Denis Mulcahy

Property investors may be motivated by different goals. With changing market conditions and some areas seeing slower price growth, some investors may be placing greater focus on rental yield and cash flow rather than capital growth alone. This shift may influence both property selection and financing decisions. If you’re considering investing in property, here’s what to know about rental yields and why they matter. What is rental yield? Rental yield is the annual rent generated by a property, divided by its market value and expressed as a percentage. It’s a commonly used measure to help investors assess a property’s income potential.For example, if a unit rents for $500 per week, it generates $26,000 in annual rent. If the property is valued at $600,000, the gross rental yield would be 4.3%.The two main types of rental yield are:Gross rental yield is calculated before costs. It enables investors to quickly compare income potential across different properties in various locations.Net rental yield is calculated after costs (such as body corporate, property management fees and insurance). This is usually the figure investors are most interested in, because it provides a clearer picture of the property’s income after expenses, although it doesn’t account for all costs such as loan repayments or tax. What’s a ‘good’ rental yield? A higher rental yield generally indicates stronger rental income relative to a property’s value. For context, average rental yields across Australia’s capital cities were around 3% for houses and 4.3% for apartments as of March 2026.Some investors use yield ranges as a general guide, but what’s considered suitable can vary widely depending on individual goals, risk tolerance, and market conditions.Examples of areas with high rental yields include:Echuca, Victoria – houses 10.6%, units 13%Newman, Western Australia – houses 10.3%, units 12.4%Pegs Creek, Western Australia – houses 11.4%, units 10.2% Factors affecting rental yield Rental yield can vary depending on a range of factors, including property type, location, and broader rental and property market conditions. ➢ Property type Apartments often have higher rental yields than houses, as they may be more affordable to purchase and can generate relatively strong rental income. However, they may also come with ongoing costs such as strata or body corporate fees.Houses, on the other hand, may have lower rental yields, but are sometimes associated with stronger potential for long-term capital growth. ➢ Location Properties in some regional areas may offer higher rental yields than those in metropolitan areas, often due to lower purchase prices and, in some cases, limited rental supply. However, these areas may also experience higher vacancy rates, and price growth can be more variable. ➢ The rental market Changes in rental supply and demand, such as an oversupply or shortage of rental properties, … [Read more...] about Why investors are focusing on rental income in 2026

For many homeowners, timing can be one of the challenges when purchasing their next property. If you’re planning to sell your current home to fund your next purchase, a bridging loan may be worth considering. Mortgage brokers have reported increased interest in bridging finance, as some buyers consider alternative ways to navigate higher living costs and rising interest rates.Here’s how this type of finance works, along with some key considerations to keep in mind. What is a bridging loan? A bridging loan is a short-term loan that may allow you to buy a new property before selling your existing one. It’s designed to ‘bridge’ the gap between the two transactions.In essence, a lender can use the equity in your current property to support the purchase of your next home.In competitive markets, where housing supply is tight and properties can sell quickly, some buyers consider bridging finance as a way to act sooner.Making an offer ‘subject to the sale of your existing property’ may be less appealing to some vendors, but bridging finance may offer a way around this. Instead, you could apply for bridging finance and structure your offer ‘subject to finance’, which in some cases may be viewed more favourably by vendors.Bridging finance may also be worth exploring if you’re looking to reduce the likelihood of needing temporary accommodation between selling your current home and buying your next one.A range of homeowners use bridging finance, including those looking to upsize, downsize or relocate. How do bridging loans work? Bridging loans are often structured over a period of around six to 12 months, although in some cases they may only be needed for a few weeks if the existing home sells quickly. It’s also worth noting that lenders could structure bridging loans in different ways.When you apply to a lender for a bridging loan, they temporarily finance both properties – the one you intend to sell and the new property.The ‘peak debt’ is the combined loan amount of both properties during this period. This may include the remaining balance on your existing home loan, the purchase price of your new property, and associated buying costs.Repayments are generally interest-only, with interest sometimes added to the loan balance (known as capitalisation) until the sale is completed.Once your existing home is sold, the proceeds are typically used to reduce the loan, leaving a standard mortgage secured against the new property. Reasons you might use a bridging loan Bridging finance comes with risks, but it may be worth considering if:You find the right property for your needs before your existing home sellsYou want to avoid temporary accommodation between sale and purchaseYou need options in a fast-moving property market where demand outstrips supplyYou have a decent amount of equity in your existing home. Potential drawbacks to consider Possible downsides to keep in mind:Interest rates for bridging loans … [Read more...] about Buying before you sell? Bridging loans explained

With interest rates rising, many borrowers are taking the time to review their home loan arrangements. A review of your loan structure may assist in managing repayments, subject to your individual circumstances. Offset accounts and redraw facilities are features offered on some home loans. When used appropriately, they may help reduce the interest payable and overall loan costs, depending on individual circumstances. Offset accounts An offset account is a transaction or savings account that’s linked to your home loan. The money you have in this account ‘offsets’ your loan balance when your lender calculates interest.So, if your loan balance is $500,000 and you have $50,000 in a 100% offset account, the bank will only charge you interest on $450,000.You generally don’t earn interest on the balance held in the offset account. Instead, the money is actively reducing interest charges.Key benefits:Interest savings. The balance in the offset reduces the interest charged on your home loan.Flexibility. Funds aren’t locked away. You can access the money immediately for daily transactions and ATM withdrawals.Tax-effective savings on interest. Interest savings are generally not treated as taxable income. However, tax outcomes can vary depending on your individual circumstances, so it’s important to seek advice from a qualified tax professional. Offset accounts may provide an effective after-tax benefit similar to your loan interest rate, depending on your circumstances.Help reduce the loan term over time. By reducing interest, a bigger chunk of your regular repayment goes towards the principal, reducing the overall mortgage term.Good for investors. For investment properties, using an offset account instead of a redraw facility ensures that if the money is withdrawn, the tax deductibility of the loan interest is maintained.Potential drawbacks:Potentially higher fees. If the offset account comes with a loan package, there may be annual fees attached.Potentially higher interest rates. In some instances, loans with offset accounts may come with higher interest rates.Limited availability. Offsets are usually attached to variable-rate loans, not fixed-rate mortgages. Redraw facilities With a redraw facility, you can make extra repayments in addition to your minimum fortnightly or monthly home loan repayment. The extra funds reduce the loan balance, which lessens the amount of interest you pay. You can redraw the funds in future as required.So, if your loan balance is $500,000 and you repay an extra $50,000, the new loan balance is $450,000. The lender will charge interest on that amount.Key benefits:Interest savings. By making extra repayments, you reduce the principal loan balance and the interest payable.Help reduce the loan term over time. Making extra repayments regularly may help you to pay off your mortgage sooner.Repayment holidays. If you are ahead on repayments, some lenders may allow you to reduce or pause repayments, … [Read more...] about Offset or redraw: Things to consider as rates rise

With rising interest rates, a diverging property market, and ongoing economic uncertainty, many homeowners and investors are inclined to reassess their options. The housing market across the country has split into different speeds. Perth’s property prices continue to sprint skyward, and Brisbane, Adelaide and Hobart are also posting solid gains.Meanwhile, Sydney and Melbourne have seen prices flatten, as higher interest rates and weaker buyer sentiment take hold.So what does it all mean for you? Let’s break it down.Interest rate newsInflation is starting to ease slightly, with the Consumer Price Index (CPI) rising 3.7% over the past year to February, down a touch from January.At the same time, underlying inflation (as represented by the trimmed mean) remains steady at 3.3%.Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate to 4.10% at its March meeting, many lenders passed on the 0.25% increase in full. It marked the second consecutive cash rate hike of the year.There’s now widespread talk of more cash rate increases to come, as the global energy shock in the Middle East threatens to push Australia’s inflation towards 5%. Some economists are even anticipating three more interest rate hikes in May, June and August, bringing the cash rate to a level not seen since the global financial crisis (GFC).If the RBA does increase the cash rate again in May, the 75 basis point increase since the start of the year would add roughly $239 a month to repayments on a $500,000 home loan, or $478 a month on a $1 million loan.Treasurer Jim Chalmers has acknowledged the pressures faced by Australians grappling with higher fuel prices and cost of living pressures, and noted savings will be delivered in the May budget.The next cash rate decision will be announced on 5 May.Home value movementsDwelling values across the nation rose 0.7% in March, and 2.1% over the first quarter of 2026. Overall, the pace of gains is easing, dropping from a 2.8% increase in the final quarter of 2025.Perth’s property prices surged 7.3% over the first quarter of 2026, while Melbourne saw values drop -0.9% from their November high, and Sydney’s prices fell -0.4%.The mid-sized capitals and Darwin are recording growth of 1.2% or more on a month-by-month basis, while Sydney and Melbourne experience declines.“Since the end of November 2025, Melbourne values have retreated by -0.9% and the Sydney market is down -0.4%,” said Cotality research director Tim Lawless.“The softer trend in values coincides with falling auction clearance rates and a pickup in advertised supply, providing buyers with more choice and less urgency at the negotiation table.”In Perth, home values are accelerating in the face of higher interest rates and lower sentiment.“In dollar terms, the 7.3% rise in Perth home values over the quarter has added approximately $69,000 to the median dwelling value,” Mr Lawless said.“Clearly this pace of growth is unsustainable, but continues to be … [Read more...] about Welcome to our April Newsletter

Buying your first home is an exciting milestone, but it can also feel overwhelming when everything is new and unfamiliar. There are many moving parts in the home-buying process, and it can be difficult to know where to start. The good news is that you don’t have to figure it all out on your own. A mortgage broker can guide you through the process and handle much of the heavy lifting from comparing lenders and interest rates to supporting you at every stage of your home loan journey.It’s no surprise that the majority of Australian borrowers choose to work with a mortgage broker. In fact, 77.3% of all new residential lending in the September 2025 quarter was facilitated by mortgage brokers.Here are some reasons many first home buyers choose to work with a mortgage broker. Understand your true borrowing power One of the first steps in buying a home is understanding your borrowing capacity – that is, how much a lender may be willing to lend you.While online calculators and AI tools can provide a rough estimate, they may not fully take into account your individual financial circumstances and long-term goals.As your mortgage broker, we can get a clear picture of your income, expenses, liabilities and assets so that we can estimate how much you may be able to borrow and which loan options could suit you.We can also organise pre-approval for your finance, so that you’re ready to go when you find the right home. Helping you explore available options As a first-time buyer, you may be entitled to various schemes or government incentives to help with your purchase. Examples include the Australian Government 5% Deposit Scheme, First Home Super Saver Scheme, the Help to Buy Scheme, and the First Home Owner Grant.As your mortgage broker, we’ll explain your options and whether you’re eligible for any government schemes or incentives. We may also discuss different ways to strengthen your application, such as the possibility of a family guarantor arrangement.Mortgage brokers typically work with a wide range of lenders, from major banks to smaller providers, and can help compare loan options based on your financial circumstances and goals. Tailored advice for first timers As your mortgage broker, we’ll be with you each step of the buying journey, from pre-approval through to settlement and beyond.The 2025 Helia Spotlight report found the top reason home buyers are turning to mortgage brokers to help them navigate the complex property market is for their knowledge and experience. We can explain confusing jargon and ensure you understand the true cost of the loan.Ready to take the first step?By using a mortgage broker to understand your borrowing capacity, handle the paperwork and get your finance in order, you can focus on the fun parts of buying your first home.If you’re thinking of buying your first home, or would like to talk through your potential options, get in touch today! Let’s turn your home ownership dream … [Read more...] about Why many first home buyers choose to work with a mortgage broker

With interest rates rising in recent months, many Australians have seen their mortgage repayments increase. As a result, more homeowners are starting to ask whether refinancing their home loan could help them reduce costs or improve their loan structure. In fact, refinancing activity has surged. Last year, more than 640,000 homeowners switched their home loan, representing a 20 per cent increase compared to the previous year.So, what exactly does refinancing involve, and how do you go about doing it? Reasons to refinance Refinancing involves taking out a new home loan to replace your existing one, either with your current lender or with a different provider. Once approved, the new lender pays off your existing loan and establishes the new mortgage in its place.Common reasons to refinance include:To access a more competitive rate.To potentially reduce your mortgage repayments.To change loan terms – for example, a shorter loan term may help you pay off your loan sooner, although the repayments may be higherTo access available equity – for renovations, debt consolidation or for other big-ticket expenses.To change your loan structure – e.g. from variable to a fixed-rate mortgage.To access interest-saving loan features like offset accounts or redraw facilities. What’s the process? The refinancing process is similar to applying for a new home loan, but it can feel much simpler when you know what to expect. Here’s how it typically works:1. Review your goalsStart by chatting with your broker about why you’re looking to refinance – whether it’s to get a more competitive rate, access equity, or improve your loan features. We can also help you weigh up the potential costs involved, such as valuation fees, exit costs, or break fees if you’re on a fixed rate.2. Compare your optionsWe’ll compare a range of lenders on your behalf to help identify loan options that may suit your needs and circumstances.3. Get your documents readySimilar to your original application, you’ll need to provide supporting documents like proof of identity, income details, employment information, and a summary of your assets and debts.4. Submit your applicationOnce everything is ready, we’ll submit your application. The lender will usually arrange a valuation of your property, and if you’re borrowing more than 80% of its value, lenders mortgage insurance (LMI) may apply.5. Approval and paperworkIf your loan is approved, you’ll review and sign the final documents before the new lender arranges to pay out your existing loan.6. Settlement and next stepsOnce your old loan is paid out, your refinance is complete. From there, you may be able to benefit from a more competitive rate, improved features, or access to available equity to support your financial goals. Can I stay with the same lender? If you’re happy with your current lender, you can absolutely stay with them – especially if your loan still suits your needs and you’re comfortable with … [Read more...] about What happens when you refinance your home loan?

When it comes to buying an investment property, you don’t necessarily need to limit yourself to your own backyard. Looking beyond your local market, including interstate, can open up new opportunities when the timing is right. Often referred to as “borderless investing”, this approach allows you to tap into growth in different regions.However, investing in a different state comes with its own considerations. Understanding how it works, where the opportunities may be, and what to watch out for can help you make more informed decisions.Here are three reasons borrowers are interested in interstate investing. ❖ Diversify your property portfolio One way some investors attempt to manage risk with their investments is to diversify. By spreading your investments across different locations, you’re not relying on just one market. If one area slows down, another might still be performing well. It may be a helpful way to balance your portfolio over time, reduce the impact of local downturns, and tap into a wider range of growth opportunities.That said, diversification doesn’t remove risk entirely. Property markets can shift due to factors like economic conditions, housing supply and demand, and changes in interest rates. ❖ Seize opportunities Investing interstate can give you access to markets that may be more affordable or experiencing stronger growth at different points in the cycle. Because conditions can vary across states, looking beyond your local area may help uncover opportunities you might not find closer to home.For example, some markets have recently outperformed others. Perth, Brisbane and Adelaide have seen solid growth over a recent rolling quarter, with housing values rising 6.8%, 4.8% and 4.3% respectively, while Sydney and Melbourne recorded slight declines of -0.1% and -0.4%.This highlights how opportunities may emerge within different parts of the country at different times. That said, markets can shift, and past performance isn’t always an indicator of what’s ahead. ❖ Benefit from tax perks Another reason some property investors consider buying interstate is the potential difference in land tax thresholds and rates across states or territories.Land tax is an annual levy based on the value of your investment property (excluding your principal place of residence). This tax is managed independently by each state or territory (not applicable in the Northern Territory).Keep in mind that Australian stamp duty rates and thresholds may also differ by state or territory.Land tax laws are complex and change frequently. As tax outcomes depend on individual circumstances, it may be worth speaking with a qualified tax professional before making decisions based on tax considerations. Key considerations to help balance the risks and rewards Before investing interstate, it’s important to take a step back and assess both the potential upsides and the risks involved.With that in mind, here are some … [Read more...] about 3 tips to navigate the risks and rewards of interstate investing

With autumn now underway, many prospective buyers may feel like turning over a new leaf with a home or investment property purchase. This time of year can present unique opportunities. There is often less competition compared to the busy spring market, and some sellers may be more motivated to secure a sale before winter, which may create more favourable conditions to negotiate.As interest rates and property market conditions continue to evolve, staying informed is key. In this update, we take a closer look at the latest interest rate changes and what’s happening across the property market, so you can better understand the trends shaping today’s lending environment.If you’re looking to purchase or considering refinancing, get in touch and we’ll compare the market for you. Interest rate news The Reserve Bank of Australia (RBA) increased the cash rate to 4.10% at its latest meeting, following a rise in February.The move reflects ongoing concerns that inflation may remain above the target range for longer than expected. While the Consumer Price Index (CPI) held at 3.8% in the 12 months to January, more recent data suggest price pressures have picked up again.RBA governor Michele Bullock said the decision was largely driven by stronger-than-expected demand in the economy, supported by a resilient labour market and solid economic growth.“The data suggests there is slightly more excess demand in the economy than we thought in February, and inflationary pressures are therefore somewhat greater,” she said.While rising fuel costs linked to conflict in the Middle East are expected to contribute to inflation, they were not the primary reason for the rate increase.The RBA has indicated it will continue to monitor economic conditions closely and adjust policy if needed.With interest rates shifting, it may be worth to review your home loan and consider whether your current rate remains competitive. If you’re curious about your options, give us a call – we may be able to find a more competitive rate or renegotiate your home loan with your current provider.The next cash rate decision will be announced on 5 May. Home value movements February’s interest rate hike did little to dampen property prices in many Australian markets, with national dwelling values increasing 0.8% in February. Across the country, we’re seeing property values diverge.Perth continues to show strong growth, with prices up 2.3% in February, adding $22,500 to the median property value over the month. Stock in the Western Australian capital is nearly 50% below the five-year average.Brisbane, Adelaide and Hobart also posted solid gains throughout the month, each recording a rise of more than 1%.Sydney and Melbourne’s prices were flat in February, compounded by increasing interest rates and weaker sentiment. Sydney’s prices were down -0.1% over the rolling quarter, while Melbourne’s were down -0.4%.Cotality research director Tim Lawless said that while Sydney and … [Read more...] about Welcome to our March Newsletter