Savings

Buyers interested in Richmond&rsquo;s latest project, Gramercy Terraces, have been advised they may &ldquo;miss out&rdquo; as only two townhouses remain in the successful Lendlease development.

Gramercy Terraces is a new boutique offering composed of freehold three and four-bedroom terrace homes, in the desirable eastern pocket of Richmond.

[smartcode_project:default project_id=95458 project_image_fid=169943]

&ldquo;Enjoy the perfect harmony of inner-city living and leafy tree-lined streets, in a home with refined contemporary finishes inspired by its industrial heritage&rdquo;, the developers said.

The elegant development boasts Miele appliances, artisan tapware, Italian stone, tiles, pavers, and a designer light pendant artistically suspended over an expansive stone kitchen island bench.

[smartcode_project:default project_id=95458 project_image_fid=169940]

Designed by one of Melbourne&rsquo;s most renowned architects, Bates Smart, each terrace has been meticulously designed.

Through spacious floorplans and playful shapes, an abundance of natural light beckons from one space to the next thanks to extensive skylights.

[smartcode_project:default project_id=95458 project_image_fid=169939]

The floating timber central staircase brings warmth into the centre of the home and offers the feeling of unrivalled space.

Families will appreciate the choice of quality education within close range, including Melbourne Girls College, Melbourne High School, St Catherine&rsquo;s School and Hawthorn West Primary School.

[smartcode_project:default project_id=95458 project_image_fid=169944]

Significant stamp duty savings are currently available for eligible buyers.

[smartcode_project_cta: project_id=95458]

Significant stamp duty savings are currently available for eligible buyers. 

max.kwok_55688

Only two townhouses remain at Lendlease’s new Gramercy Terraces in Richmond

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Owner-occupiers can stand to save up to $73,000 in the Parkhill apartment development in West Melbourne.

The project developer Central Equity are matching the VIC government's $15,000 HomeBuilder grant to save Parkhill buyers $30,000.

That, combined with the potential to save up to $43,000 in stamp duty for owner-occupiers, totals $73,000 of savings. 

[smartcode_project:default project_id=27406]

Investors will benefit from the $24,500 in stamp duty concessions, and Central Equity are offering a rental guarantee for investor purchasers.

One bedroom apartments in the block start from $479,000, or closer to $400,000 for owner-occupiers after the savings boost.

Two bedroom apartments start from $619,000, up to $819,000 when including an extra bathroom and a parking space.

<a href="https://www.urban.com.au/new-apartments/parkhill-apartments-408-spencer-street-west-melbourne"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/parkhill_melbourne_render_2.jpg" width="1202"></a>

The apartments, many spanning more than 70 sqm, have been designed by Central Equity's inhouse design team. They all have up to 2.7 metre high ceilings, a gourmet kitchen with stone benchtops and Miele appliances and bathrooms with German tapware.

The development has a 6.5 star energy rating, with apartments fitted with double glazed windows.

Residents in the building will have access to a seven day concierge, a rooftop gym and a rooftop garden, complete with barbecues and outdoor seating.
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Owner-occupiers can stand to save up to $73,000 in the Parkhill apartment development in West Melbourne.

Joel Robinson

Buyers could save up to $73,000* on a brand new home at West Melbourne's Parkhill thanks to developer Central Equity matching the government grants

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A survey from RateCity.com.au revealed that 42 per cent of Australians are more proactive about how they manage their money since COVID-19.
Young Australians felt especially money-conscious with 61 per cent of 18 to 34-year-olds saying they felt more proactive about managing their money following the pandemic.
The results support recent APRA and RBA findings that Australians are saving, not splurging during COVID-19.
APRA figures from earlier this year show Australians have an extra $64.41 billion more deposits in the bank compared to the start of COVID-19.
Many Australians have used their time in lockdown to clear credit card bills, refinance their home loans and build up a savings buffer, RateCity research director Sally Tindall said.
“For a lot of young Australians, their travel plans have gone up in smoke, their night life has been reigned in and, as a result, they’ve got spare cash to put towards their first car or home.”
RateCity’s tips to be more proactive include setting savings goals, checking rates and clearing high interest debts.
As reductions to JobSeeker and JobKeeper are set to squeeze millions of household budgets, people are advised to get their finances in order now.
“If that’s you, it’s worth talking to a financial counsellor to get your finances into the best shape possible as your income drops,” Tindall said. 
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j.ballantyne1990-6AQqhLzZaK

Young Aussies are saving not splurging during COVID: RateCity

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The Reserve Bank has left the cash rate on hold today at 0.25 per cent but has left the door open to a future cut.
While home-owners won’t be getting an RBA cut from their bank this month, they can still save thousands by refinancing.
New figures released by the RBA today show the average existing mortgage holder had a home loan rate of 3.19 per cent in August, yet new owner-occupier customers were offered, on average, a rate of just 2.69 per cent.
RateCity.com.au database
<ul type="disc">
<li>Lowest variable rate is 1.89%</li>
<li>Lowest big four bank variable rate is 2.19% (Westpac, intro rate for 2 years, reverts to 2.69%)</li>
<li>87 lenders have at least one fixed or variable rate below 2.50%</li>
<li>12 lenders have at least one fixed or variable rate below 2%</li>
</ul>
RateCity.com.au analysis shows the average owner-occupier would pay $33 less a month with a 0.15 per cent rate cut, but if they refinanced to the RBA average new customer rate their monthly repayments could drop three times as much.
RateCity.com.au research director, Sally Tindall, said mortgage holders don’t need to wait around for the RBA to save money.
“While home-owners didn’t get any reprieve from the RBA this month, they can still make significant savings by shopping around."
“If you’re fortunate enough to still have your regular income and a decent amount of equity in your home, you’re in prime position to capitalise on the refinancing boom."
“According to RBA data, the average existing home loan customer is on a rate that’s half a percent higher than a new customer."
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RBA holds but home-owners can triple savings by refinancing: RateCity

Savers squeezed again as ANZ cuts rates

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Big four bank standard savings accounts
These accounts have no ongoing terms and conditions. They typically include an introductory period which offers bonus interest for several months, before dropping to a low ongoing rate.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="81">
Bank
</td>
<td valign="bottom" nowrap width="110">
Product Name
</td>
<td valign="bottom" nowrap width="81">
Base Rate
</td>
<td valign="bottom" nowrap width="81">
Intro Rate 
</td>
<td valign="bottom" nowrap width="81">
Max Rate
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
CBA
</td>
<td valign="bottom" nowrap width="110">
Net Bank Saver
</td>
<td valign="bottom" nowrap width="81">
0.10%
</td>
<td valign="bottom" nowrap width="81">
1.55%
</td>
<td valign="bottom" nowrap width="81">
1.65%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
Westpac
</td>
<td valign="bottom" nowrap width="110">
eSaver
</td>
<td valign="bottom" nowrap width="81">
0.10%
</td>
<td valign="bottom" nowrap width="81">
1.56%
</td>
<td valign="bottom" nowrap width="81">
1.66%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
NAB
</td>
<td valign="bottom" nowrap width="110">
iSaver
</td>
<td valign="bottom" nowrap width="81">
0.11%
</td>
<td valign="bottom" nowrap width="81">
1.44%
</td>
<td valign="bottom" nowrap width="81">
1.55%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
ANZ
</td>
<td valign="bottom" nowrap width="110">
Online Saver
</td>
<td valign="bottom" nowrap width="81">
0.10%
</td>
<td valign="bottom" nowrap width="81">
1.50%
</td>
<td valign="bottom" nowrap width="81">
1.60%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
</tbody></table>
Note: Max rate is the base and bonus added together 
Big four bank conditional savings accounts
These accounts require you to meet certain terms and conditions, such as one deposit a month and no withdrawals, in order to qualify for the bonus interest that month.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap>
Bank
</td>
<td valign="bottom" nowrap>
Product
</td>
<td valign="bottom" nowrap>
Base Rate 
</td>
<td valign="bottom" nowrap>
Bonus Rate 
</td>
<td valign="bottom" nowrap>
Max Rate
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
CBA
</td>
<td valign="bottom" nowrap>
Goal Saver
</td>
<td valign="bottom" nowrap>
0.01%
</td>
<td valign="bottom" nowrap>
0.89%
</td>
<td valign="bottom" nowrap>
0.90%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
Westpac
</td>
<td valign="bottom" nowrap>
Life
</td>
<td valign="bottom" nowrap>
0.45%
</td>
<td valign="bottom" nowrap>
1.20%
</td>
<td valign="bottom" nowrap>
1.65%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
NAB
</td>
<td valign="bottom" nowrap>
Reward Saver
</td>
<td valign="bottom" nowrap>
0.11%
</td>
<td valign="bottom" nowrap>
1.39%
</td>
<td valign="bottom" nowrap>
1.50%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
ANZ
</td>
<td valign="bottom" nowrap>
Progress Saver
</td>
<td valign="bottom" nowrap>
0.01%
</td>
<td valign="bottom" nowrap>
1.59%
</td>
<td valign="bottom" nowrap>
1.60%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
</tbody></table>
Note: Note: Max rate is base and bonus added together
Rates based on balances less than $50,000. The Commonwealth Bank of Australia offers higher rates for larger deposits.
Highest ongoing savings rates on <a href="http://ratecity.com.au/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">RateCity.com.au</a>
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="195">
Bank
</td>
<td nowrap width="91">
Max rate
</td>
<td nowrap width="251">
Conditions
</td>
</tr>
<tr>
<td nowrap width="195">
Xinja
</td>
<td valign="bottom" nowrap width="91">
2.25%
</td>
<td valign="bottom" nowrap width="251">
Must have linked bank account
</td>
</tr>
<tr>
<td nowrap width="195">
Up
</td>
<td valign="bottom" nowrap width="91">
2.25%
</td>
<td valign="bottom" nowrap width="251">
4 card purchases from everyday acct
</td>
</tr>
<tr>
<td nowrap width="195">
86 400
</td>
<td valign="bottom" nowrap width="91">
2.25%
</td>
<td valign="bottom" nowrap width="251">
Deposit of $1000 in everyday acct
</td>
</tr>
<tr>
<td nowrap width="195">
BOQ
</td>
<td valign="bottom" nowrap width="91">
2.15%
</td>
<td valign="bottom" nowrap width="251">
Deposit of $1000 in everyday acct
</td>
</tr>
<tr>
<td nowrap width="195">
UBank
</td>
<td valign="bottom" nowrap width="91">
2.10%
</td>
<td valign="bottom" nowrap width="251">
Deposit of $250 in transaction acct
</td>
</tr>
</tbody></table>
Note: excludes kids savers and introductory rates.
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Best saving rates amongst Australian banks, RateCity reveals 

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EXPERT OBSERVER
When discussing housing affordability, older Australian tend to point to much higher interest rates in the past as being a challenge while for younger Australians, higher property values are seen as the biggest barrier to home ownership. The truth of the matter is it is much more nuanced than this, but on balance I would say it is much harder to break into the housing market now than it has been in the past but it is not due to much higher property values alone. Let’s take a look why.
Although dwelling values have reduced over recent years, housing is in most instances (much) more expensive than it has been in the past. While this is an important consideration it is not the be all and end all.
One of the commonly repeated memes is that interest rates were high in the early 1990s thus making buying a home difficult. What probably made buying a home more difficult at time was the fact that the unemployment rate reached as high as 11.2% compared to the 5.2% today however, once again it is a bit more nuanced than that. When unemployment peaked, the male workforce participation rate was 73.8% which is actually higher than it currently is (70.9%) while the female participation rate was 51.9% compared to the historic high of 61.1% it is currently.
Furthermore, although the unemployment rate peaked at 11.2% in December 1992, the underemployment rate at that time was 7.8% compared to the 8.9% it is currently. Delving a little deeper to look at underemployment for those likely to be saving for a mortgage, the underemployment rate in December 1992 for 15-24 year olds and 25-34 year olds was 13.3% and 6.7% respectively in 1992 compared to 20.7% and 7.2% respectively today.
Although the unemployment rate was much higher in 1992 than it is today, there were fewer females in the workforce. Individuals that had a job were more likely to be getting as many hours as they wanted compared to today’s workers, particularly younger workers, the ones most likely to be trying to save a home deposit. The fact that female participation has lifted so much over recent years also points to the fact that saving for and paying off a mortgage increasingly requires more than one income.
Another factor pointing to entering the housing market being more or just as difficult in the past as it is today is the higher interest rates in the early 1990s. If you had a mortgage at that time that was certainly a somewhat difficult time however, if you were saving for a deposit at that time you were also receiving substantially higher rates of interest on your savings. When standard variable mortgage rates for owner-occupiers hit their peak at 17% between June 1989 and March 1990, 12 month term deposit rates for savers hit as high as 16% but ranged from 14.2% to 16.0%.
Today, standard variable mortgage rates are recorded at 4.94% and 12 month term deposit rates are 1.65%. Both are at historic lows however, the gap between the term deposit and variable mortgage rate is only slightly lower than its historic high and much larger than it was in the past. While a current potential buyer may be looking to save for the mortgage, they aren’t getting the assistance from higher interest rates that they may have in the past.
Inflation is also a key consideration in this discussion. Inflation is at record low levels currently and was much higher in the past. While many people tend to not consider it, higher inflation is typically accompanied by higher interest rates but equally if the cost of everything is increasing more rapidly, it results in the erosion of the real value of a mortgage. Given this, higher inflation should lead to mortgagees being able to pay off their mortgage quicker. While this doesn’t necessarily impact on those people saving for a deposit it does mean that once they take out a mortgage, paying it off is relatively easier with higher inflation than it is with lower inflation.
Saving a deposit for a mortgage has always been difficult. When I first took out a mortgage I was lucky that my parents were able to assist. Equally, when my parents first took out a mortgage in the 1970s they had parental assistance and my children will most likely need assistance from my wife and me.
Unfortunately, not everyone is in a position to receive the same assistance and when you look holistically at the current factors of high property values, insecure employment, low inflation and subsequently low interest rates, I think it is more difficult than it has ever been to save for a mortgage. Supporting this opinion is the fact that the share of households that are renting continues to rise while the share of owner-occupier households both with or without a mortgage continues to fall.
Improving access to potential first home buyers is extremely difficult, with grants tending to push values higher but it is clear something needs to be done. Unfortunately, falling dwelling values have broader repercussions for the economy because so much household wealth is tied to housing. Ideally, after recent value declines we see the housing market show modest gains over the coming years which would continue to gradually improve affordability over time. In saying this, it still doesn’t really address the challenge that saving a deposit continues to be the biggest hurdle and low interest rates look to be in place for a number of years to come.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
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ckusher-ujnxiKuFQs

Saving for a mortgage deposit is harder than ever before: CoreLogic's Cameron Kusher

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GUEST OBSERVATION
Since home loan rates have hit new historic lows in July after two 0.25 percentage point rate cuts from the Reserve Bank in the last two months, now is a great time to be a borrower.
Never before have we seen home loan rates this low. 
The property market is showing early signs of recovery, regulators have eased home loan serviceability guidelines and lenders are cutting rates.
The fees involved in refinancing have come down a lot in the last few years and lenders are actively competing for business.
In short, and depending on your personal situation, conditions seem quite attractive for borrowers and home buyers right now.
There are now so many lenders offering variable headline home loan rates under four per cent, it really is the perfect time to borrow.
And there is an increasing number of lenders going under three per cent, which is quite amazing.
The lowest advertised home loan rates currently listed by InfoChoice are:
Variable rate: 2.89 per cent p.a. (comparison rate 2.89 per cent p.a.) from Reduce Home Loan’s <a id="LPlnk67204" href="https://www.infochoice.com.au/product/home-loans/reduce-home-loans/low-rider-variable-56868" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Low Rider Variable</a> loan.
Fixed rate: 2.79 per cent p.a. (comparison rate 4.17 per cent p.a.) from Greater Bank’s <a id="LPlnk850745" href="https://www.infochoice.com.au/product/home-loans/greater-bank-limited/great-rate-fixed-home-loan-13426" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">12 month Fixed</a> Home Loan.
The highest savings rates currently listed by InfoChoice are:
At-call savings accounts: 2.55 per cent p.a. max bonus rate (base rate 1.15 per cent) from <a id="LPlnk827466" href="https://www.infochoice.com.au/product/banking/savings-account/rams/rams-saver-24819" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">RAMS Saver</a> (make $200 deposit &amp; no withdrawals in a month)
12 month Term Deposits: 2.5 per cent p.a. from <a id="LPlnk215455" href="https://www.infochoice.com.au/product/banking/term-deposits/qudos-bank/term-deposits-20011" target="_blank" data-auth="NotApplicable">Qudos Bank</a>.
VADIM TAUBE is the Chief Executive Officer of <a href="https://www.infochoice.com.au" target="_blank">InfoChoice</a>
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It's a great time to be a borrower: InfoChoice's Vadim Taube

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Commonwealth Bank have become the last of the big four to cut their saving rates following the July cut by the RBA.
They've cut the ongoing rate on its Netbank savings account by 0.15%.
After the introductory five months of 2.05 percent, savers will only get 0.15% in interest from then on.
<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/2019/7/24/CBA%20Saver%202.jpg" alt="">
CBA has also cut the bonus rate on its Goalsaver account by up to 0.25 per cent.
<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/2019/7/24/CBA%20saver.jpg" alt="">
RateCity<a href="http://ratecity.com.au/">.</a>com.au research director Sally Tindall said the cuts are another blow for savers.
“CBA has cut some of its savings accounts by just 0.15 per cent while others have been slashed by up to 0.25 percent," Tindall says.
“CBA cut the majority of its variable home loan rates by just 0.19 per cent so it’s disappointing to see some cuts to savings accounts have gone above this.
“Now is an excellent time to review your savings accounts and see if you are getting the most bang for buck in what is a very difficult market for savers.”
The big four have now all cut their saving rates following the RBA cash rate cut.
They are now as follows:
<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/2019/7/24/Big%20Four%20Savings%20Accounts.jpg" alt=""> 
 
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jrobinson-rf4aSBido9

CBA cut Netbank savings rate to 0.15 percent

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ANZ is the last of the big four banks to cut their savings account rates, following the Reserve Bank’s decision to cut the cash rate earlier this month.
They have reduced the rates on their Progress Saver and Online Saver accounts by 0.20% – 2 basis points more than they passed onto their home loan customers on 14 June 2019.
ANZ offer the highest ongoing savings rate out of the big four of 2.20%, while Westpac offers the highest introductory rate of 2.31% for a period of five months.
“Introductory rates have become the white elephant of banking,” RateCity.com.au research director Sally Tindall said. 
“All four big banks have slashed their base rates to just 0.30% interest, when inflation is sitting at 1.3%. That’s a nightmare equation for anyone trying to save."
RateCity.com.au data shows that over 47 banks have dropped their savings rates since the RBA cash rate cut on June 4, including ING, AMP, Bank of Queensland, ME, Suncorp and Bendigo, in addition to the big four banks.
According to RateCity.com.au’s database the average cut to savings account rates by banks who have moved is 0.23%, while the maximum cut on the database is 0.50%.
As a result of all the changes, the average savings account rate is now 1.55%. 
<img src="https://www.urban.com.au/images/2019/6/26/Big%204%20rates%20June%2026.JPG" alt="">
Source: Ratecity.com.au
<img src="https://www.urban.com.au/images/2019/6/26/Top%20savings%20rates%20June%2026.JPG" alt="">
Source: Ratecity.com.au
UBank has not cut this rate since the RBA cash rate change on June 4.
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