Expecting a property crash? There’s Buckley’s chance Looking to pick up a property on the cheap? You have missed the boat Think property will grow in 2021? You are probably right Are we looking at property bubble? That’s a bit of a stretch None of us will forget 2020. And while it has been agony for most of us, it …
‘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 …
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 …
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 …
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 …
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 …
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 …
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 …
Once-upon-a-time we used to watch the Reserve Bank like a hawk; if it cut the cash rate, we would just wait for our bank to pass the rate cut on (or not) Now the Reserve Bank is doing something completely different to keep home loan rates down (some as low as 1.99 per cent). The Reserve Bank has offered the …
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 …