<p data-end="587" data-start="368">Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.</p>

<p data-end="778" data-start="589">The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.</p>

<p data-end="907" data-start="780"><a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.</p>

<p data-end="1908" data-start="1678">Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.</p>

<p data-end="2142" data-start="1910">The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.</p>

<p data-end="2142" data-start="1910"><img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" /></p>

<p data-end="2308" data-start="2144">MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.</p>

<p data-end="2648" data-start="2310">"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."</p>

<p data-end="3818" data-start="3664">MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.</p>

<p data-end="4076" data-start="3820">"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.</p>

<p data-end="4375" data-start="4078">"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."</p>

<p data-end="4910" data-start="4743">The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
<p data-end="600" data-start="394">Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.</p>

<p data-end="1357" data-start="1161">It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.</p>

<p data-end="2269" data-start="2047">"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.</p>

<p data-end="2430" data-start="2271">A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.</p>

<p data-end="3400" data-start="3216">The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>


Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

<p>A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.</p>

<p>Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.</p>

<p>Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374005]</p>

<p>The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.</p>

<p>Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.</p>

<p>Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374010]</p>

<p>Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.</p>

<p>The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.</p>

<p>“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374002]</p>

<p>“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”</p>

<p>The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.</p>

<p>[smartcode_project_cta:default project_id=150999]</p>


Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.</p>

<p data-end="717" data-start="537">The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.</p>

<p data-end="918" data-start="719">The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.</p>

<p data-end="1131" data-start="920">PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.</p>

<p data-end="1131" data-start="920"><img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" /></p>

<p data-end="1318" data-start="1133">Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.</p>

<p data-end="1433" data-start="1320">The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" /></p>

<p data-end="2191" data-start="2013">The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.</p>

<p data-end="2365" data-start="2193">PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”</p>

<p data-end="2943" data-start="2777">The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


PDG secures approval for $1.5bn Southbank apartment development, The One

<p>Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.</p>

<p>The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.</p>

<p>That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.</p>

<p>The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.</p>

<p>A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.</p>

<p>&nbsp;</p>

<p>Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.</p>

<p>Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.</p>

<p>While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;</p>

<p>Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.</p>


First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Interest Rates

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<p>According to SMSF Association CEO and managing director Andrea Slattery, the cut in the official interest rate to a new low of 1.5 percent will hurt SMSF trustees who have large cash balances in retirement phase.</p>
<p>“Although this low interest rate environment is cause for concern for some trustees, the Association is, however, greatly heartened by the fact that a current research report shows that those SMSFs in the transition to retirement or pension phases are typically coping “very well”, she said.</p>
<p>“Research by the SMSF Association and the retirement experts Accurium shows that the medium average return of funds in these two phases of transition to retirement and full retirement is 4.2% – a real return of more than 3% after inflation, an excellent result in this volatile investment environment. </p>
<p>“Quite clearly such a real return shows SMSF trustees are getting good advice and are making informed decisions to ensure they are both safeguarding their capital and generating an income.” </p>
<p>Slattery says the research should help dispel the myth that trustees – especially in the retirement phase – are a one-trick pony with their money only in cash or fixed deposits and blue-chip Australian equities.</p>
<p>“The reality is trustees have been able to find ways of diversifying their investment portfolios to generate healthy returns after inflation, especially considering low interest rates and difficult investment markets, highlighting, yet again, the value of sound strategic advice," she said.</p>
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SMSF trustees in retirement phase set to be hurt after official RBA rate cut

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<div>The ABS released its Lending Finance data for May 2015 which showed that low interest rates are encouraging greater borrowing across the economy.</div>
<div> </div>
<div>While total lending was a little lower than in April on a seasonally adjusted basis, over the past year the data has strengthened considerably.</div>
<div> </div>
<div>Owner-occupied housing finance has increased to a record high level, while personal finance borrowing is also now tracking at its highest benchmark on record.</div>
<div> </div>
<div>Total lending finance for the month of $74 billion was an increase of 10% on the prior year figure, sending total finance commitments for the past 12 months surging 11% to $846 billion - the highest ever figure on this survey.</div>
<p><a href="https://1.bp.blogspot.com/-r7zMiNP0hrE/VaMqbW5y3nI/AAAAAAAAW2g/Hv0pU7OKztM/s640/LF3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://1.bp.blogspot.com/-r7zMiNP0hrE/VaMqbW5y3nI/AAAAAAAAW2g/Hv0pU7OKztM/s640/LF3.jpg" width="640" height="282"><br><br><strong><span style="text-decoration: underline;">Sydney property investors running riot</span></strong><br><br></p>
<div>While property investor loans have evidently passed their peak for this cycle in Western Australia and the Northern Territory, elsewhere investor loans are trending upwards.</div>
<div> </div>
<div>Indeed in New South Wales investor lending is exploding off the top of the chart, with the May 2015 result of $6.07 billion again comfortably the greatest ever<em> </em>month of investment lending in any state or territory.</div>
<div> </div>
<div>Summarily, Sydney now has the highest ever level of investment lending in concert with the lowest stock on market levels we have seen. </div>
<div> </div>
<div>Egg on face for many of the property experts once again, though it should be noted here that the market regulator "should" now be targeting Sydney loans with a vengeance in order to dial back this exuberant level of demand.</div>
<p><a href="https://3.bp.blogspot.com/-y4pNm4gMQPI/VaMufvQ20hI/AAAAAAAAW3U/saA0sZZ_hR4/s640/LF1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://3.bp.blogspot.com/-y4pNm4gMQPI/VaMufvQ20hI/AAAAAAAAW3U/saA0sZZ_hR4/s640/LF1.jpg" width="640" height="280"></div>
<p> </p>
<div>Charted below is the raw data for New South Wales, which shows that investor lending has increased by an extraordinary 137% over the three years since May 2012.</div>
<div> </div>
<div>On a rolling annual basis, investor lending has increased by more than 30% over the past year - yet another monster increase.</div>
<p><a href="https://2.bp.blogspot.com/-rtCPwmPXV_w/VaMqbhX32AI/AAAAAAAAW24/QkPXvKGPAiE/s640/LF2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://2.bp.blogspot.com/-rtCPwmPXV_w/VaMqbhX32AI/AAAAAAAAW24/QkPXvKGPAiE/s640/LF2.jpg" width="640" height="272"></div>
<p> </p>
<div>Although not charted here mainly due to laziness, May was also by a whisker the strongest ever month for investment lending in Victoria at $3.27 billion, taking rolling annual lending to $34 billion, a 22 per cent year-on-year increase.</div>
<div> </div>
<div>May was another strong month for Queensland investor lending at $1.73 million. which takes the rolling annual figure 13.3 per cent higher than one year ago.</div>
<div> </div>
<div>It has been a long yet steady recovery for Queensland investors since the financing nadir related to the 2011 floods.</div>
<p><a href="https://1.bp.blogspot.com/-j1D_B7ZhPsI/VaMqcokjPwI/AAAAAAAAW2o/jADYFHRqXGY/s640/LF4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://1.bp.blogspot.com/-j1D_B7ZhPsI/VaMqcokjPwI/AAAAAAAAW2o/jADYFHRqXGY/s640/LF4.jpg" width="640" height="268"></div>
<div class="separator"> </div>
<div>Investor lending was lower in the month of May in South Australia, but nevertheless on a rolling annual basis has moved 11% higher over the past year.</div>
<p><a href="https://2.bp.blogspot.com/-U43UWz-Cr3s/VaMuJcbQtBI/AAAAAAAAW3I/YsmK5om-rqg/s640/SA.jpg" target="_blank">Click to enlarge </a></p>
<div class="separator"><img src="https://2.bp.blogspot.com/-U43UWz-Cr3s/VaMuJcbQtBI/AAAAAAAAW3I/YsmK5om-rqg/s640/SA.jpg" width="640" height="278"></div>
<p> </p>
<div>Investor lending is now declining in Western Australia, albeit fairly moderately, with low borrowing rates sustaining borrowing for property investment at a historically high level.</div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-z_r-c3Tek1w/VaMuJO7v2TI/AAAAAAAAW3E/AhROalONWVw/s640/Wa.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
<div><span style="line-height: 1.3em;"> </span></div>
<div class="separator"><img src="https://2.bp.blogspot.com/-z_r-c3Tek1w/VaMuJO7v2TI/AAAAAAAAW3E/AhROalONWVw/s640/Wa.jpg" width="640" height="278"></div>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">Overall, a strong result which suggests that total lending finance on an annualised basis may be heading towards $900 billion in due course, suggesting that easier monetary policy is taking effect.</div>
<div class="separator"> </div>
<div class="separator">Property investor lending continues to be exceptionally strong, particularly in Sydney and Melbourne.</div>
<div class="separator"> </div>
<div class="separator">And indeed the data suggests that this dynamic is now spreading to Hobart, Brisbane, and to a somewhat lesser extent, Adelaide.</div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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>.</em></p>
</div>
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Sydney property investors running riot: Pete Wargent

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<div>A surprisingly soft inflation result, and one which puts further interest rate cuts right back in the frame, if indeed they ever snuck out of shot.<br><br>
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<div>Headline CPI printed at 0.5% for the June quarter for an annual result of just 1.5%, well beneath the target range of inflation, thereby locking in the weakest run of inflation results we have seen in years.<br><br>Indeed the index numbers show that the headline result was weaker still, and only rounding took the headline figure up to 0.5% for the September quarter.</div>
<div> </div>
<div>The soft result was influenced by the declining price of vegetables (!), telco quipment &amp; services, and perhaps more predictably, automotive fuel. </div>
<div> </div>
<div><a href="/images/2015/10/29/Inflation1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/29/Inflation1.jpg" alt=""></div>
<div> </div>
<div><span>Non tradables or domestic inflation came in at a soft 0.4% for the quarter and 2.6% for the year, suggesting that domestic price pressures are fairly subdued, while tradables inflation remained very soft. </span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/29/Inflation2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/29/Inflation2.jpg" alt=""></span></div>
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<div> </div>
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<span>Despite the Aussie dollar having tanked all the way from above parity against the US dollar to around 71.3 cents after this release, there still seems to be little evidence of inflationary pressure.</span><br><br><span>This is generally viewed as a sign of weakness for the economy, with wages growth sundued and sentiment too weak to see the higher prices of imports to be passed on to consumers.</span><br><br><span>Most significantly of all the underlying measures of inflation - the trimmed mean and weighted median - both came in at just 0.3% for the quarter, for annual prints of  2.1 and 2.2% respectively.</span>
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<div><span><img src="/images/2015/10/29/Inflation3.jpg" alt=""></span></div>
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<div> </div>
<div>
<div>These figures will be seen to add to the case for further interest rate cuts with inflation sinking towards the bottom end of the target range and unemployment remaining above 6%.</div>
<div> </div>
<div>Futures markets are undecided about an interest rate cut on Melbourne Cup Day next week (62% chance), but hav priced in a high probability of the cash rate being dropped once again before the Christmas break.</div>
<div> </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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>.</em></p>
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Veggie price decline influences inflation outcome: Pete Wargent

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<div>Having recently listed on the securities exchange, Australian Finance Group (AFG) now opts to release its aggregate mortgage data on a quarterly basis, having previously released monthly figures.</div>
<div> </div>
<div>The figures for the September 2015 quarter, which are not seasonally adjusted, revealed a +16% year-on-year increase in mortgage volumes.</div>
<div> </div>
<div><a href="/images/2015/10/15/AFG1.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/10/15/AFG1.jpg" alt=""></div>
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<div>
<span>Mortgage volumes have increased by more than +68% over the past three years, which may be partly reflective of changes in market share. </span><br><br><strong><span style="text-decoration: underline;">Average mortgage size soars</span></strong><br><br><div>Significantly the average new mortgage size in Australia has soared further from $433,000 to $471,000 over the past year.</div>
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<div><a href="/images/2015/10/15/AFG2.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/10/15/AFG2.jpg" alt=""></div>
<div> </div>
<div>
<div>Unsurprisingly, the main driver of the gains has been the average size of mortgages sold in New South Wales which has jumped by more than $60,000 over the past year, and has soared from $454,000 to $584,000 over the past three years. </div>
<div> </div>
<div>Over the past year the average mortgage size also increased significantly in Victoria (+$34,000), Queensland (+$24,000), South Australia (+$30,000).</div>
<div> </div>
<div>There were also increases over the last year in Western Australia and the Northern Territory, but these resources states saw declines in their respective average mortgage sizes in Q3 2015.</div>
<div> </div>
<div><a href="/images/2015/10/15/AFG3.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/10/15/AFG3.jpg" alt=""></div>
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<div>
<div><strong><span style="text-decoration: underline;">Investor market share declines</span></strong></div>
<div> </div>
<div>Perhaps the most significant aspect of this release was the very sharp drop in investor market share.</div>
<div> </div>
<div>According to AFG the investor share appears to have stabilised in recent months at around 32 to 33% of the mortgage market.</div>
<div> </div>
<div>Notably investor market share for Q3 2015 of just 33% was well below the 3 year average of 38%.</div>
<div> </div>
<div><a href="/images/2015/10/15/AFG4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/15/AFG4.jpg" alt=""></div>
<div> </div>
<div>
<div class="separator">This once again implies that APRA's advisory speed limit of +10 per cent annualised credit growth in relation to invetsment loans will be comfortably met in due course, and the housing market story going forward will largely be one of to what extent owner-occupier loans pick up the slack.</div>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">Westpac taps the market with raising</span></strong></div>
<div class="separator"> </div>
<div class="separator">This morning Westpac went into a trading halt and announced that it would be tapping investors for a $3.5 billion renounceable entitlement offer in order to bolster its capital position, while noting in a separate announcement to the ASX that it will be whacking 20bps onto its home loan and investment loan rates, effective from November.</div>
<div class="separator"> </div>
<div class="separator">It is widely expected that the other retail banks will follow suit in due course in respect to mortgage rates.</div>
<div class="separator"> </div>
<div class="separator">This move seems likely to be a game changer for cash rate futures markets, with another interest rate cut from the Reserve Bank as soon as next month already considered by some to be an each way bet.</div>
<div class="separator"> </div>
<div class="separator">If Thursday's employment data is weaker than expected then a rate cut in November may become more likely than not.</div>
<div class="separator"> </div>
<div class="separator">AFG noted in its release that many borrowers consider further rate cuts to be increasingly likely, with fixed rate mortgages declining to just 11.3% of total loans processed for the quarter, which is the lowest level for more than three years. </div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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>.</em></p>
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Average mortgage size soars: Pete Wargent

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<div id="post-body-3728627092930340920" class="post-body entry-content">
<div>Measures taken to slow the housing market in 2015 did their job effectively, largely by restricting the amount that people could borrow.</div>
<div> </div>
<div>Although there have been two interest rate cuts since May - a valedictory "double tap" from Governor Stevens, if you will - serviceability calculations continue to be assessed at a more stringent level.</div>
<div> </div>
<div>As a result borrowers can generally borrow little more than was the case before the most recent salvo of easing.</div>
<div> </div>
<div>This was to some extent reflected in the Housing Finance figures for June, released by the ABS today following a troublesome Census night website crash.</div>
<div> </div>
<div>Although the average loan size has been increasing steadily again from $352,200 to $360,100 since February, this figure remains below the peak of $382,300 seen in November last year. </div>
<div> </div>
<div>And it's a similar story for first homebuyer loan sizes. </div>
<br><a href="/images/2016/08/11/A2.jpg" target="_blank">Click to enlarge</a>
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<div class="post-body entry-content">
<img src="/images/2016/08/11/A2.jpg" alt=""><br><br><div>At the state level, the first homebuyer loan sizes figures show the impact of tighter serviceability calculations.</div>
<br><div class="separator"><a href="/images/2016/08/11/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A1.jpg" alt=""></div>
<strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Total finance</span></strong><br><br><div>The net effect of this is that although trend total monthly housing finance has also now been rising again for the past few months - back up to well above $32 billion - the total value of commitments for now remains below the peak of $32.7 billion seen in June last year.</div>
<div> </div>
<div>Investor lending was the main target of the macroprudential crackdown, as you can see in the chart below. </div>
<div> </div>
<div>With the speed of investor credit growth now only about half of the arbitrary 10 per cent "speed limit", investor lending has now been trending up again for the past six months, albeit at a far less frantic pace than seen previously.</div>
<br><div class="separator"><a href="/images/2016/08/11/A3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A3.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">Homebuyers return</span></strong><br><div> </div>
<div>The level of activity of homebuyers in the market has generally been relatively lower than we have seen in previous cycles, in part due to the sheer volume of investors in the Sydney and Melbourne markets since interest rates were dropped.</div>
<div> </div>
<div>However, following the effectively imposed caps on investor lending banks are now targeting the home loan market, and the trend number of monthly owner-occupier commitments has continued to rise to the highest level since June 2009. </div>
<br><div class="separator"><a href="/images/2016/08/11/A4.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A4.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>The number of owner-occupier commitments is trending solidly higher in Queensland, South Australia, Tasmania, and the ACT.</div>
<div> </div>
<div>Homebuyer activity remains high in Sydney and Melbourne, but these markets will also be impacted by serviceability constraints.</div>
<br><a href="/images/2016/08/11/A6.jpg" target="_blank">Click to enlarge</a>
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<div class="post-body entry-content">
<img src="/images/2016/08/11/A6.jpg" alt=""><br><br><div>Indeed, this is reflected in the dampened trend monthly value of owner-occupier commitments in the two most populous states in the chart below.</div>
<div> </div>
<div>The homebuyer trend value of commitments appears to be strongest in Queensland, South Australia, Tasmania, and the ACT.</div>
<br><div class="separator"><a href="/images/2016/08/11/A5.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A5.jpg" alt=""></div>
<div> </div>
<div class="separator">That said there has been a marked resurgence in investor lending in Sydney, sending preliminary auction clearance rates to their highest level of the year, at above 80 per cent.</div>
<div class="separator"><strong><span style="text-decoration: underline;"> </span></strong></div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">Overall, despite lots of alarmist reporting housing finance is tracking both at a historically high level, and is now accelerating again.</div>
<div class="separator"> </div>
<div class="separator">And remember that these figures for June pre-date an interest rate cut delivered in August.</div>
<div> </div>
<div>It's also worth remembering that the underlying demand for mortgages right now is enormous - the only reason lending slowed was because regulators were getting concerned about the sheer wight of demand for borrowing.</div>
<div> </div>
<div>The data seem to be following a remarkably similar trajectory to what we saw in the United Kingdom following its own macroprudential intervention (the so-termed Mortgage Market Review). </div>
<div> </div>
<div>That is the initial shock clonked the market on to the back foot, but as the dust settles lending is on the rise again - just more steadily than it was before.<br><br>Finally, the ABS reported a small increase in first homebuyer activity, but as disclosed by the ABS these data remain incomplete.<br><br>NAB's survey for Q2 2016 showed that first homebuyers accounted for 1 in 3 new home sales in the June quarter, and 29 per cent of established home sales.</div>
<div> </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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>.</em></p>
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Housing finance accelerating again: Pete Wargent

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<p>I've always liked the saying "can't see the forest for the trees".</p>
<p>It appropriately sums up so much of the distorted self-indoctrinated bias of opinion pertaining to real estate in Australia.</p>
<p>The debate has never been so fierce – especially when it comes to the definition of that 'bubble'. I am of the firm belief that it is those who are actual historians of the Australian property markets who are the ones with the greatest ability to call the exact path and outcomes.</p>
<p>If you want to end the 'bubble' debate simply ask the question: "So when do you see this bubble bursting?"</p>
<p>It's always the fastest way to draw the debate to a fast halt. History has shown when you closely analyse the property market machinations through the Reserve Bank of Australia (RBA) – Cash Rate Target interest rate changes only then can we see the significant market changes.</p>
<p>That being when the RBA increases the cash rate twice (not once) we are starting to see a new course being charted. Then it takes another two to four years for the affects to be seen given that is when households start to come out of their fixed mortgage periods into the higher mortgage agreements.</p>
<p>Given we are the best part of at least 12 months away from the first cash rate increase – which should send the alarm bells ringing – then depending on the next increase we won't start seeing any noticeable market price corrections until 2016 to 2019.</p>
<p>We also need to bear in mind that when the cash rate increases so does the exchange rate as that goes up in unison, which is the last thing the RBA wants to see given it's presently trying to get the exchange rate down.</p>
<p>We should consider that the RBA is well down the track to introducing its new macroprudential tools as well as waiting to receive (then implement) the findings from the Murray Financial System Inquiry.</p>
<p>No doubt the RBA would be very much looking forward to tinkering the markets with these tools so that (for the very first time) other than increasing the cash rate  it may just be able to manipulate the markets in a way never seen before. For the first time ever (as many would not be aware) we are witnessing history with these new real estate market initiatives.</p>
<p>Again, history will show whether or not they were effective. However, it will be fascinating to watch the outcomes.</p>
<p>So back to those fools on the hill who following this week's RBA decision to leave the cash rate on hold at 2.50% – they even managed to get that wrong. No it was not a record (as some declared). Even though 14 straight months is getting up there, the actual record is 17, not 16 as some would believe. Furthermore, you can only apply consecutive meetings as the RBA doesn't meet in January.</p>
<p>Having said that, when you go back through the history of the cash rate movements at the RBA we start to see fascinating stories evolve.</p>
<p>I have conducted my research on instances where the cash rate remained on hold for 10 or more consecutive meetings:</p>
<p>The first period of RBA cash rate holds started on 30 July 1993 when the cash rate was moved from 5.25% to 4.75%, where it remained until 27 July 1994 – in total 12 holds. Then on 17 August it was bumped up 1.25% to 5.50%.</p>
<p>The next run of holds, which is the equal record 17 holds, happened on 14 December 1994 when the cash rate increased from 6.50% to 7.50%, where it remained until 3 July 1996.</p>
<p>Then it fell to 7.00%. So we are seeing long holds followed by increases and decreases.</p>
<p>On 30 July 1997 we saw another 16 consecutive holds at 5.00%, to then see it drop to 4.75%.</p>
<p>On 5 June 2002 we saw 16 holds at 4.75%, to then see it increased to 5.25% in November 2003.</p>
<p>On 4 February 2004 we saw thirteen holds at 5.25%. When the cash rate was increased to 5.50% in March 2005, that was followed by another twelve holds that was followed by an increase to 5.75%.</p>
<p>Then on 8 December 2011 we had another ten holds at 4.75%, then saw the rate dropped to 4.25%.</p>
<p>We are now in the current hold pattern after fourteen meetings, so based on history it's anyone's guess what or when the next movement might be. I predict the current rate will be set for the longest period in RBA history as it will go well into the twenty something meetings.</p>
<p>So when you see the arguments mounting that many commentators were disappointed that the RBA hardly mentioned that ''bubble" following this week's decision – history clearly shows that the board members may not be that concerned about that "bubble".</p>
<p>Maybe they are more concerned as to why investors have steered clear of the stock market which, by the way, had a few massive corrections this week – although, wait a minute, nothing much was written about that either.</p>
<p>It all depends on what you are looking at – the forest or the trees?</p>
<p>As to be expected stock levels increased significantly this week – so now we finally get to see firsthand just how strong the markets really are.</p>
<p>Watching these numbers will be telling over the period leading up to Christmas, although I don't believe we will see anything that even resembles that imaginary 'bubble'. Time will tell!</p>
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Want to know when the market will change? Keep an eye on interest rates

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<p><span style="line-height: 1.3em;">What is it about Sydney people that makes them so sensitive to interest rates when no one else in Australia is?</span></p>
<p>If we can believe popular analysis, interest rates cuts are like steroids to Sydney residents. They get all pumped up by them and charge around lifting things that were financially too heavy for them previously.</p>
<p>But the 81% of Australians who live outside Greater Sydney are immune. They’re exposed to the same stimulus but it has no visible effect on them. Curious modern phenomenon.</p>
<p>Anyone with a keen eye for observation and an inquiring mind – the qualities that journalists used to have, back in the day – might wonder why Canberra people, for example, have such a strong immunity to the rates steroid.</p>
<p>It certainly made me wonder, so I checked to make sure they have the same interest rates in the national capital as they have three hours up the road in the NSW capital. And, sure enough, they do.</p>
<p>And guess what else? They have the same interest rates in Melbourne, Brisbane, Perth, Darwin, Adelaide and Hobart as well. </p>
<p>I had assumed rates must be much higher in all those places because, according to the latest figures from cor blimey RP Data, apartment prices are falling in Perth, Darwin, Hobart and Canberra – and have barely moved in Melbourne, Brisbane and Adelaide, whereas they’re up 10% in Sydney.</p>
<p>Here are some of the headlines since the RBA interest rates decision last week:</p>
<ul>
<li>Rate cut adds to Sydney buying frenzy</li>
<li>Rate cut dangerous for property market</li>
<li>Rate cut could destabilize property market</li>
<li>RBA rate cut will put pressure on property market</li>
</ul>
<p>Some of the reaction to the interest rate reduction bordered on the ludicrous. We had a slightly hysterical president of the Real Estate Institute of NSW, Malcolm Gunning, claiming the rate cut meant young people would be forced to leave Sydney. Sam White from Loan Market said the rate cut would make the market unsustainable and unaffordable.</p>
<p>We even had Adelaide pundits claiming the rates decisions would fire up the local property market. Why all those previous rate cuts had failed to achieve that was not explained. </p>
<p>We’ve had almost four years of falling interest rates and none of those previous cuts have generated a boom in Adelaide – or anywhere else in capital city Australia, apart from Sydney - but this latest reduction is going to “fire up” the market, apparently.</p>
<p>So where did this notion that interest rates were the prime factor in residential real estate dynamics originate? Yes, you guessed it – it’s the love child of our under-class of chattering economists.</p>
<p>Watching an economist discuss real estate is like listening to a close friend of mine discuss rugby. She understands that a ball is involved but she’s never sure whether it’s round or oval - or whether you need to kick it over the bar or under it. She is sure about one thing, though - that it doesn’t make a lot of sense and far too many people are obsessed with it.</p>
<p>I recently spoke to a boardroom luncheon in Sydney, attended by 12 or 15 people with “economist” somewhere in their titles and all from big name companies and institutions. What they collectively knew about residential property could be written on the back of a postage stamp in crayon. In the minds of most of them, there’s a national property boom and it’s caused by low interest rates.</p>
<p>They’re the masters of the universe and they know close to nothing.</p>
<p>There’s another thought about this whole obsession with interest rates and the belief they are central to movements in property markets. Investors who are fundamentally driven by interest rate cuts are not thinking clearly. The current level of interest rates is largely irrelevant to sensible decision-making about property investment.</p>
<p>Anyone who borrows now to invest will face dozens of interest rate changes over the life of their loan. The current level of rates is not a core consideration. The core question for investors should be: if rates at some point rise 2 or 3 percentage points above their current levels, can I still afford the repayments?</p>
<p>If you’re charging around like the steroid-induced herd animals in Sydney, you’ve missed that fundamental point.</p>
<p><span>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/"><span>hotspotting.com.au</span></a>. You can <a href="https://mailto:ryder@hotspotting.com.au"><span>email him</span></a> or follow him on <a href="https://twitter.com/hotspotting"><span>Twitter</span></a>.</span></p>
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Sensitive Sydneysiders reel at rates: Terry Ryder

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<p><span>When it comes to the question of who pays the mortgage interest, the answer is that New South Wales and Victoria do: well over half of the national interest payable in fact.</span></p>
<p><a href="/images/2015/11/25/Interest%20Payable.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span> <img src="/images/2015/11/25/Interest%20Payable.jpg" alt=""></span></p>
<div>While this might seem surprising, in fact the share of interest paid by the largest two states has declined over the past two decades.</div>
<div> </div>
<div>The reason for this has been the expansion of both the population and mortgage sizes in Queensland (its share of the mortgage interest pie increasing from 15%to 19%) and Western Australia (its share increasing from 9 to 13%).</div>
<div> </div>
<div>The changes elsewhere have been negligible when viewed from the national level.</div>
<div> </div>
<div>Despite the Australian population having increased by well over 1 million persons (or about 4.7%) over the past three years, total interest payable has declined by nearly 22% thanks to the slashing of interest rates.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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>.</em></p>
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Who pays the interest? Pete Wargent

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<div>The US Federal Reserve is set to lift interest rates for the first time since June 2006.</div>
<div> </div>
<div>The Bureau of Labor Statistics reported that the economy added 211,000 jobs in November, while the October result was revised up from +271,000 to a smashing +298,000, and September also saw a positive revision from +137,000 to +145,000 (for a total of +35,000 revisions).</div>
<div> </div>
<div>After 68 consecutive months of employment gains, the Fed is finally ready to hike interest rates following its December 15-16 meeting. <br><br>
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<div><a href="/images/2015/12/7/BLS1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/7/BLS1.jpg" alt=""></div>
<div> </div>
<div><span>Average hourly earnings have increased by 2.3% over the year, with the economy having gained some 13 million jobs since its nadir.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/12/7/BLs2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/12/7/BLs2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Average monthly employment gains this year have been solid at 210,000, although a bit lower than the 260,000 seen in 2014.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/12/7/BLS3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/12/7/BLS3.jpg" alt=""></span></div>
<div> </div>
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<div><span>The unemployment rate was unchanged at a 7.5 year low of 5%.</span></div>
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<div><span>Fed to hike. It's been a while coming!</span></div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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>.</em></p>
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Fed set for lift off: Pete Wargent

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<div><span>Low interest rates are allowing homeowners to forge ahead on repayments. </span></div>
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<span>From the Reserve Bank: "...<span>two-thirds of borrowing is [now] covered by a repayment buffer of at least one month's worth of required mortgage payments, and for half of this, that buffer is more than one year."</span></span><br><span><span><br></span></span><span><span>One third have at least a 12 month buffer, a remarkable statistic.</span></span>
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<div><span>The RBA also found that across every state "all arrears levels are relatively low", with New South Wales the best placed of all thanks to its solid economic performance. </span></div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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>.</em></p>
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