&nbsp;

A local Australian has spent a Lower North Shore record $15.1 million at <a href="https://www.apartments.com.au/new-apartments/elevate-hume-place-crows-nest-25-hume-street-crows-nest-nsw-2065">Elevate Hume Place</a>, the new TOD above the recently opened Crows Nest Metro Station.

The buyer amalgamated a penthouse and sub-penthouse to create the triplex apartment that will have five bedrooms, five bathrooms, a private rooftop pool, expansive terrace, and panoramic views of Sydney Harbour and skyline. The building is being created by burgeoning developer Third.i, alongside joint venture partner Phoenix Property Investors.

The buyer was drawn to Elevate’s unrivalled connectivity, situated directly above the&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a> Metro Station, and the vibrant lifestyle precinct that surrounds it. The Metro connects to the CBD in just seven minutes, and Chatswood in four.

[smartcode_project:default project_id=142550 project_image_fid=309367]

Designed by internationally acclaimed architects <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, Elevate draws inspiration from the ancient blue gum forests native to the area. The building is a Net Zero development, created in consultation with Indigenous communities and exceeding sustainability benchmarks. Interiors feature chevron-engineered timber flooring, natural stone benchtops, and premium Sub-Zero Wolf appliances, delivering timeless elegance and next-level comfort.

The exchange of the $15.1 million apartment, follows a recent $5 million sale, and over $30 million currently in expressions of interests. Interest in Elevate’s penthouse stock has surged, reflecting a strong appetite for ultra-luxury residences that combine design excellence with unmatched connectivity.

[smartcode_project:default project_id=142550 project_image_fid=309369]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group.&nbsp;

“These recent sales are a testament to the vision behind Elevate. It’s not just about luxury finishes or panoramic views, it’s about creating homes that are deeply connected to the city and the community. Buyers are responding to that. They want to live somewhere that offers more than just a postcode, they want culture, convenience, and long-term value. Elevate delivers all of that, and more.”

[smartcode_project:default project_id=142550 project_image_fid=297878]

As part of the Hume Place precinct, Elevate is transforming Crows Nest into Sydney’s most dynamic urban village. Elevate’s unique position directly above the metro, combined with its curated amenity offering, has made it a magnet for buyers seeking a future-proof investment and a vibrant urban lifestyle.

The next release at Elevate is expected later this year.

[smartcode_project_cta:default project_id=142550]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group


Joel Robinson

Third.i & PPI set Lower North Shore apartment record with $15.1m sale at Elevate Hume Place penthouse amalgamation

Sydney developer Deicorp is set to officially open its <a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill-nsw-2154">Showground Village</a> precinct in Castle Hill.

NSW Premier Chris Minns will attend the opening on Sunday August 31, alongside&nbsp;Minister for Planning and Public Spaces Paul Scully, The Hills Shire Council Mayor Dr Michelle Byrne, Landcom CEO Alex Wendler, and Deicorp Founder Fouad Deiri.

Located just moments from Hills Showground Metro Station, the centre spans 9,500 sqm across four levels and features 26 specialty retailers as well as a 1,400 sqm public plaza, creating a new community meeting point for shopping, dining, fitness, and everyday convenience.&nbsp;

Showground Village forms part of the Hills Showground Station Precinct, an urban renewal initiative led by Landcom and Sydney Metro that will provide for around 2,300 new jobs over the next 20 years and around 9,000 new homes.&nbsp;

Deicorp was recently approved for another new development next door to Showground Village.

The new five residential buildings in the East Showgrounds Precinct, will see another 873 dwellings delivered, as well as&nbsp;3,500 sqm of open public space in the form of landscaped courtyards, a public park and communal outdoor recreational space including a playground, barbeque area, and outdoor seating.

“This approval will allow us to start construction on a range of beautifully designed, conveniently located apartments and create another vibrant, walkable and well-connected community,” said&nbsp;<a href="https://www.apartments.com.au/developers/deicorp" target="">Deicorp</a>&nbsp;Founder Fouad Deiri.

“These new homes will provide their residents with a seamless connection to jobs and services along Metro North West, and the new&nbsp;<a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill" target="">Hills Showground Village</a>&nbsp;retail precinct currently under construction."

Deicorp has several thousand apartments in planning and under construction across Sydney, from Zetland and Five Dock to Crows Nest and Macquarie Park.

[smartcode_project_cta:default project_id=133881]

Deicorp, NSW Premier officially open Showground Village, new retail and hospitality hub in Castle Hill

ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

Loan Application

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EXPERT OBSERVER
Ask a homeowner how long it took them to fill out their home loan or refinancing applications and, chances are, you’ll get an exasperated “12 hours” as a response – even when the reality is more like two hours.      
The way Australian consumers interact with the property market is shifting, with savvy consumers looking for new ways to get on and climb up the property ladder. But one thing that never seems to change is the ‘grudge’ element of the application process, or the anxiety that a home loan can bestow on a household.
Navigating the shifting lending landscape
Housing affordability is a top concern for most Australians, second only to cost of living and health and ageing. Three quarters (75%) of consumers say home ownership feels more difficult than 10 years ago, and 59% expect it to be even more difficult in another 10 years.
This concern is understandable in the face of harsher scrutiny of financial liabilities, more stringent income and expenditure requirements and stricter credit criteria from banks and lenders. And the anxiety of buying or refinancing doesn’t end when homeowners get their loan approved – consumers are bombarded everyday with so many offers, deals and financial life hacks that it’s almost impossible for them to be sure they’re on the best rate.
As the dreams of owning, renovating or upsizing a home become more challenging, consumers are looking to looking for alternative financial partners, who are keeping in step with the shifting lending landscape and offering innovative new products, more flexibility and competitive rates. 
These partners are increasingly non-bank lenders (online lenders, neobanks and credit unions) with better fees, lower rates and a more personalised service compared to established mortgage lenders, who are failing to keep up with changing consumer needs.
 How are customers forging the future of home ownership?
The reality is, everyday families have always been underserviced – becauseof their geographical location, not having the levels of wealth that demand personal attention, or simply because their broker or lender doesn’t contact them regularly enough. Unfortunately for this group of consumers, while they’ve been largely ignored by their banks and lenders, they’ve also been wasting a collective $4bn a year on unnecessary home loan interest payments.
The only way to level the playing field is for the consumer to take back control. Consumers who have stayed on the same loan for years are being hardest hit by the ‘loyalty tax’, while new or more proactive customers are offered more attractive loans. This group would greatly benefit from refinancing – but most people don’t have the time, knowledge or energy to monitor the markets every day to make sure they’re still getting the best deal.
This is where technology comes into play. The advent of fintech has not only started levelling the playing field, it’s also made homeowners more aware of what they’re missing out on. Slowly but surely, uno is seeing consumers trying to take a more active role, refinancing more often and trying to counteract their financial anxiety.
This is a huge task for consumers to take on alone. Luckily, they don’t have to. uno’s loanScore tool, for example, gives consumers free access to the same kind of service a personal banker would provide – assessing their loans in real time, letting them know where they stand and making it easier to act when they’re ready. Essentially removing the anxiety of not knowing whether you’re on the right deal, for the entire life of the loan.
For established players, ignoring the changing attitudes and behaviours of consumers won’t remain an option for long. For new entrants, opportunities abound.  
Anthony Justice is the CEO of <a href="https://loanscore.unohomeloans.com.au/" target="_blank">uno Home Loans</a>.
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jrobinson-rf4aSBido9

Levelling the home loan playing field: Uno Home Loans

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GUEST OBSERVER
How truthful are we when it comes to negotiating loans in Australia?
With increasing pressure on the housing market, some of us might be tempted to stretch the truth to secure a mortgage on our dream property - but research shows that this practice can have serious repercussions.
Recent news reports have alerted borrowers to the dangers of “liar loans”, based on the findings of a new UBS research study. A liar loan is a no-documentation loan that is approved on the basis of unverified and possibly false information about income, assets or capacity to repay.
In the United States, where many loan applications have been approved without any information on the borrower’s income and assets - these liar loans have been implicated as one of the reasons for the global financial crisis.
Should we be worried in Australia?
The UBS study found that a third of Australian mortgage borrowers reported being “not factual or accurate” in their mortgage applications. Being “not accurate” is not the same thing as being a “liar”. However, we need to be aware and pro-active to avoid poor standards and practices.
They further estimate that there is roughly US$500 billion (A$657.95 billion) worth of factually inaccurate mortgages on banks’ books in Australia. This is worrying, because it could mean that borrowers are taking on bigger debts than they can actually afford, falling into financial stress or even losing their homes.
The Australian situation
In Australia, when borrowers apply for a mortgage they need to provide documentation that verifies their employment history, creditworthiness, and overall financial situation. Borrowers are required to provide a payslip or most recent tax returns, and show that they have been employed in the same job for at least 12 months.
Other documentation may include: credit card and bank statements; sales contract; confirmation of rental income if purchasing an investment property; and more. The mortgage originator may perform credit checks and bankruptcy or default searches.
Some mortgage borrowers may not be required to provide much documentation if they are existing clients of the bank and already have a strong credit history.
In my research I found that 88.8% of mortgage applicants were existing customers of the bank where they apply for a mortgage, and had been so for 9.3 years on average. But low documentation loans exist for self-employed borrowers.
Where accuracy of mortgage applications becomes difficult to determine is when estimating the expenses of the household. Mortgage applicants are asked about their monthly expenses to assess whether they can service the debt without major stress. Here, applicants may be “mostly factual and accurate” or even “partially accurate” when trying to calculate their monthly expenses. After all, how many people actually keep accurate and up-to-date spreadsheets of all their expenses?
Debts outstanding with other financial institutions or family and friends may also be misreported. In addition, mortgage lenders who receive commissions linked to loan size have incentives to overestimate borrower’s incomes and underestimate expenses.
Australian version of liar loans?
These arguments do not suggest that there is no “lying” or “truth hiding” in mortgage applications in Australia, but that it may not be comparable to the trend of “liar loans” seen in the US.
More importantly, banks do not rely only on their clients’ word. Banks estimate monthly expenses and uncommitted income for their clients based on borrower characteristics and solid financial records.
Data from previous research reveals that banks estimate on average A$1,637 more on monthly expenses than applicants report. Based on the bank’s calculations, housing investors underestimate their monthly expenses by A$1,932 on average, while owner-occupiers underestimate by A$1,560 on average.
Similarly, mortgage applicants report their monthly uncommitted income to be on average A$702.5 more than what the bank estimates it to be. Housing investors only overestimate their monthly uncommitted income by A$174 on average, while owner-occupiers overestimate by A$840 on average.
Due diligence required from both banks and borrowers
Research finds that mortgage features (for example fixed or adjustable rates, maturity, loan-to-value ratio, and so on) help borrowers select mortgage products that are affordable and safer for them, with the guidance of mortgage lenders and brokers.
The research further finds that lenders should make sure that borrowers have the financial capacity to repay their loans out of income or by selling assets under plausible conditions, and not by relying on the value of the collateral.
Mortgage delinquency and default may rise due to excessive risk taking in mortgage lending combined with deteriorating economic conditions; or due to falling income and rising unemployment during a housing downturn. This later case is more likely the potential threat in the Australian current environment.
The Australian Prudential Regulatory Authority (APRA) and the Reserve Bank of Australia (RBA) perform stress tests to check the financial system’s resilience. Along with APRA’s macro- and micro-prudential regulations, some lenders are introducing higher requirements and credit restrictions on potential borrowers.
These include obtaining more information on the clients, which helps assess credit and default risks and helps design and target financial products to specific type of borrowers. There is however risk of mortgage discrimination.
More careful monitoring needed
Mortgage risks often relate to mismatches between the products used by households and their financial capabilities and ability to bear risks. For that reason, mortgage product characteristics should be monitored carefully both by banks and borrowers.
The Organisation for Economic Co-operation and Development (OECD) suggests that financial authorities should make sure lending standards are sound, both in the banking and non-banking sectors. It is important that banks do not face incentives encouraging excessive risk taking.
<img src="https://counter.theconversation.com/content/87073/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Requiring more transparency, reinforcing consumer protection and financial education encourages sound lending and borrowing practices.
Maria Yanotti, Lecturer of Economics and Finance Tasmanian School of Business &amp; Economics, University of Tasmania.
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/how-liar-loans-undermine-sound-lending-practices-87073" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

How 'liar loans' undermine sound lending practices: Maria Yanotti

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National Australia Bank is tightening its rules for home loan applicants, with photo IDs and supporting documents in response to more regulatory scrutiny of lending practices by banks.
Mortgage brokers will be required to provide updated photographs for all existing NAB customers who take out a new mortgage with the bank. 
The lender will also need to provide a physical or scanned copy of a certified photograph, such as a driver’s licence, or a passport.
The bank will also require consent forms from the borrower, any guarantors, employers and the broker, according to The Australian Financial Review.
The new identity check rules are as a result of polices being rolled out by the Australian Registers National Electronic Conveyancing Council as it tries to tackle online fraud.
The rules are even tougher for interest-only borrowers as they will be asked questions about whether that type of loan is suitable for their needs, or whether a principal and interest might be better.
For principal and interest only borrowers, questions range from whether they are taking out the loan as owner-occupiers, or investors, and how they might cope with temporary income reduction, or a large expense item.
Interest-only borrowers will also need to disclose whether they will require additional bridging finance.
"It will ensure customers take out interest-only lending in the right circumstances, which is suitable for their needs," according to a bank memo cited by the AFR.
The bank had increased rates for mortgage holders making interest-only repayments in June, following other major banks.
NAB is also tightening credit policies, such as verification of bonus income and more closely scrutinising any regular deductions from PAYG income, such as superannuation salary sacrifice, in response to tougher regulatory requirements.
Commissions can be considered when it regularly tops up a base salary; or where it is consistent and regular amounts for a minimum of six months.
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jonathanchancellor-7SQnKwU6yx

NAB rolls out stricter rules on ID checks and credit history for home loan applications

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Renovation loan applications have surged over the past six months, highlighting the dilemma of housing affordability, according to home loan lender ME.
Applications for cosmetic loans rose 48% while structural loan requests grew 25% between January and June.
The average amount borrowers requested for structural-related loans such as new builds was $400,000.
For cosmetic-related loans such as kitchen and bathroom renovations, the magic number was $40,000, it said.
ABS figures also confirm renovation lending has reached a new seven-year high:
<a href="https://www.propertyobserver.com.au/images/2017/08/24/ME.jpg" target="_blank">Click to enlarge</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/24/ME.jpg" alt="">
Even CommSec chief economist Craig James said last month that in trend terms, loans for alterations and additions of homes (renovations) hit 7-year highs. 
ME Head of Home Loans, Patrick Nolan said the trend towards renovation funding could be related to the high cost of housing.
“While many homeowners are still relocating, it is clear many are choosing to stay put to avoid the high house prices, and expenses such as stamp duty,” he said.
A majority of ME customers are using equity in their home to fund their renovations.
“Home equity is what’s left over when you subtract your home loan from your property’s current market value,” said Nolan.
“If you’ve owned your home for a number of years it’s likely you’ve racked up some impressive gains in home equity.”
Sydney property owners have the most equity in their homes, an average of $443,900 per property, compared to $276,845 in Melbourne and $203,813 in Canberra.
“If you’re ahead with loan repayments, you may be able to use redraw to dip into your equity,” adds Nolan.
“It’s a simple option but you are limited to the value of those additional repayments. Having a loan with an offset account can be an easier way to access equity.”
According to Nolan, renovation is a smart idea to use the equity in one’s home as it typically adds value to the property.
“In addition, quality home improvements can add to your lifestyle and save on the cost and hassle of relocating to a new home.”
He said it was a good idea to check your suburb before spending a bomb on a makeover.
“To avoid spending more on the renovation than the value it adds to your home, consider the market in your area to be sure your improvements will fit in. Adding a fourth bedroom for instance, can make sense if you live in a family-friendly suburb, less so if you’re in an area popular with young singles.
“Next, put your hard earned cash to work where it will deliver the greatest benefit. High quality kitchen and bathroom renovations almost always add value to a property because they have broad appeal. The same can’t be said of outdoor spas or swimming pools, which can be high maintenance and don’t always deliver a fiscal return.”
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ME bank sees spike in renovation applications

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<img src="/images/2015/07/21/Holdencapital_banner.jpg" alt="" width="788" height="166">
 
SPONSORED POST
“A clear and concise marketing plan that will deliver the projected return”
Sounds simple…. yet we see so few doing it well and most don’t do it at all! For the most part, the key elements of a loan application are well understood by most developers and don’t vary much. Fundamentally they comprise: 
<ul>
<li>
Your financial position and credit worthiness: these are what they are and you can’t gild the lily trying to make them appear better than they are (although some try and fail);</li>
<li>
Gross realisation values and project expenses: completed product prices, land value and associated build costs are all fairly defined values. They will be determined by the market (via pre-sales and tenders on the build job) and certified by the relevant market experts (valuers and QS/engineers);</li>
<li>
The project team and past experience: again, these are relatively pre-defined components of your finance application and while you can enhance them with the introduction of appropriate expertise and testimonials, for the most part the key components have been locked in by the time the application is submitted;</li>
<li>
The capital structure and project feasibility: the combination of debt, junior debt and equity is generally driven by how much equity you have or choose to contribute to the transaction, and the project feasibility draws on the known elements of costs and end values and the time required to undertake the process. While many try and rush this part of the process, the one thing you can’t buy is time, but if you understand the market you are operating in, you can use it to your advantage!</li>
</ul>
As lenders/investors contemplating financing and/or investing in your next project, we would argue that the key element most often missing from applications we see, and the one that you should arguably have the most influence over, is explaining to us how and to whom you are going to sell the product. 
And it is not just your ability to sell the first 60% of the project in order to repay our funds that is critical, but how you will sell the last unit of stock, which represents your profit because that is what will convince us that you fully understand the deal you want us to invest in. So let’s look at what we actually want to hear/read about:
<ul>
<li>
Where will the demand for your product come from? Too many developers fail to understand the market dynamics of supply and demand and who will be the buyers; 
</li>
<li>
The second part to who, is “why” will they buy it? Why does your product meet the identified demand and how have you gone about satisfying yourself this is so? Again, too many developers follow the herd. What we as financiers/investors want to see is a considered approach based on an understanding of the market and economic factors driving the product decisions. This doesn’t have to be a costly exercise with massive reports. Quite simply, we want to see that the developer understands the markets dynamics at play in the area he is choosing to develop, and that he has created a product designed to meet the relevant drivers;
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<li>
Why is yours better than the one down the road? Again, this is simply another way for you to demonstrate that you understand what the market wants and what the competition is doing. Frankly, if you don’t know the answer to these questions you should be seriously reconsidering why you are a developer.
</li>
<li>
What will they be willing to pay for it? And can you show evidence of similar product being purchased for that dollar value. Often the formal valuation report will be a precondition to settlement, and an approval will be required before it is produced. In its absence, we are looking for evidence to support the proposed Gross Realisation values in your feasibility. An ability to point to recent and relevant market sales in support of your assumptions is another way of demonstrating your professionalism;
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<li>
How much will it cost to secure the sales and how will they be funded? In order to attract these buyers, marketing collateral, and an on-site sales office, sales agents salaries, marketeers fees up front and back end are all important considerations which many developers pay minimal consideration to, often because they do not fully understand the issues involved. We cannot stress enough just how important these elements of the deal are, and how your understanding of them influences credit and equity investment decisions. In particular, how you propose to fund them before and during the project construction phases are key to us fully understanding the real profitability of the project. 
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Simply put, more than anything else, if you can demonstrate a clear understanding of these marketing and sales related processes (and they are two very different beasts) you will get the attention of a lender or equity investor. Once you have our attention, it’s a much easier process to gain the approvals you are seeking. 
To find out more about which option best suits your next project, contact Dan Holden at HoldenCAPITAL on 0401 669 502 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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