Stamp Duty Changes Good for Property?

Graeme Salt Broker 2, News Leave a Comment

‘Be careful what you wish for’ goes the old adage. Nowhere is the more true than in proposed changes to Stamp Duty which may have huge impacts on the way the property market operates. Changes proposed by NSW (and likely to be followed by other states will see stamp duty phased out and replaced by a (smaller) property tax paid …

What’s driving interest rates?

Graeme Salt Broker 2, News Leave a Comment

Once upon a time, once-a-month, we waited on the Reserve Bank to announce its cash rate and that determined mortgage rates.  But now there’s a new mechanism of determining interest rates and it impacts how much we pay on our home loans. The RBA has already cut the cash rate to 0.25 per cent (with more to come) at the …

The end of repayment holidays – are we going to see lots of borrowers forced to sell their homes?

Graeme Salt Broker 2, News Leave a Comment

This month, the Australian Banking Association (ABA) released figures showing that the number of mortgages under deferral had dropped to 270,000 meaning that almost half of the households receiving deferrals had started repaying their mortgage and that 82,000 SMEs had also started repaying. Three months before, 470,000 (1 in 11) Australian households and more than 200,000 (1 in 8) small …

Has property reached the bottom?

Graeme Salt Broker 2, News Leave a Comment

Over the years, Australia’s population growth of 250-300,000 a year has been one of the drivers of the property market. Now, with international borders closed, many are wondering if the property market will go into hibernation. Undoubtedly, cutting off immigration and international students will have an impact on property market. But what many commentators have missed is the number of …

Government to make borrowing easier – but how much?

Graeme Salt Broker 2, News Leave a Comment

This week, Treasurer Josh Frydenburg, announced changes to lending rules designed to make it easier to get a loan. Treasurer Frydenburg announced the removal of many Responsible Lending obligations that have forced banks to pore over loan applicants’ living expenses and then decline a loan because a would-be borrower was perceived to spend too much money on the gym or …

Closer to the city? Prices down. The Burbs & beyond? Prices up

Graeme Salt Broker 2, News Leave a Comment

A two-speed market is developing for both rentals and owner-occupied properties Research from Corelogic showed that rents have fallen by as much as 10 per cent in certain inner locations since the onset of Covid-19, but that locations some distance from the CBD have enjoyed rental growth. With poor rental returns, it’s difficult to see investors making a bee-line for …

Property to rise instead of fall?

Graeme Salt Broker 2, News Leave a Comment

Author – Graeme Salt What happens if the so-called fiscal cliff does not exist?  What happens if those who had a mortgage repayment holiday due to Covid-19 can actually recommence making loan repayments? Given that Australia’s property market has held up pretty well, many economists are now softening their predictions on the property market; predicting modest falls due to the …

Aussies now spending in suburban locations

Graeme Salt Broker 2, News Leave a Comment

Covid-19 has changed our spending patterns and will have a profound impact on our investments. With so many of us now working from home, in suburban locations, the clever money is in the burbs rather than the CBD. SGS Economics estimates that around $400m in spending on incidentals such as coffees, lunches and alcohol has been diverted from the Sydney …

How Covid-19 Transformed the Property Market

Graeme Salt Broker 2, Knowledge Centre Leave a Comment

‘Life will never be the same again.’  Its been said non-stop since Coronavirus, but there is no doubt it has accelerated long overdue changes in the property market. Across the board, property-related professions are adapting and thriving despite the virus. Over the weekend, 73 per cent of Australia’s capital city auctions were successful, according to CoreLogic. Of these, Melbourne achieved …