Throughout the last 12- 18 months, the construction market has grown more challenging with rising material costs and an unprecedented increase in delays, defects and deferred settlements. An unfortunate consequence has been the rise of insolvencies across the sector. Having access to up-to-date data to improve forecasting and time management has proved instrumental to the success of contractors and construction companies. How can this data help businesses succeed? 1. Stay on top of market trendsHaving a good understanding of the current state of the construction market, including the cost of materials, labour rates, and current project information, can help you make more informed decisions and stay ahead of the competition. This information can also help you anticipate changes in the market and adjust your strategies accordingly. 2. Improve forecastingA clear understanding of project timelines is essential for building your pipeline. Knowing the expected start and completion dates for projects allows […]

Australian rent values have increased 24.1% between the start of an upswing in September 2020, through to February 2023. On the surface it would appears to be the perfect storm for property investors. The pace of monthly rent increases is accelerating, the monthly vacancy rate nationally slipped back to 1.0% in February, and the count of rental listings on the market sank to around 96,000 over the past four weeks, down from a previous five-year average for this time of year of 150,000. So, if rental income is rising and there is no shortage of potential tenants, why are investors shying away from the real estate market? Investment purchases are declining The number of investors buying dwellings has been falling since early 2022. Figure 1 shows the monthly number of loans secured for investment property purchases, which peaked at 21,663 in March 2022. As of January 2023, the volume of new investment […]

Hundreds of thousands of borrowers with fixed-rate mortgages face a bumpy road ahead this year as record-low fixed-rate loans expire and higher “revert” rates hit. Banks are calling it a “fixed-rate cliff”, and the worst thing you can do is wait for it to happen. There’s no need to panic; interest rates are simply returning to normal levels. However, if your fixed-rate loan is due to expire this year, your interest rate could potentially double. One thing is for sure: your best move is to look at your options now and tackle the so-called fixed-rate cliff head-on. Whether you break your loan term and refinance early or schedule loan settlement for when your current loan matures, there’s an opportunity right now to snag a better deal if you’re willing to invest a bit of time and effort. The fixed-rate cliff    An estimated $29.8 billion worth of fixed-rate mortgages expired in […]

Despite the ‘new normal’ of higher interest rates, 2023 will continue to offer valuable opportunities to real estate investors who are strategic in their property selection.   Property markets in trade exposed capitals, such as Darwin (pictured), Perth and Brisbane are well poised to return to a growth phase. The relentless string of rate hikes kicked off by the Reserve Bank of Australia (RBA) in May last year has had a significant impact on a number of residential property markets across Australia. However, despite economic headwinds, there are several key factors that continue to shape opportunities across some of our capital cities.       Here are the three drivers I believe will influence residential property investment opportunities in the year ahead. Driver 1: Affordability Interest rates have no doubt dampened activity across several of our residential markets. However, this impact has been far from uniform. The more affordable state capitals, in particular Perth, Adelaide and Darwin, […]

For aspiring home owners in 2023, the Real Estate Institute of Western Australia (REIWA) recommended getting financially fit before embarking on a house-hunting journey.  The new year usually marks the start of taking on new goals, and for a significant portion of Aussies, turning the Great Australian Dream of owning a home into a reality is usually in the cards.  But before hitting the market, REIWA advised home buyers to get their finances as lean as possible in order to be in top shape before applying for a mortgage.  “Start prepping now, even if you aren’t thinking of buying until mid-year, that way you’ll be in top shape by the time you want to apply for a loan,” according to the institute.  REIWA outlined six ways aspiring property owners can get financially fit before house hunting.    1. Manage your expectations  The institute acknowledged that the Reserve Bank of Australia’s (RBA) […]

One industry expert has advised investors of her non-negotiable practices they must employ heading into the new year.   According to Anna Porter, the principal of Suburbanite, 2023 presents a year of opportunity for savvy property investors clever enough to capitalise on market conditions. Falling under her umbrella of rules are practices such as budgeting, buffering, diversifying, and researching. She emphasised that budgeting is crucial as 2023 “is certainly not the year to fall victim to stretching yourself thin”. “The changes to the interest rate environment have already made a dent in the budgets of households all over Australia. Set your budget from the start and ensure you’re leaving enough room to be able to counter any further rate rises or unexpected expenses,” Ms Porter said.  At the Reserve Bank of Australia’s (RBA) final meeting for 2022, it opted to raise the cash rate by 25 basis points to 3.10 per cent, […]