Blog

Evidence is emerging that the national housing market downturn, which began in May 2022, is slowing.CoreLogic has reported that the nation's median property price fell 1.0% in January – the smallest month-on-month decline since June 2022.Meanwhile, while the national median price fell 4.1% in the October quarter, it fell only 3.2% in the January quarter. Here’s how much prices fell in each capital city in both the three months to January and the three months to October:Perth -0.1% (was -0.7% in October quarter)Darwin -0.4% (was 0.0%)Adelaide -1.5% (was -0.6%)Melbourne -3.1% (was -3.1%)Canberra -3.4% (was -4.3%)Sydney -3.9% (was -5.3%)Brisbane -4.8% (was -5.4%)Hobart -5.5% (was -4.1%)In other words, while prices are still decreasing, they're doing so at a decreasing rate.Reach out if you want to buy a property. Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about National downturn slowing although conditions vary from city to city

Despite the recent housing downturn, property prices are higher in most parts of the country than before the pandemic. As a result, deposit requirements are higher.Domain compared property prices in the December quarters of 2019 and 2022, and found that buyers needed tens of thousands of dollars more today if they wanted to buy a house and put down a 20% deposit.The increase in 20% house deposits for our four biggest cities was:Sydney $55,709 increase between 2019 and 2022Melbourne $25,995Brisbane $43,560Perth $25,697 While the deposit barrier is high, it’s not insurmountable.As an expert mortgage broker, I can potentially help you enter the market with a low-deposit loan. Generally, if your deposit is lower than 20%, you will need to pay lender’s mortgage insurance (which can be added to your loan). While it’s never nice to pay an added fee, it can be money well spent if it lets you buy a property several years ahead of schedule.Get strategic mortgage help. Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about How to overcome the deposit barrier

There was a steady decline in the amount of new residential construction that was approved during 2022, according to the latest data from the Australian Bureau of Statistics.A total of 188,765 home building approvals were issued in 2022, compared to 226,629 the year before – a reduction of 16.7%. Although approval numbers jumped around throughout 2022 – higher in some months, lower in others – the clear trend was down.“Much of the decline between 2021 and 2022 was the expected consequence of the end of the HomeBuilder grant in 2021,” Housing Industry Association chief economist Tim Reardon said.“The market was also cooling as the cost of construction rose, and the change in consumer preferences due to the pandemic desire for space, eroded.”Mr Reardon said builders are still working through a “significant pipeline of work”, and that the slowdown in building approval numbers “will not hit building activity on the ground until late 2023”.Need a construction loan? Let's talk. Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Home building approvals slow as construction costs rise

The rental market has turned decisively in favour of property investors, with the number of vacant rental properties plummeting by one-third over a 12-month period.Between January of 2022 and 2023, the number of rental vacancies across Australia fell from 47,977 to 31,592, a reduction of 34.2%, according to SQM Research. At the same time, the vacancy rate – which measures the share of untenanted rental properties – fell from an already-low 1.6% to just 1.0%.Vacancy rates differ from city to city, but are low throughout the country, ranging from 0.4% in Perth to 1.6% in Canberra.SQM Research managing director Louis Christopher said low vacancy rates were contributing to a “surge in rents”, which in turn was pushing up rental yields.“I believe would-be investors will be attracted to higher rental yields in later 2023, provided the cash rate peaks at below 4% [it's currently 3.35%],” he said.Get in touch if you need an investment loan.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Rental vacancies fall by a staggering 34.2%

While inflation continues to be worryingly high, it may have peaked.The Australian Bureau of Statistics’ latest data show that inflation rose from 6.9% in October to 7.3% in November.In early December, the Reserve Bank of Australia (RBA) forecast that inflation would "peak at around 8%" in December.If that’s the case, inflation may already be cooling – even though the next inflation announcement (of the December result) may show an increase on the previous period.Inflation is expected to decline in 2023 "due to the ongoing resolution of global supply-side problems, recent declines in some commodity prices and slower growth in demand", according to the RBA, before falling further in 2024, to "a little above 3%".The RBA has said that high inflation "damages our economy and makes life more difficult for people", so it’s determined “to re-establish low inflation and return inflation to the 2-3% range over time".Book a free appointment.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about RBA expects inflation to fall in 2023

Home building costs continue to rise sharply, but it appears the worst is behind us.Residential construction costs rose 11.9% during 2022, after climbing 7.3% in 2021, according to CoreLogic’s Cordell Construction Cost Index (CCCI).The 2022 result was the largest annual increase on record, apart from the period impacted by the introduction of the GST.However, the pace of growth appears to be slowing: prices increased 4.7% in the September quarter, but only 1.9% in the December quarter.CoreLogic construction cost estimation manager John Bennett said, in 2023, costs would be unlikely to rise at the same rapid pace as in the recent past, because rising interest rates and inflation have made consumers, builders and suppliers more cautious.Analysing the price increases, Mr Bennett said:Volatile timber prices are affecting the cost of structural timber and general timber productsPrices continue to increase for metal products, such as gutters, lintels and fixings, which are used for roofing and structural purposesPetrol price increases are affecting cartage and delivery costs, including for concrete and rainwater tanksGravel, aggregates and fill prices have increased, possibly affected by the rise in petrol pricesCosts have also increased for appliances and fittingsReach out if you need a building loan.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Growth in residential construction costs expected to slow in 2023

Many property investors enjoyed a big rise in their rental income during 2022.CoreLogic has reported that the median rent for an Australia investment property increased 10.2% during the year. The city-by-city breakdown was:Brisbane 13.4%Adelaide 12.9%Sydney 11.4%Perth 11.2%Melbourne 9.6%Hobart 5.3%Darwin 5.1%Canberra 4.3%During 2022, the national vacancy rate fell from 2.1% to 1.2%. To put it another way, the number of untenanted rental properties fell from 21 per 1000 to a very low 12. That forced tenants to compete harder, pushing up rents. "Rents are still rising in most capital cities and regional areas, with vacancy rates low," according to CoreLogic head of research Eliza Owen.Between September 2020 (when this period of rental increases began) and December 2022, Australian rental rates increased 22.2% – the largest increase in a 27-month period in recorded history.Get in touch if you need an investment loan.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Rents rise from 4.3% in Canberra to 13.4% in Brisbane

Refinancing activity is at ultra-high levels right now, as owner-occupiers and investors alike try to find home loans with lower interest rates as the Reserve Bank continues to raise the cash rate.Borrowers refinanced a record $19.5 billion of loans in November, the most recent month for which we have data, according to the Reserve Bank of Australia.By way of comparison, that was 20.4% higher than the year before and 88.2% higher than two years before. The Reserve Bank has hinted that at least one more rate rise is coming. In December, it said it wanted to "return inflation to the 2-3% target range over time" (it's currently 7.3%) and would “do what is necessary to achieve that outcome" – i.e. further increase the cash rate.So if it’s been a while since you took out your home loan, now would be a good time to think about refinancing.Contact me to get the ball rolling. I’ll be happy to crunch the numbers for you, so you can see if refinancing would be suitable for you and how much money you could save by switching to a comparable lower-rate loan.Want to compare interest rates? Let's talk.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Borrowers refinance a record $19.5bn of home loans