Updates

30 DecNew home loan rules are here: What you need to know

From 1 November, banks must ensure that new home loan applicants would be able to repay their mortgage at a new rate – so what will this actually mean for would-be buyers? Australian Prudential Regulation Authority’s (APRA) recent rule change has placed the new “stress test” for home loan applicants at 3 per cent – from the previous 2.5 per cent buffer. What this means is that banks must consider whether would-be borrowers will still be able to afford repayments on a loan 3 percentage points above current rates. APRA has stated that this would reduce people’s maximum borrowing capacity by approximately 5 per cent. According to RateCity, the big four banks (CBA, ANZ, Westpac and NAB) have stated that loans with unconditional approval that have not yet settled will still be processed using the old 2.5 per cent serviceability test.  They’ve also indicated that they will continue to assess customers with pre-approval […]

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21 DecFour savvy ways to supercharge commercial investing returns

One of the strongest benefits of investing in commercial property is the ability to add value to the property to increase its worth. This aspect alone is what makes commercial so lucrative and sets it apart from its low-yielding counterpart, residential. If you’re looking to maximise your commercial property returns, here’s four key things to consider: Rent Increases One way to slowly build capital in a commercial property is to simply allow the rent to increase over time. If you are negotiating the lease yourself, this could be an opportunity to add value at a faster rate. Most leases have an annual scheduled increase built into them and as the rent grows, so does your commercial property’s value. There are a few options for annual rent reviews. You can set them to coincide with the CPI (Consumer Price Index), which is the most common approach. A fixed percentage increase is […]

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28 OctHouse Prices Rocket in Australia’s Top Regional Growth Areas

Home values in Australia’s most in-demand country towns are surging strongly as the COVID-led exodus from capital cities continues, with the nation’s top five growth areas for regional migration located within a three-hour drive of Melbourne.  New research from the Commonwealth Bank showed Melbourne’s numerous and lengthy lockdowns drove a mass exodus to nearby country towns in 2020-21, with five local government areas within a three-hour drive recording at least a 47 per cent lift in regional migration. Leading the nation with a 68 per cent rise in regional migration was the Shire of Moorabool in western Victoria, with its main centres Bacchus Marsh and Ballan not only recording strong population growth, but also big gains in house prices. CoreLogic data showed median house prices rose by 17.6 per cent in the 12 months to the end of August in Bacchus Marsh, which is located around 45 kilometres from the Melbourne CBD. Ballan house values […]

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23 OctBooming property prices push household wealth to record levels in Australia

Booming property prices have pushed Australia’s household wealth to record levels, despite hundreds of thousands of people remaining unemployed. Key points: Australia’s total household wealth hit a record high of $12 trillion in December The value of the country’s residential property soared by more than $450 billion in the last six months of 2020 Treasury warns the unemployment rate could increase in coming months The value of Australia’s residential property jumped by roughly $250 billion in the last three months of last year. It followed an increase in property values of more than $200 billion in the September quarter. According to the Australian Bureau of Statistics (ABS), the combination of rising property prices and a recovery on stock markets saw total household wealth grow by $501 billion in the December quarter — the largest quarterly growth since December 2009. The recovery in stock markets in the last half of 2020 […]

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23 SepHow To Buy A Property Amid Lockdown Supply Issues

COVID-19 lockdowns have severely hampered market activity across much of the nation this year, seeing many vendors postpone sales campaigns until buyers can attend auctions and open for inspections in person. This has seen a significant reduction in the supply available to eager buyers, who have been forced to compete for the reduced purchasing opportunities, via online auctions or private sales. Across the nation, total stock advertised was down 27.1 per cent on the five year average in the four weeks leading up to August 8, according to CoreLogic.  Sydney, suffering under its protracted lockdown, has seen new listings fall more than 17 per cent over the four weeks leading up to mid August. Once lockdowns eventually ease however, we can expect a surge in market activity, as vendors take the opportunity to hold in person auctions and open for inspections again. This pattern was seen following Melbourne’s protracted lockdown […]

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13 SepInvestor activity rising | Green home loans explained | ATO warns investors about tax mistakes

First home buyers have been drifting out of the market, while investors have been piling in, according to the most recent data from the Australian Bureau of Statistics. June was the fifth consecutive month in which the number of first home buyer loans fell and in which the share of first home buyer loans (compared to the overall market) fell. At the same time, June was the third consecutive month in which investors increased their market share. Still, first home buyer activity is at historically high levels – the number of first home buyer loans in June was 47.1% higher than the year before. But so is investor activity – which increased by 116.0% over the same period. Whether you’re a first home buyer or an investor, the market is hot right now and competition for properties is fierce. So it’s important to organise pre-approval before you start house-hunting. That […]

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