counts of having a deficiency in a trust account.
Chief Justice Warren called Linacre’s actions “calculated and complex” and said many of the victims were already in difficult financial circumstances when Linacre convinced them to invest.
“You have committed a number of serious offences in the trusted position of a lawyer,” said Warren in her ruling.
“Importantly, these victims came to you in their time of need. Many sought information about investing their life savings, superannuation or inheritance. They placed complete trust in you. You did not only steal money from your victims, you robbed them of their future.”
Warren also found many of Linacre’s victims suffered ill health because of his criminality.
Linacre will serve a minimum of eight years’ jail.
Brett Warfield chief executive of forensic accounting firm Warfield &amp; Associates, said Ponzi schemes have been around for a long time and there were two major red flags for investors to watch out for.
“The first, and most glaring, is the rate of return you are promised,” says Warfield.
“As soon as you are promised above the market rate, so in this instance the mortgage lending rate, when you get someone offering double, triple or four times that, straight away that should be a sign.”
Warfield says the greater the return on investment, the greater the risk for investors.
“The other thing with Ponzi schemes is asking questions about the actual investment,” he says. “Asking what type of information will be provided about my investments?”
Warfield says investors should expect detailed reports and correspondences on their investment, such as what one might expect from superannuation funds. He says although some people may feel uncomfortable asking for this information, investors have to be proactive to protect themselves.
“You have to be in charge of your money,” he says. “The good thing is vulnerable people who would have invested may see and may think twice.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Melbourne lawyer jailed for 12 years over “calculated and complex” Ponzi mortgage scheme

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The Reserve Bank has stated on more than one occasion that mortgage repayments are on average some 15% ahead of schedule, the equivalent of some two years worth of monthly payments. If this is true then despite endless talk of stretched household budgets, then we should actually see mortgage arrears declining to levels not seen in years.
The latest Fitch Ratings Dinkum Index, which records 30 and 90 day mortgage arrears, showed that arrears have declined to seven year lows (30 day) and fiveyear lows (90 day) respectively.
From <a href="https://www.bankingday.com/nl06_news_selected.php?act=2&amp;nav=13&amp;selkey=17947" target="_blank">Banking Day</a>:
"The strong housing market is suppressing home loan arrears. 
"Fitch Ratings, in its latest Dinkum Index analysing the September 2014 quarter, put loans 30 days or more past due at their lowest level since late 2007. 
"Fitch said delinquencies dropped by 14 basis point to 1.08%.
"Serious arrears also benefited, with loans 90 days or more in arrears sitting at 0.47%, the lowest level since December 2009.
"Arrears are expected to remain largely stable in fourth quarter 2014, Fitch said, due to low, stable interest rates, a strong housing market and lending, and relatively low (albeit rising) levels of unemployment."
Great to hear. While other developed countries have seen serious 90+ day arrears on up to 10 to 15 or more in every 200 mortgages in the period following the financial crisis, the equivalent figure for Australia is incredibly now below 1, which is wonderful news. The reasons are clear enough, being a combination of very low interest rates and the unique structuring of so many loans in Australia which <a href="https://petewargent.blogspot.co.uk/2014/04/stress" target="_blank">maintain repayments at the same level</a> when interest rates fall, thus allowing borrowers to build up sizeable repayment buffers when variable mortgage rates have been declining over a period of years.
This mirrors what has been <a href="https://petewargent.blogspot.co.uk/2014/11/genworth-q3" target="_blank">reported by Genworth (ASX: GMA) in Q3</a>, that delinquency rates have been cascading lower by book year since FY2008.
<img src="https://4.bp.blogspot.com/-iMv-Wc5yns0/VGaYJx9iI_I/AAAAAAAAROg/lbdTaLoqO7w/s640/GMA1.jpg">
That's great to see, with foreclosures in Australia now considered to be "<a href="https://petewargent.blogspot.co.uk/2014/04/stress" target="_blank">vanishingly rare</a>".
Arrears to Rise from Exceptionally Low Levels? 
One would think almost certainly, yes. There is realistically only one direction in which mortgage arrears can head over the medium term from such a pleasingly low base. Relatively low interest rates are more or less a 'shoo-in' for most of the remainder of this decade, but the other major factor which can cause mortgage arrears - unemployment - is rising in eminence across many regions of Australia.
<img src="https://1.bp.blogspot.com/-rebYUuOgS_E/VI3XQNQk8UI/AAAAAAAAR5g/9PSOV1YkK7Q/s1600/b2.jpg">
Where are the Risk Areas?
We will take an updated look at the latest unemployment rates by region data on Thursday of this week, but here are a few of the regions where unemployment rates have increased concerningly.
<img src="https://2.bp.blogspot.com/-E86GaqEpdTw/VI2Xh26I1-I/AAAAAAAAR4w/WXLYkm7KToU/s1600/LOGAN.jpg">
<a href="https://petewargent.blogspot.co.uk/2014/11/abc-cuts-10-percent-of-staff-and-sa" target="_blank">Recent reports have also highlighted</a> the elevated risk of credit default in a number of Queensland regions as the unemployment rate rises.
We'd add to this list of potential risk areas parts of South Australia where a weak labour market and consumer confidence have contributed to 5 year declines in median house prices in a number of outer suburbs such as Davoren Park, Elizabeth North,  Elizabeth East, Craigmore, and so on.
Fair Warning - Industry Closure Risk
Some on the chat forums have chosen to highlight that withdrawal of Holden may only directly result in a relatively small number of jobs and they have therefore dismissed the risk as insignificant.
That's one way to look at it, but a market is made up by the full range of views, and in this case we'll take the sell side of the equation.
As pointed out here previously, when one considers the total number of jobs which are likely to be lost from the shuttering of the car manufacture industry over the next few years - including from suppliers and support industries - in concert with flow-through impacts of rescinded business investment, consumer spending and so on - the potential impact on economic output of some $29 billion and up to 200,000 jobs nationwide could be <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-04-14/study-warns-carmakers-exit-could-see-200000-jobs-lost/5389682" target="_blank">prodigious</a>.
It's easy to dismiss the closure of the Holden plant as overblown, and to state that those who do lose their jobs can be redeployed.
Indeed so, but whether or not they can be redeployed within South Australia is another matter entirely.
If the forecast 24,000 jobs are lost in the state, note that the economy has taken fully seven years to add 24,000 jobs, and has added a net total of zero over the last four.
<img src="https://2.bp.blogspot.com/-qF47FgelF4g/VI3jrxoShBI/AAAAAAAAR5w/ceSC1asejvE/s1600/SOuth%2BAustralia.jpg">
A similar point stands for Geelong (and I own property in Geelong, so this is not merely the viewpoint of vested interest).
Article continues on the next page. Please click below.
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Positive Investment Decisions
Buying a home to live in is one thing, of course, but the primary advantage that a property investor has is that they are not compelled to buy property anywhere or at any time, so the shuttering of an entire industry should act as an automatic red flag.
"It might not be that bad" is not a compelling case for an investment decision.
Anyway, that's our view - that you should look for thriving economies, not those about to be sideswiped by a king-hit - so fair warning.
We'll provide an updated report on trends in elevated unemployment rates by region on Thursday of this week, so stay tuned for that.
In the meantime if there is one phrase to look out for which should always make property investors wince it is that "prices can't fall further in this region", which is another alarm bell which has so often foreshadowed financial loss.
MYEFO Impacts - The "Shock Absorber"
In the forthcoming MYEFO Treasurer Hockey will announce that the budget will be used as a "shock absorber" to shield the downside to the Australian economy from its declining terms of trade, driven by falls in key commodity prices, in particular that of iron ore.
<img src="https://3.bp.blogspot.com/-cXcsJ4JwoNs/VI3Ln628PBI/AAAAAAAAR5M/VdpOpY9Q8U8/s1600/IO%2Bprice.jpg">
What will this "shock absorber" mean? We will have to wait for the details, but one might expect to hear announcements concerning the following:
<ul>
<li>heavy government expenditure of infrastructure projects; and </li>
<li>thousands of jobs to be cut from the merger of closure of scores of government agencies, particularly in Canberra.</li>
</ul>
Potentially thousands of job cuts does not bode at all well for Canberra or the ACT housing markets in 2015, with rents already declining and now dwelling prices looking set to follow suit. Pass.
"Busting Labour Market Myths" 
Our chart packs have consistently revealed a worrying trend in Australia in recent years, that with the honourable exception of Queensland, <a href="https://petewargent.blogspot.co.uk/2014/10/city-versus-country-widening-jobs-gulf" target="_blank">regional Australia is not creating jobs</a> in aggregate and unemployment is therefore rising worryingly in many regional centres and net population growth must in turn slow.
One of Australia's leading economic journalists Peter Martin takes aim at another of the great labour market myths in his piece 'Busting Labour Market Myths' in <a href="https://www.theage.com.au/federal-politics/political-opinion/busting-labour-market-myths-why-your-job-is-far-more-secure-than-you-think-20141213-125ggs" target="_blank">The Age</a>: "Of course we'll tell our children that they'll be doing more telework – working from home, cafes, etc. 
"Everyone knows that's true. The last government said it enough while spruiking the NBN. 
"It isn't true - at least not so far.
"Only 5% of us describe home as our main place of work, and nearly all of them are self-employed. 
 "Only around 1.5% of workers for employers describe home as their main place of work, and if anything the proportion has slipped in the past decade.
 "All up, the labour market is changing (fewer of us are employed in manufacturing for instance) but it isn't changing in many of the ways that we think.".
Quite so.
Working from Home has Declined
The short report which Peter Martin is referencing here is the enlightening <a href="https://onlinelibrary.wiley.com/enhanced/doi/10.1111/1467-8462.12085/" target="_blank">Two Decades of Change</a> document, which is well worth a read.
The report reveals some interesting trends, highlighting for example how the southern states have fallen way behind in terms of their economies and labour market growth, with employment growth in Tasmania and now South Australia in particular having tanked and unemployment now rising, trends which have been highlighted here previously.
<img src="https://1.bp.blogspot.com/-hbgxMa94YRQ/VI2aCWTYmkI/AAAAAAAAR48/X1J9YlRNRzw/s1600/sa.jpg">
The Working from Home 'Phenomenon'? On the working from home phenomenon, the Two Decades of Change report is quite conclusive:
"Yet another often-heard claim is that, facilitated by changes and advances in information and communication technology, work is increasingly being undertaken away from conventional workplaces, and more specifically in the homes of workers. 
"However, the available survey evidence provides little support for such a claim. Analysis of data from the HILDA Survey by Wooden and Fok (<a href="https://onlinelibrary.wiley.com/enhanced/doi/10.1111/1467-8462.12085/#aere12085-bib-0022" title="Link to bibliographic citation">2013</a>), for example, shows:
"While taking work home is relatively common (with almost 23% of Australian workers reporting doing at least some paid work at home each week), for relatively few workers (just 5%) could home be described as their main location of work.
"The majority of this small group of home workers is self-employed—only a little over 1% of employees spend the majority of their work hours at home.
"If anything, the incidence of working at home fell over the course of the last decade.
"Such conclusions are broadly consistent with survey data periodically collected by the ABS as part of its Locations of Work Survey (ABS Cat. no. 6275.0). 
"Notably, the incidence of employed persons who report that their home is their main place of employment fell slightly between 2000 and 2008 (from 7.1% to 6.4%)."
This is indeed commensurate with what was concluded by the ABS Locations of Work survey as reported here previously.
In fact, the principal reason given by survey respondents for working from home was that they had become "snowed under" and fallen way behind on their workloads in the their main workplace.
All available <a href="https://petewargent.blogspot.co.uk/2014/07/x" target="_blank">studies</a> and <a href="https://petewargent.blogspot.co.uk/2014/05/rba-on-housing" target="_blank">reports</a> have shown that, quite apart from undertaking a sea-change and heading en masse for the regions, Australia's capital cities are in fact becoming increasingly centrally focused in terms of population growth, dwelling price growth, economic growth and employment growth.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' .
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pwargent-M4siyDbqQY

Mortgage arrears decline to seven year lows... so where are the risks?

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Reserve Bank (RBA) governor Glenn Stevens has “hosed down speculation” of a rate cut, according to an ANZ Research analysis of his latest media comments.
Stevens told The AFR that the problem with the economy is a lack of "animal spirits", rather than an issue with the price of money, and emphasized the importance of providing a steady and predictable monetary policy.
He pointed to the swinging expectation of economists and experts as to where rates would move to and when.
"We have had, a few times over the period of stability that we have already had, at various times some commentators saying they still think rates might go down a bit. That swung to “They will go up”. It swung around a few times," Stevens said.
ANZ Research’s latest bulletin notes that Stevens’ comments have reinforced their view that the "RBA clearly would prefer a substantially lower exchange rate to lower interest rates, and while it hasn’t closed off the possibility of a rate cut, at the moment it seems less than convinced that a lower cash rate would assist the recovery".
They pointed specifically to his comments that a cut in the cash rate “has to remain an open question” and that if the RBA believes it will assist confidence then it may be on the table for consideration in 2015.
Stevens noted that the position of the RBA is to foster confidence by giving people the sense that they can plan ahead. While he noted that not everything is predictable, their aim is to make it as stable as possible.
"If you think that confidence is the thing that is kind of the missing ingredient, then what can we do for confidence? The answer that I came up with is we could be steady and predictable and be clear about that. So that’s what we have sought to do," he said.
The main factor ANZ Research is watching will be the Australian dollar.
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RBA hoses down rate cut speculation: ANZ

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Yesterday, APRA stated that they had sent letters to all authorised deposit taking institutions (ADIs) outlining the steps they intend to take to enforce residential lending practices.
APRA noted that they would be increasing supervisory oversight onto lending.
Here are five comments to note:
<ol>
<li>“Interest rates remain at historically low levels, household leverage remains high, and housing loans represent a large and increasing concentration on many ADI balance sheets. Strong competition in the housing market is also evident, which is accentuating pressure on lending standards. Against this backdrop, housing credit growth has accelerated, with lending to property investors particularly strong; the Reserve Bank of Australia (RBA) has noted that this could be funding additional speculative activity in the market.” </li>
<li>“There are a number of additional regulatory and supervisory tools that APRA can apply to address emerging risks, building on the enhanced monitoring and review of recent years. These include additional supervisory monitoring and oversight, supervisory actions involving Pillar 2 capital requirements for individual ADIs, and higher regulatory capital requirements at a system-wide level. Beyond this, there are also more direct controls such as regulatory limits on lending activities, as introduced in other jurisdictions to manage risks emerging in the housing market.” They do note that they do not propose increases in system-wide capital or to introduce new regulatory limits, but does say they will keep them “under active review”. </li>
<li>Higher risk lending includes, for example, a high proportion of lending at high loan to income ratios (LTI), lending at high loan to valuation ratios (LVRs), lending on an interest-only basis to owner-occupiers for lengthy periods and lending at very long terms. In the current environment, where an ADI is undertaking large volumes of lending in these categories, or increasing this higher risk lending as a proportion of new lending, this will be a trigger for the consideration of supervisory action.” </li>
<li>“Given the currently very strong growth in investor lending, supervisors will be particularly alert to plans for rapid growth in this part of the portfolio. For example, annual investor credit growth materially above a benchmark of 10 per cent will be an important risk indicator that supervisors will take into account when reviewing ADIs’ residential mortgage risk profile and considering supervisory actions. The benchmark is not intended as a hard limit, but ADIs should be mindful that investor loan growth materially above this rate will likely result in a supervisory response.” </li>
<li>“The serviceability buffer assumed by ADIs as part of this assessment accommodates not only future changes in interest rates but also unexpected changes in borrower income and expenses. Practice in setting the serviceability buffer varies across the industry, with some assessments allowing borrowers to take on debt at very high multiples of their income.”</li>
</ol>
APRA notes that a prudent serviceability buffer is at least 2% above the loan product rate, with a minimum floor assessment rate of 7%.
They do suggest that “good practice” is the maintain a buffer and floor rate above these levels rather than operating at the minimum expectation, and that those who do keep to the minimum will more likely face further supervision.
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Five comments from APRA about lending standards

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ASIC will probe into the interest-only loans market as part of a broader review by regulators into home-lending standards.
It will look at the conduct of banks, including the Big Four and non-bank lenders, on compliance with consumer protection laws, including their responsible lending obligations.
The review follows concerns by regulators about higher-risk lending, following strong house price growth in Sydney and Melbourne.
ASIC, APRA, the Reserve Bank of Australia (RBA) and the Treasury are all working together to monitor, assess and respond to risks in the housing market.
Interest-only loans as a percentage of new housing loan approvals by banks reached a new high of 42.5% in the September 2014 quarter.
The ASIC Deputy Chairman Peter Kell said it was critical that lenders are not putting consumers into unsuitable loans that could see them end up with unsustainable levels of debt.
"Compliance with responsible lending laws is a key focus for ASIC," said Kell.
"If our review identifies lenders’ conduct has fallen short, we will take appropriate enforcement action.".
The Australian Prudential Regulation Authority (APRA) also announced it has written to all authorised deposit-taking institutions (ADIs) to set out plans for a heightened level of supervisory oversight on mortgage lending in the period ahead. 
Under interest-only loans, a borrower’s repayment amount will only cover the interest on the loan.
The principal amount borrowed will not reduce unless the borrower chooses to make extra repayments.
Paying interest-only means that a borrower will pay more interest over the term of the loan.
Some borrowers choose interest-only loans to maximise the amount they can borrow, especially if it is for investment purposes.
Loans are usually only interest-only for a set period of time, after which the borrower will either need to increase their repayments to start reducing the principal, or repay the loan in full.
Although interest-only loans can be appropriate in the right circumstances, interest-only loans can raise a number of risks, such as:
<ul>
<li>Whether the borrower can only afford a loan because it is interest-only</li>
<li>Whether the borrower can afford principal and interest repayments at the end of the interest-only period, and</li>
<li>Whether the borrower understands the impact of not making principal and interest repayments.</li>
</ul>
In August 2014, the Federal Court handed down its first decision on the responsible lending obligations: ASIC v The Cash Store (in liquidation).
 The Federal Court’s decision made it clear credit licensees must, at a minimum, inquire about the consumer’s current income and living expenses to comply with the responsible lending obligations. 
In response, in November 2014 ASIC updated Regulatory Guide 209Credit licensing: Responsible lending conduct to incorporate the general findings of the Federal Court on the responsible lending obligations for credit licensees.
ASIC also updated its advisory to make it clear that credit licensees cannot rely solely on benchmark living expense figures rather than taking separate steps to inquire into borrowers’ actual living expenses.
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