Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Loans

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Westpac will require new property investors to have a deposit of at least 20%, as APRA controls are starting to take effect.
According to the Australian Financial Review, Westpac will from yesterday cap loan-to-valuation ratios (LVRs) for new property investor loans at 80%.
It is the toughest limit imposed by a major bank so far as ANZ Bank introduces its 90% cap on LVRs for investor loans. National Australia Bank last month capped investor home loan LVRs at 90%, while the Commonwealth Bank has advised it will not take the tax breaks investor borrowers receive from negative gearing into account when LVRs on investor loans exceed 90%.
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jchancellor-FAypfDUnLy

Westpac tightens lender borrowing as APRA controls take effect

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Investment loans nationally declined in June from their earlier peak, with figures for June showing investment loans down to 36.9% when compared to the April highs of 43.1% of all mortgages processed.
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According to the AFG Mortgage Index a similar trend was felt across all states, with investment loans in Queensland down to 34.1% from 36.1%, Western Australia from 31.8% to 31.2%, Victoria from 36.5% to 35.7% and South Australia from 41.8% to 36.8% 
New South Wales fell the furthest, down to 41.6% from May's figure of 49.8%. During the past year investment loans in NSW held an average of 49.5% of all loans.
AFG managing director Brett McKeon said if this trend continues, it should help allay concerns about overheating in Sydney in particular, as investment levels come back into line with the sustainable, long term, national average.
 “These figures suggest that APRA controls are starting to take effect, but not at the expense of the overall mortgage market,” Mr McKeon said. 
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mick.cee-iDmgDDAmu8

June investment loan figures pull Sydney into line: AFG

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Mortgage brokers, Mortgage Choice has reported property investor loan approvals have dipped to a 20-month low.
The proportion of its loan approvals going to property investors fell from 34% in May to 30% in June, the lowest share since late 2013, chief executive John Flavell told Fairfax Media.
He said it was the first data pointing to a slowdown in investor lending triggered by banks' tougher credit policies.
John Flavell also noted the changes to credit policies were having an impact on some first-home buyers trying to enter the market as property investors. 
"It doesn't knock out the foreign investor. It doesn't knock out middle-aged, middle Australia with heaps of equity access and excess income and high tax. 
"It knocks out the people who are trying to get in," he said. 
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Investor loan volumes dip: Mortgage Choice

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SPONSORED POST
Nine reasons why developers fail to secure finance quickly or at all
1.     You expect banks/lenders to fund your project.
Whilst banks and lenders generally have clearly defined policies outlining what they can and cannot do, it is not automatic that just because your loan fits within their policy that they will fund it. This is particularly true in the current market with the volume of sound projects that we are seeing since the residential markets picked up in 2014. Lenders are being more selective and do not have to fund every project that lands on their desk, so It is imperative to present your project in the right way to motivate the lender to do the deal from the start, even after they hear about the 1 or 2 leniencies you might require or those boundaries that HCAP as your advisor are pushing to get you a better deal. Remember, approval is not automatic, we need to create a desire by the lender to be a part of your deal
2.     You negotiate terms before giving the lender the chance to understand the deal.
Similarly, it is understandable that everyone wants a good deal on finance, but starting the finance discussion by asking for or even dictating the terms you want before we or the lender know anything about your project or your capabilities to deliver it, is a fast road to disappointment. Borrowers with this approach have a long road in front of them to reach their destination. Any financier/broker/real-estate-agent can over-promise and under-deliver, and for some people that matches perfectly because they just want to be told what they want to hear. Smart developers are patient and understand that by firstly explaining their motivations and background and then providing the transaction details, including all the pros and cons (and their means of dealing with them), provides us with a reason to want to do the deal. Once this is established, we are motivated to provide competitively priced terms that reflect the relevant risks and meet the required timeframes. This then allows you to get on site quickly and do what you do what you hopefully do best, develop properties. So, explain first, ask later.
3.     You don’t have a genuine reason why you are doing the project.
As Henry Ford said “A business that only makes money, is a poor business”. Doing a project just because you out-bid a bunch of other developers to win it or because you own it and think it’s a good idea is not a reason of itself. Regardless of the state of the market cycle, site selection strategy differentiates the elite from the amateur developers. It is surprising how many developers base their acquisition strategy on being “friendly” with a few agents. Being close to the top of an agents speed dial list isn’t the sustainable business model a financier wants to hear. The elite developer identifies his target locations based on researching the demand supply due diligence he undertakes. They then scour the area (some literally go door to door having cups of tea) to capitalise on opportunities because to succeed they know that they need to understand the better sized lots on which to fit the best number of product per square metre of land; the neighbourhood plan and what they can push council for relaxations on; what the marketers can achieve in terms of sales rate per month from launch and all the other key issues that will ensure a viable project. Essentially, living and breathing a location and knowing where you can push and pull the boundaries to make a project to stack is the key. These smarter developers wear their ‘why’ on their sleeve and you can see it in the way they approach their business. These guys lead the market while the rest follow and some get left behind. Be strategic and have purpose if you want to be successful.
4.     There are gaps in your capability to deliver the deal but “you will find a way”.
Developers who have this problem, which can be financial or capabilities, fall into two categories; those who know it and are looking for someone else to solve their problems; and those that don’t. Whilst it can be admirable to see these people invest heavily in a project, it is also a concern. Frankly, those that don’t know they have a problem often never get it and like many things in this world, you can’t change them no matter how hard you try, so best to walk away. But for those who do understand their deficiencies there can be a solution if they are willing to listen and adapt. The secret is, understanding what you can do and being prepared to let others do what you cant. It is this second part, which is the hardest because it usually means that you have to give something up and that usually comes at a cost and can be both financial and some cases, control. This is probably the hardest process to undertake and the one that most often results in costly mistakes, by all concerned. To get the deal done, all parties concerned need to understand their strengths and weakness’ and be prepared to compromise to achieve a positive result. Quite often 50% of something is better than 100% of nothing.
5.     Can you control the key delivery elements of the project? 
An often seen issue is the inability for developers to recognise that they don’t have all the requisite skills to complete a project “in-house”. Property development is a complex process that requires many skill sets and even the elite developers know when to hire in the right professionals to help them out. Often a developer will try and bolt on skill sets to bolster their capabilities which is great, but having someone apply their time/service on an “all care no responsibility” basis is higher risk for you as the developer and us as a lender/investor in your project. As a lender/investor, we would much rather see you try and get their interests aligned with yours. Nearly all consultants will offer their time for a fixed fee or a per month rate, but if their services are a critical part of your delivery process why not incentivise them to the end objective which is a completed and profitable project? As an example, rather than paying $10k/month for 18 months ($180k), why not $6k/month ($108k) and a $120k performance bonus payable when there are surplus sales proceeds after repayment of the project debt. This ensures that person/company is very motivated to see the overall project succeed and is tied to the ultimate goal, which is profit. If an external party is critical to the project success, try to align their interests with yours.
6.     A one-page feasibility is not a “Finance Application” end of topic, just don’t do it. Ever.
7.     You’re not crunching your numbers over and over and over again.
Elite property developers constantly crunch their numbers over and over again to be sure they are not missing anything. They acquire or construct their own spreadsheets that allow them to continually refine price points, costs and timeframes as they gather more and more due diligence about these elements of their deal and they never stop the process. When asked questions about these elements, they have a good grip on their base case as well as optimistic and worst case results. Those who struggle often can’t tell you their break-even point per product, their cash flow requirements from now until project settlement, or marketing aspects like cost per lead and conversion rates to unconditional presale. If you want to impress us and the lender. Know your numbers.
8.     You don’t have a strategic and sustainable business model.
In addition to seeing that you have a purpose, a financier wants to see your business plan. It’s not all just about the one deal. Yes, sometimes a project is a once off because an owner decides to redevelop a site, but these are few and far between. In most cases you are intending to undertake multiple transactions and the lender wants to understand your ability to maintain sustainable flow of profitable transactions. So, what will you do for the next 18-24 months until that last apartment is sold and you have seed money again? How does your business grow? Cash is oxygen to any business and a lack of it limits growth potential. Developers often have A&amp;L statements showing all their capital invested in two or three projects and they can’t do another project until all the stars align and they get their money back from their current workload. What they also need to see is a carefully considered group cash flow that demonstrates how you are using your capital strategically and that you can do another project within the window of the current market cycle (maybe partner with a capital provider like Queen Street Invest). Again, show you have purpose, are a sustainable player and not a one-project wonder.
9.     Underprepared marketing and sales strategy.
Probably the single most common mistake we see from developers is a failure to understand the importance of and difference between marketing and sales and how to use the right resources. It doesn’t matter that you have secured the best team of professionals such as town planner, architect, builder and other technical support, if you don’t know how to tell the market about your product and you don’t have a team of skilled negotiators to secure sales, you can’t make a profit other than by accident! Time and again we see a blind faith in the reliance on local agents or ill-conceived marketing strategies that results in a failure to meet everyone’s expectations, often with catastrophic results. Remember, you don’t make a profit until the final sales are sold and settled. The secret is to do your homework and appoint professionals based on their proven expertise. As noted earlier, ensure that they are properly incentivised and that their remuneration is tied to the project profit! Don’t be afraid to spend money on marketing and sales, understand the difference, how and when to use them and why they are the key to delivering your profit.
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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Nine reasons why developers fail to secure finance quickly or at all: Holden CAPITAL 

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The Commonwealth Bank of Australia has informed mortgage brokers that new borrowers' existing debts and their incomes are to be assessed more stringently.
CBA will apply a servicing loading of 20% to all repayments on existing home loans and lines of credit held by customers.
The 20 per cent loading means repayments that were assessed at $1000 a month will now be assessed at $1200 a month.
CBA also said it would accept only 80% of income from overtime, bonuses, and investment income when it is assessing home and investment loan applications. 
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<div class="cq-article-content-media section">The maximum loan-to-valuation ratio for all owner-occupied home loan applications would be 95%, compared to currently allowing LVRs of up to 97%, including the cost of mortgage insurance.</div>
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Overtime income won't count as much as CBA tightens home loan lending

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As at 31 March 2015, the total of residential term loans to households held by all authorised lenders was $1.30 trillion, according to the latex March quarter 2015 APRA figures.
This is an increase of $23.9 billion (1.9%) on 31 December 2014 and an increase of $107.1 billion (9%) on 31 March 2014. 
 Owner-occupied loans accounted for 65.4% of residential term loans to households.
Owner- occupied loans were $852 billion, an increase of $12.7 billion (1.5% on 31 December 2014) and  $57.3 billion (7.2% on 31 March 2014). 
Investment loans accounted for 34.6% of residential term loans. Investment loans were $450.2 billion, an increase of $11.2 billion (2.6%) on 31 December 2014 and $49.8 billion (12.4%) on 31 March 2014. 
<img src="/images/2015/05/26/apra1.jpg" alt="">
The latest lending data suggests lenders are generally meeting the 10% growth restraint sought by APRA, though some still to sufficiently rein in the pace of investor loans.
It has been suggested more than 82% of investor lending remains within APRA’s macro prudential growth target (not materially above 10%).
While a number of lenders are comfortably below this range (around 12% of market share) and have scope to increase their exposure to housing investors, some lenders are tracking well above APRA’s macro prudential target growth range. 
The 10 per cent benchmark is not a hard limit, but is a key risk indicator for supervisors in the current environment. 
The benchmark has been established after advice from members of the Council of Financial Regulators, taking into account a range of factors including income growth and recent market trends.
ADIs with greater than $1 billion of residential term loans held 98.4% of all residential term loans as at 31 March 2015. These ADIs reported 5.3 million loans totalling $1.28 trillion.
Of these loans: the average loan size was approximately $243,000, compared to $235,000 as at 31 March 2014; $479.1 billion (37.4%) were interest-only loans; and $30.1 billion (2.3%) were low-documentation loans.
New housing loan approvals with ADIs with greater than $1 billion of residential term loans saw approval of $82.3 billion of new loans in the quarter ending 31 March 2015. This is a decrease of $10.9 billion (11.7%) on the quarter ending 31 December 2014 and an increase of $8.5 billion (11.5% on the quarter ending 31 March 2014.
Of the new loan approvals $51.9 billion (63.0%) were for owner-occupied loans, a decrease of $6.5 billion (11.2%) from the quarter ending 31 December 2014; $30.4 billion (37.0%) were for investment loans, a decrease of $4.4 billion (12.6% from the quarter ending 31 December 2014; $34.8 billion (42.3%) were interest-only loans; $9.1 billion (11.1% had a loan-to-valuation ratio greater than or equal to 90%; and $0.6 billion (0.7%) were low-documentation loans. 
 
<img src="/images/2015/05/26/apra2.jpg" alt="">
 
It was December 9 last year when tthe Australian Prudential Regulation Authority (APRA) wrote to authorised deposit-taking institutions (ADIs) outlining further steps it plans to take to reinforce sound residential mortgage lending practices. 
These steps have been developed following discussions with other members of the Council of Financial Regulators.
In the context of historically low interest rates, high levels of household debt, strong competition in the housing market and accelerating credit growth, APRA has indicated it will be further increasing the level of supervisory oversight on mortgage lending in the period ahead.
Las December APRA advised it did not propose to introduce across-the-board increases in capital requirements, or caps on particular types of loans, to address current risks in the housing sector.
However, APRA flagged to ADIs that it will be paying particular attention to specific areas of prudential concern.
These included:
<ul>
<li>higher risk mortgage lending — for example, high loan-to-income loans, high loan-to-valuation (LVR) loans, interest-only loans to owner occupiers, and loans with very long terms;</li>
<li>strong growth in lending to property investors — portfolio growth materially above a threshold of 10 per cent will be an important risk indicator for APRA supervisors in considering the need for further action;</li>
<li>loan affordability tests for new borrowers — in APRA’s view, these should incorporate an interest rate buffer of at least 2 per cent above the loan product rate, and a floor lending rate of at least 7 per cent, when assessing borrowers’ ability to service their loans. Good practice would be to maintain a buffer and floor rate comfortably above these levels.</li>
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In the first quarter of 2015, APRA supervisors indicated they would be reviewing ADIs’ lending practices and, where an ADI is not maintaining a prudent approach, may institute further supervisory action.
This could include increases in the level of capital that those individual ADIs are required to hold.
APRA Chairman Wayne Byres noted that while in many cases ADIs already operate in line with these expectations, the steps announced last December would "help guard" against a relaxation of lending standards and, where relevant, prompt some ADIs to adopt a more prudent approach in the current environment.
‘This is a measured and targeted response to emerging pressures in the housing market. These steps represent a dialling up in the intensity of APRA’s supervision, proportionate to the current level of risk and targeted at specific higher risk lending practices in individual ADIs’ he said.
‘There are other steps open to APRA, should risks intensify or lending standards weaken and, in conjunction with other members of the Council of Financial Regulators, we will continue to keep these under active review.’
The steps announced today build on the enhanced monitoring and supervisory oversight of residential mortgage lending risks that APRA has put in place over the past year, which has included a major stress test of the banking industry, targeted reviews of ADIs’ residential mortgage lending and the release of detailed guidance to ADIs on sound residential mortgage lending practices.
APRA’s heightened supervisory focus on lending standards is being conducted in conjunction with the review of interest-only lending announced by the Australian Securities and Investments Commission (ASIC).
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Property investor lending running at 12.4% annual growth: APRA

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If APRA enforce’s the assessment of a new mortgage holder’s ability to pay down their mortgage obligations the right way, it would cause a heavy blow to the Australian economy. The base assumption is that mortgage stress starts when more than 30% of household income is used to pay down the mortgage. Most households with new financing are already experiencing this stress at record low rates.
In Australia’s instance, and based on after tax income, households would only be able to borrow 3.64x the household income (unless the household already has other debt commitments) if the 7% servicability rule was to be property enforced. The only way to safely assure that new mortgage holders would be able to absorb 7% interest on a new mortgage is if it is based on the ability of the mortgage holder to manage 7% interest rates after income tax and all other debts taken into considerations have been factored in….unless you allow for dodgy measurements which Australian lenders are good at using.
<img src="/images/2015/05/25/lf_economics.jpg" alt="">As the above figure illustrated, this would mean one heck of deleveraging event in Australia if new borrowers borrow significantly less than the previous borrowers which would break down Australia’s Ponzi household lending business. Had the RBA not taken abnormal measures to save the housing market now on two occasions in the last seven years, Australia would not be in this problem so far down the road. Until then, hardly a shred of chance APRA will act tough. Like it’s associates at the RBA, talk is talk and data is data. And both have been managing a bubble, not an economy. That’s what the data tells us.
Lindsay David is the author of <a href="https://www.amazon.com.au/Australia-Australian-Credit-Property-Bubble-ebook/dp/B00JJ7UW0S/ref=sr_1_1?ie=UTF8&amp;qid=1410612321&amp;sr=8-1&amp;keywords=australia+boom+to+bust" target="_blank">Australia: Boom to Bust</a> and <a href="https://www.amazon.com/Print-Central-Bankers-Lindsay-David-ebook/dp/B00TMHEDBY/ref=sr_1_1?ie=UTF8&amp;qid=1423979661&amp;sr=8-1&amp;keywords=print+the+central+bankers+bubble" target="_blank">Print: The Central Bankers Bubble</a>. David recently founded <a href="https://www.lfeconomics.com" target="_blank">LF Economics</a> and holds an MBA from IMD Business School. He blogs at <a href="https://blog.australiaboomtobust.com" target="_blank">Australia Boom to Bust.</a>
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LindsayDavid-WEhfyLvNJJ

APRA won't act tough, just talk on property investor lending: Lindsay David

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Ramping up its supervision after the surge in property prices to the investor driven east coast property markets, Australian Prudential Regulation Authority chairman Wayne Byres has indicated the authority was aware of lending examples that were less than prudent.
“So there is no confusion, let me be clear that Australian ADIs (authorised deposit-taking institutions) are thankfully well away from the types of subprime lending that have caused so many problems elsewhere (for example, lending with an loan-to-value ratios in excess of 100 per cent, at teaser rates, to borrowers with no real capacity to repay),” he said.
“Nevertheless, our overall conclusion from this hypothetical borrower exercise was that there were clearly examples of practice that were less than prudent,” he told the recent Customer Owned Banking Association event, which was not open to media, but reported by The Australian.
“Authorised deposit-taking institutions with more aggressive practices should fully expect to find APRA increasingly at their doorstep," he said.
Meanwhile major lenders have been withdrawing discount offers extended to brokers on property investment loans. 
The Australian Broker website revealed today that two major banks have amended pricing discounts available to standard variable rate and fixed rate investment loans.
It is all part of the Australian Prudential and Regulatory Authority clamp down on current high lending levels of property investor loans.
National Australia Bank has also flagged a reduction in the discounts offered to property investor loans following the APRA request to keep investor loan growth below 10% per annum.
Available funds will be cut back "by at least a third" within weeks, John Symond, the founder and chairman of Aussie Home Loans believes as banks react to the regulatory authorities.
"Banks are going to be knocking back a lot of investor applications," <a href="/expert-insights/investing/tougher-apra-set-to-restrict-property-investor-lending-by-at-least-a-third-john-symond">he told Ross Greenwood on the 2GB Money News program this week</a>.
The Commonwealth Bank has reviewed its $1,000 Investment Home Loan Rebate Offer. “We will honour the offer for all Investment Home Loan applications, created by close of business on Friday 15 May,” the email read. The CBA announced reduced pricing discounts offered on investor loans, while stressing "heavier discounts very much remain available for Owner Occupied lending”. The ANZ head of third party relationship channels, Kieran Evans advised ANZ is carefully managing its home loan business to ensure its portfolio grows in a balanced way. “As a result, we will be introducing a range of changes to how we manage investor lending effective immediately,” he said. For customers with investor only lending, ANZ will only offer advertised rates – discretionary pricing will be not be available, the major said.
However, for customers with existing owner occupier lending with ANZ, the major will offer discretionary pricing on investor loans. Further, to offset the removal of investor switching discretions, Evans said ANZ have increased the owner occupier discretion to $1,200 and have reduced the eligibility to greater than $500,000.
Bankwest has made it harder for investors to secure loans, as APRA’s campaign on lending standards is taking effect.
Bankwest will now apply a maximum LVR of 80% for investment purposes, including property and shares, a departure from the bank well known for accepting investor loans up to 98% LVR.
The value of home loans written in March jumped 3.8 per cent to $31.3 billion, up 11.7 per cent over the year.
The March rise was principally by investor lending, up 6.4 per cent.
On an annual basis, investor loans were up 20.9 per cent rate, which was more than double the 10 per cent speed limit identified by APRA regulators earlier this year.
Banks have also been re-assessing the rental income levels that they are calculating when taking into account overall income of investors.
And making it tougher Westpac also foreshadowed changes which will impact investors’ serviceability with the bank removing negative gearing benefits from its servicing calculator.
FOR INFORMATION ON PROPERTY LOANS, RATES AND MORE, VISIT MOZO.COM.AU OR <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">CLICK HERE</a> FOR THE FREE PROPERTY OBSERVER EBOOK, GET LOAN-SAVVY – TIPS FOR A FIRST TIME, INVESTMENT OR REFINANCING LOAN, WHICH HELPS YOU DECIDE ON A HOME LOAN THAT MEETS YOUR REQUIREMENTS. 
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