For the first time, prospective off the plan apartment buyers in Sydney's <a href="https://www.apartments.com.au/developments/homebush-nsw-2140">Homebush</a> can purchase with the confidence of a 10-year defect protection for their new apartment building.

<a href="https://www.apartments.com.au/new-apartments/bridge-road-residences-homebush-3-5-bridge-road-homebush-nsw-2140">Bridge Road Residences</a>, the latest development by <a href="https://www.apartments.com.au/developers/ventus-group">Ventus Group</a>, is the first new apartment complex in the area to offer the highly sought-after 10-year Latent Defects Insurance, provided by Resilience Insurance.

This policy, which applies to all 80 apartments in the new building on Bridge Road, covers homeowners against&nbsp;structural or design defects defects that may arise within the first 10 years after the building's completion. It can only be taken out by the developer or builder of the new development, and not by individual apartment owners.

Half of the apartments in the building have already been quickly snapped up. Buyers have been attracted by the insurance policy, along with the guarantee of a quality build, thanks to the insurance's Technical Inspection Service. This service involves third-party experts visiting the construction site at least once a month to ensure the building is being properly constructed, making defects highly unlikely.

[smartcode_project:default project_id=6989 project_image_fid=2132]

Located on Bridge Road, the development offers a mix of apartment configurations, from studios to three-bedroom apartments.

Apartments have been designed&nbsp;by MX Architects with liveability in mind, featuring open-plan layouts, engineered timber floors, wool-blend carpet in bedrooms, and either ducted or split-system air conditioning depending on configuration.&nbsp;

Many apartments also include north-facing aspects or oversized balconies, enhancing natural light and outdoor usability.

The development includes landscaped communal gardens with a central lawn, shaded seating, and barbecue areas. A rooftop terrace offers views across the city and Sydney Olympic Park. These amenities are designed to provide outdoor spaces for both relaxation and socialising, without increasing maintenance burden.

[smartcode_project:default project_id=6989 project_image_fid=2135]

Bridge Road Residences is less than 10 minutes’ walk from Homebush Station and close to major road links including the M4 and M8.&nbsp;

Residents will have immediate access to Rochester Street’s cafes, grocers, and restaurants, as well as retail and dining hubs at North Strathfield’s Bakehouse Quarter, Strathfield Plaza, and DFO Homebush.&nbsp;

The area is also well-served by schools and tertiary institutions, including Homebush Public School and the University of Sydney.

Construction is being led by <a href="https://www.apartments.com.au/builders/one-way-dc">One Way Development &amp; Construction</a>. They are expecting to complete the build in Q3 2026.

[smartcode_project_cta:default project_id=6989]

Joel Robinson

Bridge Road Residences brings 10-year defects guarantee to Homebush

<a href="https://www.apartments.com.au/developers/romano-property-group">Romano Property Group</a> has appointed AG Construct to deliver their boutique new Fitzroy apartment development, Napier 235.

Half of the apartment in the architecturally-striking block of 14 have already been snapped up.

Located just 150 metres from Brunswick Street, <a href="https://www.apartments.com.au/new-apartments/napier-235-235-napier-street-fitzroy-vic-3065">Napier 235</a> will bring a mix of two and three-bedroom residences to the tightly held inner-city neighbourhood, including a full-floor penthouse and one townhouse.

[smartcode_project:default project_id=144904 project_image_fid=3217]

Designed by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> with landscaping by <a href="https://www.apartments.com.au/landscape-architect/florian-wild">Florian Wild</a>, Napier 235 presents a sculptural, low-rise form that aligns with Fitzroy’s heritage character while introducing contemporary detailing.&nbsp;

Residences are all north-facing and feature large private terraces, with living areas that connect to the outdoors via floor-to-ceiling sliding glass.

Inside, kitchens are anchored by 3.5-metre stone island benches and include walk-in pantries, Miele and Gaggenau appliances, and built-in bars with wine fridges in most apartments.&nbsp;

Customisable floor plans allow buyers to tailor internal layouts to suit their needs.

[smartcode_project:default project_id=144904 project_image_fid=3220]

Sustainability has been prioritised from the outset. Napier 235 ranks in the top five per cent of Victorian developments under current planning policy benchmarks, reflecting efficient energy use and environmentally responsible design.

Napier 235 places residents within walking distance of <a href="https://www.apartments.com.au/developments/fitzroy-vic-3065">Fitzroy</a>’s food and retail precincts, including Marion, Morning Market, and Bentwood Café. Fitzroy Gardens, Carlton Gardens, and tram connections to the CBD are also nearby. Despite its proximity to major amenity, the development sits within a quieter residential pocket.

Pricing for two-bedroom apartments at Napier 235 starts at $1,225,000.

[smartcode_project_cta:default project_id=144904]

Construction to commence at Napier 235 in Fitzroy as Romano appoints builder

A rare new development in Surry Hills is aiming to replace a cluster of underutilised commercial buildings with a contemporary eight mixed-use building just 300 metres from Central Station.&nbsp;

The $27.5 million project is being led by ISL Property Investments Management and will include 35 apartments, some earmarked for affordable housing, alongside street-level retail and basement parking.

The development spans multiple lots between <a href="https://www.apartments.com.au/new-apartments/98-106-kippax-street-surry-hills-nsw-2010">Kippax, Sophia, and Waterloo Streets</a> and will involve substantial demolition of the existing structures on the 780 sqm site.

According to the Urban Design Report prepared by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO</a>, the design has been shaped to reflect the area’s gritty industrial past while contributing to its evolving identity as a high-density urban hub.

“The proposed development is designed to integrate sensitively and intelligently with its immediate surroundings and evolving urban context,” DKO stated. “It mediates between the existing built environment and the area’s future trajectory, ensuring a thoughtful transition”.

<img alt="First look: I.S.L. Property Investments plans eight-storey mixed-use apartments in Surry Hills" data-entity-type="file" data-entity-uuid="db880273-57af-4167-9601-f05fd7b39124" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Surry%20Hills%20isl.png?VersionId=f3Ix9jP4eJ44H69zUcgot_zxBr4rW6gJ" />

The project includes 35 one, two, three-bedroom apartments across the upper levels, with 15 per cent of the total floor area allocated to affordable housing.&nbsp;The dwelling mix is designed to cater to a range of household types, with layouts strategically oriented to maximise solar access and cross ventilation, DKO notes.

Architecturally, the building is anchored by a podium that reinforces the streetscape while referencing the area’s industrial brick fabric. Above this, a lighter tower form is chamfered to reduce visual bulk and improve solar access to the public domain.&nbsp;

“The tower mass is elevated above the podium, visibly distinct yet firmly anchored at the bookend corner of Kippax and Waterloo Streets,” DKO wrote.

The development is also aiming high on sustainability. Features include rooftop photovoltaics, water-efficient landscaping with local species, and a commitment to all-electric infrastructure.&nbsp;

<img alt="First look: I.S.L. Property Investments plans eight-storey mixed-use apartments in Surry Hills" data-entity-type="file" data-entity-uuid="8e1b99eb-6945-48b6-8222-647efe549803" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site_0.png?VersionId=fUWGEn1sGpIMuzQ6KJ5zGQxQTjUoe9gz" />

The project is lodged under the Housing SEPP and seeks approval from the City of Sydney. There have been very few new apartment developments in Surry Hills in recent years. Some of the most notable has been redevelopments of former commercial buildings, as opposed to demolishing buildings.

That's the plan for national developer Time &amp; Place, which has recently submitted their State Significant Development Application for Marlborough House, the redevelopment of the original&nbsp;David Jones department store warehouse and factory building&nbsp;on Marlborough Street. The development will have around 150 warehouse-style apartments.

First look: Rare new apartment project pitched for Sydney's Surry Hills

Award-winning Canberra developer Art Group is approaching the final stages of construction on its newest residential development, Calypso, located on the city-fringe boulevard of Northbourne Avenue in Dickson.

Now 90 per cent complete and tracking toward a 2025 move-in date, <a href="https://www.apartments.com.au/new-apartments/calypso-dickson-330-northbourne-avenue-dickson-act-2602">Calypso</a> will deliver 207 one-, two-, three-bedroom apartments designed for the owner-occupier.

The project has been described as a “vibrant oasis” within the growing Northbourne precinct, with design and amenity focused on enhancing both liveability and connectivity.

[smartcode_project:default project_id=134842 project_image_fid=1205]

<a href="https://www.apartments.com.au/developers/art-group">Art Group</a> has positioned Calypso to meet the growing preference for flexible, lifestyle-oriented urban living. All apartments feature floor-to-ceiling windows, generous internal layouts, and purpose-designed spaces such as study nooks or dedicated home offices in larger configurations.

One-bedroom layouts are designed with oversized bedrooms and dual-access bathrooms for added convenience, while two-bedroom apartments include additional study rooms and expansive kitchens.&nbsp;

The three-bedroom residences further elevate functionality with walk-in pantries, freestanding laundries, and panoramic mountain views from corner apartments.

[smartcode_project:default project_id=134842 project_image_fid=1203]

Beyond private residences, Calypso incorporates a range of shared amenities tailored to modern hybrid work and wellness lifestyles. These include dedicated coworking spaces, a gym with cardio and strength equipment, rooftop gardens, communal EV charging, and landscaped outdoor entertaining areas.

Technology integration is a key feature, with fibre-to-the-unit internet offering speeds up to 1,000 Mbps, instant-access Wi-Fi in shared zones, and an embedded network providing streamlined utilities.&nbsp;

The development also includes energy-efficient inclusions and central staircases designed to promote active living.

[smartcode_project:default project_id=134842 project_image_fid=912]

Situated on Northbourne Avenue, Calypso benefits from immediate access to light rail, placing residents within easy reach of the Canberra CBD.&nbsp;

The development is also walking distance to the <a href="https://www.apartments.com.au/developments/dickson-act-2602">Dickson</a> retail precinct and close to several key education institutions, including the Australian National University, University of Canberra, and Dickson College, as well as&nbsp;North Ainslie Primary School, Lyneham High, and Blue Gum Early Learning Centre.

With demand for inner-north apartments continuing to outpace supply, Calypso’s nearing completion places it among a select few large-scale projects delivering new stock to the area within the next 12 months.

With an exclusive final developer release, and $0 stamp duty available in the ACT, there has never been a better time to look at this unique development.

[smartcode_project_cta:default project_id=134842]

Art Group’s Calypso in Dickson approaches completion

Headland Parade is one of the most premium and tightly held streets in Barrack Point in the Shellharbour region south of Sydney.

Local developer&nbsp;Allowrie snapped up an opportunity to develop four custom-designed townhomes on the exclusive strip, which they recently completed the luxury homes to the design by&nbsp;<a href="https://www.apartments.com.au/architects/ingenuity-home-designs">Ingenuity Home Designs</a>.

[smartcode_project:default project_id=150639 project_image_fid=3556]

From the street, the development at <a href="https://www.apartments.com.au/buildings/12-headland-parade-barrack-point-12-headland-parade-barrack-point-nsw-2528">12 Headland Parade</a>&nbsp;features gabled rooflines, muted coastal palette and landscaped frontages that reflect the enduring character of the area.

Inside, the attention to detail continues across open-plan layouts that flow into private alfresco spaces, with select residences enjoying their own inground concrete swimming pool.

The interiors are defined by their use of thoughtful materials and functional sophistication. 40mm 0% silica stone quartz benchtops, brushed brass tapware, and curved v-groove bathroom cabinetry are paired with Polytec kitchen joinery and Lappato-finished terrazzo tiles to create spaces that feel both premium and relaxed.&nbsp;

[smartcode_project:default project_id=150639 project_image_fid=3550]

Comfort underfoot is achieved through hybrid European oak flooring and extra heavy-duty loop pile carpets in the bedrooms, while ducted reverse-cycle air-conditioning ensures seasonal adaptability.

Each residence includes a garage with epoxy flake flooring, landscaped outdoor areas, and integrated energy-efficient inclusions like 5kW solar photovoltaic systems. These elements reinforce the project’s focus on longevity and liveability, making the homes equally suited to growing families and downsizers alike.

[smartcode_project:default project_id=150639 project_image_fid=3558]

Located 160 metres from Little Lake and 400 metres from Warilla Beach, the address sits within walking distance of the Shellharbour Village café strip, Shellharbour North Beach, and the coastal cycleway.&nbsp;

The Shell Cove Marina precinct is a five-minute drive, and Stockland Shellharbour provides broader retail and medical services nearby. Recreational spaces include Dawes Park, Killalea State Park, and Bass Point.

The four townhomes are move-in ready, and start from $1.25 million.

[smartcode_project_cta:default project_id=150639]

Staff Reporter

12 Headland Parade delivers rare new-build coastal homes to Barrack Point

Home Buying

Deciding whether to rent or buy an apartment in Melbourne can be a tough decision, as both options have their own set of pros and cons.

Here's a closer look at the benefits and drawbacks of both renting and buying an apartment in Melbourne:

<h1>Pros of renting:</h1>

<h2>More flexibility</h2>

Renting an apartment allows you to move more easily and without the burden of selling a property.

[smartcode_project:default project_id=3127 project_image_fid=181270]

<h2>Lower upfront costs</h2>

Renting generally requires a smaller upfront investment than buying, as you don't have to come up with a down payment or closing costs.

<h2>Lower monthly costs</h2>

In some cases, renting can be cheaper than buying on a monthly basis, especially if you're unable to afford a large mortgage payment.

<h2>No maintenance costs</h2>

As a renter, you're not responsible for maintaining the apartment or paying for repairs.

<h1>Cons of renting:</h1>

<h2>Lack of control</h2>

As a renter, you don't have control over the property and may have to deal with landlords who are unresponsive to your needs.

<h2>Limited ability to make changes</h2>

Renters are generally not allowed to make major changes to the property, such as renovations or additions.

<h2>No equity</h2>

When you rent, you're not building equity in the apartment or house you're renting.

<h1>Pros of buying</h1>

<h2>Building equity</h2>

When you buy an apartment, you're building equity in the property as you pay off your mortgage.

[smartcode_project:default project_id=110367 project_image_fid=199209]

This can be a good long-term investment, as the value of the property may increase over time.

<h2>Control</h2>

As a homeowner, you have more control over the property and can make changes and improvements as you see fit.

<h2>Potential tax benefits</h2>

Owning an apartment may offer tax benefits such as the ability to deduct mortgage interest and property taxes from your taxes.

[smartcode_project:default project_id=112971 project_image_fid=198408]

<h1>Cons for buying</h1>

<h2>Higher upfront costs</h2>

Buying an apartment requires a larger upfront investment, as you'll need to come up with a down payment and closing costs.

<h2>Higher monthly costs</h2>

In some cases, buying an apartment may be more expensive on a monthly basis than renting, especially if you have a large mortgage payment.

<h2>Maintenance costs</h2>

As a homeowner, you're responsible for maintaining the apartment and paying for repairs, which can be costly.

<h2>Lack of flexibility</h2>

Buying an apartment may limit your flexibility to move or change living arrangements, as you'll need to sell the property before you can move.

Ultimately, whether to rent or buy an apartment in Melbourne depends on your individual circumstances and financial goals. It's important to carefully consider both options and weigh the pros and cons before making a decision.

There are both pros and cons between buying an apartment and renting one in Victoria's capital city

Michael Bird

The pros and cons of renting vs buying an apartment in Melbourne

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The home buying spending intentions, part of the Commonwealth Bank Household Spending Intentions (HSI) series, saw further gains across February, reaching its highest level since the data series began in 2015.

Both mortgage applications and Google searches were up in February in comparison to the month and year prior.

CBA chief economist Stephen Halmarick said the overall improvement in the HSI data is consistent with other signs that Australia’s economy continued to recover in the early months of 2021.

[smartcode_project:default project_id=3303]

"We continue to expect the home buying market to be a key source of support for the Australian economy in 2021 – driven largely by the very low level of interest rates," Mr Halmarick said.

CBA are continuing with their forecast that property prices will be up eight per cent in 2021 and six per cent in 2022, with house prices expected to be nine per cent higher this year.

Mr Halmarick said Commonwealth Bank now expect the Australian economy will grow by 4.4 per cent in 2021 following the economic growth improvement at the end of 2020 pointing to a V-shaped recovery.

One risk to this outlook is the upcoming expiry of the JobKeeper program, though Mr Halmarick said recent CBA research suggests any effect from removing the labour market support measure is likely to be temporary.

“Our view is that the negative impacts of the end of JobKeeper will be short-lived and that the strength in the labour market, the large savings pool generated throughout 2020 and, as shown by the HSI, the solid momentum in spending and home buying, will see the economy transition successfully through the end of JobKeeper,” he said.
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Both mortgage applications and Google searches were up in February in comparison to the month and year prior.

Commonwealth Bank's home buying spending intentions hit record highs in February

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EXPERT OBSERVER

When the government’s <a href="https://treasury.gov.au/review/retirement-income-review/TOR">retirement incomes review</a> of which I was a part examined superannuation, the age pension and voluntary savings, home ownership had a surprisingly important role.

The home is the largest form of voluntary saving and is far more entwined with super and the pension than might be thought, with threads that travel from homeownership to access to the pension, from homeownership to the size of the pension, and from superannuation to homeownership.

<h2>Homeownership keeps pension costs low</h2>

At present, about 76% of retirees own the homes they live in, about 12% rent and a further 11% either live rent-free with family or are in residential care or another arrangement.

<figure class="align-right zoomable"><a href="https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" sizes=" 600px) 600px, 237px" src="https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" srcset="https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=971&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=971&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=971&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=1220&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=1220&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/374112/original/file-20201210-14-tfvimx.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=1220&amp;fit=crop&amp;dpr=3 2262w"></a>

<figcaption>Retired Australians have been unusually likely to own the homes in which they live.</figcaption></figure>This is an unusually high rate of homeownership by international standards that not only benefits individuals but the public purse.

It lowers age pensioners’ living expenses and lowers the required size of the pension.

At 2.4% of gross domestic product, Australia has one of the lowest-cost age pension schemes in the OECD.

But there are indications that homeownership is on the decline.

People are entering the workforce, marrying, forming households and buying their first home later in life.

Between 1981 and 2016 the average age at which Australians purchased a home climbed from 24 to 33.

As a consequence, the average age at which mortgages were paid out climbed from 52 to 62.

Now, one in every ten retired Australians enters retirement with a mortgage.

<h2>Wealth tied up in homes escapes the assets test</h2>

As wealth tied up in housing is exempt from the age pension assets test, it is for many people a preferred form of retirement saving.

At present, around 15% of age pensioners live in homes valued at more than A$1 million, although these figures partly reflect Sydney and Melbourne property prices which have escalated over recent years.

These retirees are often “asset rich and income poor”, having chosen to store their wealth in an asset that doesn’t pay income.

They do well out of the pension. One fifth of age pension expenditure goes to the wealthiest two fifths of retirees.

<h2>Non-homeowners live poorly</h2>

Non-homeowners, on the other hand, are among those most likely to experience poverty in retirement.

Commonwealth Rent Assistance helps with the rent of those reliant on the pension and other payments and is much more targeted than the pension, with 90% going to the poorest fifth of retirees.

But the indexation of rent assistance payments to the consumer price index instead of rents for more than three decades has eroded their value to the point where they now cover less than half the rental costs of the people who get them.

Boosting rent assistance would help, but it is only part of the solution.

<hr>
Income poverty rates of retirees

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" sizes=" 600px) 600px, 237px" src="https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=263&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=263&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=263&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=331&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=331&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/374098/original/file-20201210-15-u79lct.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=331&amp;fit=crop&amp;dpr=3 2262w"></a>

<figcaption>Retirement Incomes Review, <a class="source" href="https://cdn.theconversation.com/static_files/files/1371/Retirement_Incomes_Review_notes.pdf?1607569573">notes</a></figcaption></figure><hr>
Other parts of the solution include increasing the supply and affordability of housing, creating a market in longer-term rental contracts, and boosting access to public housing, outside the terms of the review.

<h2>Super supports home ownership</h2>

Super gets diverted into financing homeownership in three ways.

First, voluntary contributions can be <a href="https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Scheme/">redrawn</a> by first homebuyers for the purpose of a home deposit, for a sum of up to $15,000 from any one year and up to up to a maximum of $30,000 plus earnings across all years.

<figure class="align-right zoomable"><a href="https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" sizes=" 600px) 600px, 237px" src="https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" srcset="https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=971&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=971&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=971&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=1220&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=1220&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/374121/original/file-20201210-15-3dwmaw.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=1220&amp;fit=crop&amp;dpr=3 2262w"></a>

<figcaption>Super encourages people to borrow.</figcaption></figure>For couples, this can provide up to $60,000 plus earnings to buy a house.

Second, retirees can make a <a href="https://www.ato.gov.au/Individuals/Super/Growing-your-super/Adding-to-your-super/Downsizing-contributions-into-superannuation/">downsizer contribution</a> into their super fund of up to $300,000 per person from the proceeds of selling one home to buy another. Such contributions don’t count towards their super contributions caps.

The third way in which super is financing home ownership is the increasing tendency for people to use their super payouts on retirement to pay out their mortgages.

In addition there is what’s known as the “wealth effect”, a phenomenon seen in contributory pension systems around the world.

Research conducted for the review found that increasing compulsory super balances increase household wealth and provide a degree of <a href="https://cdn.theconversation.com/static_files/files/1372/What_is_the_relationship_between_voluntary_savings_and_changes_to_the_SG_Ummul_Ruthbah_and_Nga_Pham?1607572962">confidence</a> for households to increase debt to invest in property, knowing that superannuation savings can be accessed to extinguish debt in the future and that the residential home is not counted in the age pension assets test.

<hr>
Read more: <a href="https://theconversation.com/what-matters-is-the-home-review-finds-most-retirees-well-off-some-very-badly-off-150465">What matters is the home: review finds most retirees well off, some very badly off</a> 

<hr>
Over a four-year period, it was found that a $1 contribution to compulsory super increased net household wealth by $2.51, through an increase in super wealth of $1.51 plus an increase in housing wealth of $1.21, offset by a 51 cent decline in non-super, non-housing savings.

In each of these ways super makes a contribution to homeownership. The review did not conclude there was a case for allowing further withdrawals from super to enable it to more.

<h2>Homes can contribute to retirement incomes</h2>

For typical homeowner at retirement, home equity represents about two to three times as much of their wealth as does super.

It ought to make accessing the equity in the home through a schemes such as the government’s <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/pension-loans-scheme">Pension Loans Scheme</a> attractive.

As an example, drawing down $5,000 each year against the equity in a $500,000 home would eat into only a quarter of its value by the time retiree reached 92.

Consumer protections around the pension loans scheme and other reverse mortgage products limit loan to value ratios, ensure that retirees have guaranteed occupancy and can’t run up negative equity in their homes.

<h2>It’s time to use them</h2>

These schemes are at last becoming more popular, perhaps in part to the growing proportion of lifetime income tied up in homes, a figure that has grown from about 6% in the mid 1990s to around 16% for homes bought today.

Homes are a critical part of the retirement system. They are not only a place to live, but are a substantial part of householder wealth and should be considered when planning retirement income. Especially for those older Australians who have not had the benefit of higher superannuation contributions over their working lives.

<a href="https://theconversation.com/profiles/deborah-ralston-107436">Deborah Ralston</a>, Professorial fellow, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/home-ownership-and-super-are-far-more-entwined-than-you-might-think-151693">original article</a>.
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The home is the largest form of voluntary saving and is far more entwined with super and the pension than might be thought

Home ownership and super are far more entwined than you might think

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EXPERT OBSERVER
I’ve received an email from someone expressing outrage that I’m (in his mind) encouraging people to buy real estate at a time when everything is on the point of collapse.
He lectured that he and his friends believe doomsday is pending and the smart thing is to do nothing.
I won’t name him to protect the guilty. But I think people like this sad individual are a huge part of the problem.
Here’s why this kind of attitude is both wrong and damaging.
Firstly, he’s reacting to media headlines and not to the reality. He’s not alone but anyone smart enough to read and write should know better than to react to clickbait headlines.
One of the great problems amid the pandemic is that mainstream media does not see itself as part of the solution. Most businesses have a model based on making a living by being useful to consumers. Media in Australia doesn’t exhibit any desire to be helpful to its customers – its business model is to scare the hell out of people every minute of every day. It’s an appalling business model and it explains why so many publications are failing.
Intelligent people see the headlines for what they are – a shallow pitch to induce us to click on things, fed by profile-hungry economists and others who know a sensational negative is a guarantee of free publicity.
The smartest people tune out mainstream media altogether. Idiots take it all literally. They accept nonsense like the mythical September Cliff at face value, because they lack the ability to think independently.
Secondly, he’s a poorly-informed individual who is apparently unaware that around Australia there are local economies which are thriving and people are just getting on with business – and their local property markets are pumping strongly.
A core problem is that so much of our major media emanates from Melbourne and Sydney. Melbourne is a basket case because its Premier and his government mismanaged hotel quarantine and other aspects of the pandemic, while Sydney is struggling in many ways also. Both cities have elements of their property markets where vacancies are high, rents are falling and/or prices are drifting lower.
All of that influences the tone of media coverage. But two-thirds of Australians don’t live in our two biggest cities. Most Australians live in cities and towns largely unaffected by the virus, can go about their business unimpeded and are doing generally okay.
Many local economies are pumping and their property markets are rock solid. The vast majority of locations around Australia have low vacancies and strong rental markets. Buyers are facing strong competition and prices are rising.
Canberra has recorded house price rises in all of the past five months, according to CoreLogic figures, and Adelaide has risen in four of the past five months. Most regional jurisdictions have shown similar strength over the period from March to July.
Of the nation’s 15 market jurisdictions (eight capital cities and seven regional markets), 11 have house prices higher than they were at the start of the year.
If the forecasts of most economists in February-March were correct, prices would have plummeted, collapsed, nosedived and plunged (usually the language beloved by many journalists) everywhere by now.
Thirdly, Australia needs people to get off the fence and take action. It needs people to spend and it needs businesses to move forward with hope in their hearts. That’s what all those government stimulus packages are designed to encourage.
My sense is that most are doing so. I have conversations (phone, zoom, email, text messages) every day with people all over Australia and the great majority of them are bullish, busy and getting on with business. Even Melbourne people are pushing ahead as best they can in the circumstances.
Real estate markets are ticking over and people who service those markets are making money. It’s rare to encounter businesses with a negative mindset.
Fourthly, I believe the future belongs to the people who see this as a time of opportunity.
For businesses, it’s a time to innovate and find ways to do things better. In Melbourne, real estate agencies are finding ways to function while in lockdown and the early figures suggest an auction clearance rate above 70% in the latest weekend.
For first-home buyers, there’s never been a better time to take action. Interest rates are ridiculously low, lenders are competing for their business, and there has never been so much government assistance available. Some are sitting back and whinging that it’s all too hard but large numbers of young Australians are taking advantage of a never-to-be-repeated opportunity. All power to them.
For investors, there are wonderful opportunities to buy well in locations with good prospects for long term growth.
And the most important words in that sentence are “long term”. Those who understand the fundamentals of real estate investment appreciate that short-term scenarios like the pandemic impact are largely irrelevant in the overall scheme of things.
There are, of course, those sorry individuals for whom the glass is half empty. And there are some for whom the glass is completely empty.
I would say to them: You have the right to wallow in misery if that’s your preference, but don’t waste my time with your doomsday philosophy. I’m too busy getting on with it. 
Terry Ryder is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
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terryryder-YECXbqmri2

Never been a better time for first-home buyers to take action: Hotspotting’s Terry Ryder

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The latest monthly data from the Commonwealth Bank Household Spending Intentions (HSI) Series indicates that home buying spending intentions are running at a record rate. 
CBA Chief Economist Michael Blythe said, "there are some early signs of a ‘wealth effect’ from the housing market supporting spending on motor vehicles, albeit from a very low level, as well as travel and entertainment."
This means the pick-up in dwelling prices in the second half of 2019 will continue into the first half of this year, and the residential construction downturn should be approaching bottom.
“Past cycles show that leading indicators like building approvals turn about three month after home buying intentions start to lift. A bottoming in the construction cycle would remove a major growth drag on the economy, and also helps retailing," Mr Blythe said.
Noting that retail HSI remained low, Mr Blythe commented, “the flat trend in the retail HSI remains a disappointing outcome relative to the stimulus applied via interest rate cuts, tax rebates and the upturn in dwelling prices. The zig-zag pattern for the retail HSI indicates that the ‘Black Friday’ event brought forward spending from December into November without necessarily boosting spending overall."
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j.ballantyne1990-6AQqhLzZaK

Home buying intentions have reached a record high: CBA

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One of the hardest quests in property is to time your home sale at the market peak, to sit out, and to then buy back at the very bottom.
As we never really know what is around the corner, it is only some time after that the so-called peak and bottom can be gleaned.
Even then because there are so many separate cycles, it is not really possible to say there is just the one peak or bottom.
Buying back into a depressed real estate market, having determined it as a good time to buy, rather than evidence of ongoing doom, is not for everyone.
Waiting for the perfect bottom timing may see you never make the return acquisition and miss out altogether. 
And the best time to buy differs for everyone.
Of course, this is not going to stop some boasting of selling at the top of the Sydney market - around late 2016 early 2017 - and buying back at the bottom.
Good luck to them, because it is a tricky occurrence, thwart with risks at both ends of the deal.
Buying property is the biggest financial decision in most lifetimes, and there is stress involved, regardless of when or how often you buy.
Battling your own emotions could be hard, and then telling family and friends that you’re intent on pulling off a property masterstoke, could see pride and ego cloud your judgment.
For most property buyers, it is the norm to simply buy and sell in the same market which does offer some price comfort, especially for upsizers.
First home buyers get a greater shot at buying better too. 
Sydney is at a stage in its cycle where many are wondering if the property market is close to bottoming out, although the autumn market is marked by uncertainty, caution and a reluctance to commit.
The rate of the price fall is in decline, according to CoreLogic, and Sydney has also seen the strongest capital city auction clearance rate.
The overall market direction is set to be interest rate driven with other contributing factors including levels of consumer and business confidence, the state of the share market, stability in national and global economic conditions, along with government policy.
I'd suggest these are more unknown than usual.
The only way we will know the market has bottomed is in hindsight – and you'll have likely missed it by the time the data driven headlines advise when the bottom was.
Instead of trying to do what is almost impossible, the better strategy is to get educated about the markets.
Look out for minor increases in both buyer interest and transaction activity.
The tell-tale signs the market is about to turn a corner include well-priced properties starting to sell soon after their listing.
There will be multiple offers occurring on well-priced properties.
Some auction properties will be selling surprisingly above reserve.
A shortage of stock for sale across the suburb could be occurring with time on the market dropping.
Of course even if the market has bottomed there is no guarantee we will see any noteworthy increase in values any time soon.
The values might sit there for some years, as it did following the bottom after the 2003 boom.
But the successful property purchaser knows how to create wealth at any point in a cycle while others do poorly even in good times.
This article first appeared in The Daily Telegraph. 
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jchancellor-FAypfDUnLy

Buying at the bottom sounds great, but educating yourself about the market is ever better

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Television personality Shelley Craft has appeared in a video series from ASIC to help consumers make better decisions when buying a home.
The five videos feature tips on the key decisions involved with a buying a home including:
<ul>
<li>How to get a home loan;  </li>
<li>Working out how much you can afford with a mortgage;</li>
<li>Saving to buy a home;  </li>
<li>Understanding the hidden costs of buying a home and;</li>
<li>Being a guarantor for a home loan.</li>
</ul>
Peter Kell, ASIC's Deputy Chairman said for many people, buying a home is likely to be their biggest investment.
"We encourage home buyers to take the time to understand their individual financial position and be aware of what they are committing to with a home loan. And it is always a good idea to shop around for the best deal', he said.
"It can be challenging to build a home deposit, a good place to start is to create a budget to understand how much you can comfortably afford to save, borrow and repay.
"ASIC's MoneySmart offers a range of useful calculators and resources, including the savings goals and mortgage calculators, to help Australians take control of their money and reach their savings goals.
Shelley Craft said buying a home is full of excitement but it can also be stressful, especially the financial aspects.
"it's important to take your time, consider all your options and be sure to ask lots of questions, so you understand what you're signing up for," she said.
Don't rely on just one source when you're shopping around for a home loan because saving even half a percent on the interest rate can save you thousands of dollars over tim"', added Ms Craft.
To see ASIC's financial tips for home buyers visit <a href="https://goo.gl/pWsabK" target="_blank">ASIC's MoneySmart website</a>.
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jonathanchancellor-7SQnKwU6yx

Television's Shelley Craft hosts MoneySmart tips for home buyers

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<img src="/images/2015/11/NEW_RAMS_LOGO.jpg" alt="">
As a first home buyer, you may be eligible to receive a grant or stamp duty concession to help with your property purchase.
Each state and territory has its own scheme and the offers, qualification criteria and processes for applying vary accordingly.  
In the ACT, for example, the territory government offers $12,500 to owners whose first buy is a newly built or a substantially renovated property worth up to $750,000. 
In Western Australia, grants of up to $10,000 are available to first home buyers purchasing or building a new home. 
Check with the finance or revenue office in your state or territory for more details.
 
<table cellspacing="0" cellpadding="0"><tbody>
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Australian Capital Territory
</td>
<td valign="middle">
 
<a href="https://www.revenue.act.gov.au/" target="_blank">www.revenue.act.gov.au</a>
 
</td>
</tr>
<tr>
<td valign="middle">
New South Wales
</td>
<td valign="middle">
 
<a href="https://www.osr.nsw.gov.au/" target="_blank">www.osr.nsw.gov.au</a>
 
</td>
</tr>
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<td valign="middle">
Northern Territory
</td>
<td valign="middle">
 
<a href="https://www.revenue.nt.gov.au/" target="_blank">www.revenue.nt.gov.au</a>
 
</td>
</tr>
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<td valign="middle">
Queensland
</td>
<td valign="middle">
 
<a href="https://www.osr.qld.gov.au/" target="_blank">www.osr.qld.gov.au</a>
 
</td>
</tr>
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<td valign="middle">
South Australia
</td>
<td valign="middle">
 
<a href="https://www.revenuesa.sa.gov.au/" target="_blank">www.revenuesa.sa.gov.au</a>
 
</td>
</tr>
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<td valign="middle">
Tasmania
</td>
<td valign="middle">
 
<a href="https://www.sro.tas.gov.au/" target="_blank">www.sro.tas.gov.au</a>
 
</td>
</tr>
<tr>
<td valign="middle">
Victoria
</td>
<td valign="middle">
 
<a href="https://www.sro.vic.gov.au/" target="_blank">www.sro.vic.gov.au</a>
 
</td>
</tr>
<tr>
<td valign="middle">
Western Australia
</td>
<td valign="middle">
 
<a href="https://www.osr.wa.gov.au/" target="_blank">www.osr.wa.gov.au</a>
 
</td>
</tr>
</tbody></table>
 
HOW TO APPLY
You can lodge an application for most grants through your mortgage lender or directly with the relevant government office. 
You’ll need to fill in an application form and provide proof of your identity, address and details about the property purchase. The exact documents you’ll need will depend on the property’s location and your circumstances, such as whether you’re buying a newly completed home or building yourself. 
When the grant is paid depends on the type of purchase and whether you applied through a lender or directly. For off-the-plan purchases in NSW, for instance, payment is made at settlement if you applied through your lender, or within 15 working days of lodgement after the transaction has completed if you applied directly. 
To meet the conditions of most first home owner grants, you (or another grant applicant) will have to live in the property as your primary home for at least 12 months within a year of settlement or completion. If you move out too soon you’ll have to repay the grant. 
Quick tip: Check with your state or territory finance or revenue office for details on what assistance may be available to you.
 
TO FIND OUT HOW RAMS CAN HELP EASE YOU THROUGH THE PROCESS, GET IN TOUCH WITH YOUR LOCAL RAMS HOME LOAN EXPERT OR DROP IN FOR YOUR <a href="https://ad.doubleclick.net/ddm/clk/297184293;124283199;t" target="_blank">FREE FIRST HOME BUYERS’ GUIDE</a>.
For more great property advice and tips on buying your first home from RAMS subscribe to <a href="https://ad.doubleclick.net/ddm/clk/297184408;124284900;i" target="_blank">The Great Australian Dream property series</a>.
For your free Property Observer eBook from RAMS, 12 tips for first-time buyers, covering everything you need to know when it comes to purchasing property, click here.
Disclaimer: Information in this material is general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.
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