Blog

New research by the e61 Institute and PropTrack has revealed there's been a significant increase in relative stamp duty costs in recent decades.Back in the early 1980s, buyers in Sydney, Melbourne, Brisbane and Adelaide needed to do about one month's work to cover the cost of stamp duty, assuming they purchased a median-priced property and earned the average post-tax income. But as of 2023, it takes about six months’ work in Sydney and Melbourne, five in Adelaide and four in Brisbane.Last year, almost all buyers faced a stamp duty rate equivalent to at least 3% of the sale price, while, in the early 1990s, almost all buyers paid less than this amount. PropTrack senior economist Angus Moore said the two reasons stamp duty had become relatively more expensive were because property prices had grown faster than incomes and state governments had allowed ‘bracket creep’ to occur with stamp duty tax brackets.“Bracket creep happens, firstly, because the price brackets have been updated only infrequently and, secondly, because home prices have grown, often substantially, since the brackets were last set,” he said.“That means more properties have moved up the brackets and are now paying higher rates of stamp duty.” Need a home loan? Let's chat.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 Stamp duty costs rising due to ‘bracket creep’

The latest tranche of home loans data from the banking regulator, APRA, has revealed three interesting shifts in the mortgage market over the past year. First, there's been a meaningful rise in investor activity during that time. During the December 2022 quarter, 30.2% of new loans were for investment purposes; but in the December 2023 quarter, the share increased to 32.4%. There's been a corresponding decline in owner-occupier activity, which fell from 67.7% to 65.6%. Second, there's been a sharp decline in borrowing with a debt-to-income of 6 or greater (e.g. someone on a $100,000 salary borrowing $600,000 or more). This fell from a 11.0% share of new loans in December 2022 to only 5.6% in December 2023.Finally, the share of borrowing with a loan-to-value ratio of 80% or higher has actually increased, from 30.6% of new loans in December 2022 to 31.4% in December 2023.Whether you’re an owner-occupier or investor, I can advise you about your borrowing power and help you get a great home loan.Need a home loan? Let's chat.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 Investor activity rises, high-debt borrowing falls

Rents have increased in most capital cities over the past year and are likely to continue rising throughout 2024, according to a leading property data expert.Between the December quarters of 2022 and 2023, the median rent on realestate.com.au rose 11.5%. That included double-digit gains in Perth (20.0%), Melbourne (18.3%), Sydney (16.7%) and Adelaide (12.5%), as well as increases in Brisbane (9.1%) and Darwin (1.7%). By contrast, rents stagnated in Canberra (0.0%) and declined in Hobart (-4.8%).During the same period, the vacancy rate fell from 1.3% to just 1.1%. With rents growing and vacancies falling, this is potentially a good time to be a property investor. PropTrack's director of economic research, Cameron Kusher, forecast that the “tough rental market conditions” would continue.“We expect supply to remain tight and demand to stay strong, likely pushing rents higher,” he said.“Lending to investors trended higher over 2023, indicating that investors are returning to the housing market. However, many investors continued to sell, resulting in a relatively small pool of rental properties being available for the large number of people seeking accommodation. The rapid increase in Australia’s population exacerbated rental market challenges, as most people migrating to Australia become renters.”Talk to me about buying an investment 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 Why rents are expected to keep rising 

A significant number of borrowers are unclear about lender’s mortgage insurance (LMI), according to a recent survey of mortgage brokers by LMI provider Helia.The survey found that 85% of broker respondents think LMI can benefit buyers who want to get into the market earlier, while 70% believe it can also help renters who want to transition into ownership. However, 50% of respondents feel borrowers generally don't properly understand LMI.LMI is a form of insurance that protects the lender in case the borrower defaults on the mortgage and the lender can't recover the loan from selling the home. The premium varies, depending on the size, type and location of the property.Lenders generally insist borrowers take out LMI if they want to buy a property with less than a 20% deposit – although, for some professions, such as doctors and lawyers, it’s possible to buy a property with a smaller deposit without paying LMI.The upside to using LMI is you can enter the market with a smaller deposit; the downside is the cost.I’d be happy to discuss both the potential benefits and costs, so you can make an informed decision about whether LMI is right for your personal situation.Confused about LMI? Let’s talkHit 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 50% of borrowers may not understand lender’s mortgage insurance

There's been a significant increase in first home buyer activity over the past year, based on the latest data from the Australian Bureau of Statistics.There were a total of 9,491 owner-occupier first home buyer mortgages issued across Australia in December 2023, which was 12.9% higher than the year before.First home buyer activity rose in six of the eight states and territories, with Queensland and Tasmania being the exceptions to the rule. While it can be challenging to buy your first home, this data shows it’s not impossible. Here are four tips to get on the property ladder:Look for ways to decrease your spendingCheck whether you're eligible for the First Home Guarantee or Regional First Home Buyer GuaranteeConsider asking your parents or another relative to guarantee your home loan (so you can drastically reduce or even eliminate your deposit requirement)Contact me, so I can explain your options and coach you through the processGet in touch if you need a home loanHit 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 First home buyer loans rise 12.9%

Many economists believe the Reserve Bank will start cutting interest rates in the final quarter of 2024. So if you're thinking about entering the market, should you buy now or wait for those potential rate cuts to occur? To answer that question, it can be helpful to consult long-term data. During the decade to January 2024, Australia's median property rose 80.1%, according to PropTrack. Prices rose faster in the combined regions than the combined capital cities (92.5% vs 75.7%), while house growth exceeded unit growth (89.4% v 44.4%). But the general trend for all these categories was the same – up. Domain's chief of research & economics, Nicola Powell, believes buyers should take a longer-term view and not get too hung up about how the market is currently performing. “When you’re purchasing a property, it’s for a long-term investment and you are going to ride multiple property cycles, and that’s how you build financial wealth. So if I would give any advice, it would be to buy when it’s right for you. Housing markets are complex and often impossible to predict.”Ultimately, the question or whether to buy now depends on your personal situation and goals. For some, now will be the right time; for others, it will be better to wait. I'm happy to have a chat and crunch some numbers for you, so I can present personalised loan options for your situation.Get in touch if you need a home loanHit 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 Should you buy now or wait for a potential rate cut?

Becoming a better budgeter can help you save more, invest more and get ahead on your home loan.To stay on top of your finances, there are two broad approaches you can take.The first is to plan how much you’ll spend on each category (groceries, entertainment, etc) each month. If you stick to your budget, you’ll know in advance how much you’ll save.The second approach is to throw out the budget and focus on saving instead:Decide how much money you want to save each monthSet up an auto-transfer to move this amount of money from a transaction account to a savings account whenever your salary gets paidSpend whatever is left in the transaction account, however and whenever you likeThe first approach suits people who want to pay close attention to their money, while the second is for people who want to ‘set and forget’ their savings.Whichever approach you take, a good place to begin is to review your last 12 months of expenses, to see how much you’re spending and on what things. You can use that information to identify areas of wastage and set savings targets. Talk to me about your borrowing powerHit 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 budget better