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The huge mistake most mortgage holders don’t know

February 28, 2021

Adapted from: The huge mistake most mortgage holders don’t know. Nicole Pedersen-McKinnon| Sydney Morning Herald| 27 February 2021

As the coronavirus pandemic hit last year and budgets threatened to break, CBA sent a letter to mortgage holders saying their repayments would be automatically cut to the minimum.

Sounds helpful, doesn’t it? Yes, it eases the purse-string pressure but… it also earns CBA a bucket load more interest. Every loan on its books reverts to the full contracted, say, 25 or 30-year term.

You should get in touch with CBA and actively stop this from happening.

The difference between your minimum repayments and actual payment goes directly into your mortgage and effectively forms a redraw component.

However, relying on redraw can be risky.

ME Bank last April controversially recalculated and reduced the money that was available for redraw from loans. At about the same time, CBA took the minimum repayment move.

ME quickly backed down amid a public backlash.

Essentially, there is no guarantee that excess money you have sitting in your mortgage will be available for you to take, should you want it. It is in many loan contracts that this can be frozen if you get into financial difficulty.

There is also a strategic reason not to park one cent of extra money directly within a home loan: it pays down the loan balance and could cut you out of potential tax deductions in future. If you later decide to turn that property into an investment, your deductions would be based on your lowest loan balance.

So, what is the answer?

Instead, keep all additional repayments in an offset account that runs alongside your mortgage but gives you an identical interest saving.

This way, you keep your options open in case you want to move to a new home down the track but retain your existing property to rent.

Better still, the deposit for your next home is sitting right there in the offset – readily accessible.
You can take the advantage further by parking in multiple offset accounts every dollar you have to your name.

You can sometimes have up to 10, individually named offset accounts so that your funds do not get mixed up. Things such as school fees, holidays, new couch/kitchen and your emergency fund, which should preferably be six months’ salary. This way you can use each of those dollars, effectively twice: both for their intended purpose and to save you loan interest.

If you park $30,000 in these offsets at all times against a $400,000 mortgage, at an average long-term interest rate of 5 per cent, you would save more than $66,000 in interest and shave almost 2.5 years off your loan term – for free.

Refinance your loan in seven days?

February 28, 2021

One small lender reckons you can switch to them quickly – and at much lower rates thanks to new technology.

Open banking promises to be a game-changer in the way we can all better manage our money.

In essence, it’s a simpler and more streamlined way to share your banking data with approved lenders and financial technology companies, which could in turn help you find a better deal on your banking products and switch lenders more easily.

WHAT IS OPEN BANKING?

As technology develops, transactional banking is becoming almost exclusively online and ‘tap-and-go’ transactions are replacing cash. As open banking comes into play, you will be able to get a far clearer picture of how you spend and manage your money.

Thanks to online features, open banking will allow you to share your transaction history, account balances and income information with third parties that have been accredited by the Federal Government’s ACCC (Australian Competition and Consumer Commission).

These accredited and authorised organisations can be banks and lenders, financial technology companies who provide tools such as a budgeting app and down the track, potentially brokers like us. And you can control which party has access to your data and how they can use it.

This means that applying for a new account or signing up to a new credit card will be easier. Without open banking, you need to take the time to gather transaction history, evidence of income and ID information, and then submit it. With open banking you can send this information online in a few moments, potentially saving a significant amount of time and hassle.

It’s all about giving consumers control over their data, so you’ll be able to give consent to share information and then amend that consent when you want to. You’ll also be able to give more than one type of consent and provide, withdraw or amend these at any time.

A HOME LOAN APPLICATION GAME CHANGER.

When applying for a home loan, supplying some of the details on your spending can only be estimated at best. This can lead to inaccuracies and not allowing lenders to get a true picture of your finances.

With the rollout of open banking, it will mean you will be able to supply all this information with just a few clicks from all your accounts. This includes transaction accounts, term deposits, home loans, investment loans, personal loans, joint accounts, closed accounts, direct debits, credit cards and more. It’s comprehensive, accurate and up to date.

MAKING THE SWITCH.

Even if you find a loan that might be more appropriate for you, many people don’t make the switch because it feels too difficult. The thought of changing all their direct debits is so inconvenient they stay with their current lender, which could be costing them more.

Open banking embraces new technology and has the potential to make this a lot faster and hassle-free, making the idea of switching to a new loan much more appealing.

IS IT SAFE AND SECURE?

Open banking isn’t just about making it easier to share data, it’s about making it more secure. You don’t have to reveal your username and password to give access to your accounts, as can happen now.

Rest assured, the rules and regulations for open banking have been developed by the ACCC – the Government’s consumer and corruption watchdog – which requires a strict and comprehensive approval process to satisfy it that a bank or organisation has all the right security and privacy measures in place to safeguard your data.

COMPARING PRODUCTS.

While open banking might make it easier to find more appropriate options, comparing and understanding the pros and cons to decide which one is right for you is still tricky. At Origin Finance, we’re always here to make sure you can identify the loan that’s the most appropriate for you.

Open banking may be able to tell you about your finances right now, but it still can’t take into account your goals and what your life may look like in two, five or ten years’ time. Things like planning for a bigger family, downsizing as the kids move out, and growing and diversifying your property investments all need to be considered and factored into any decisions. And that’s where Origin Finance can help. If you want to have a chat regarding your individual circumstances, and how they influence your home loan situation, please get in touch.

Investors Look at Options in Downward Market

March 31, 2020

REAL ESTATE RENEE MCKEOWNMON 30 MAR 20

Investors are looking at their options with homes pulled off the market, leases extended and auction clearance rates dropping in-line with Covid-19 economic uncertainty.

Forty per cent of auctions were pulled from the market and clearance rates dropped to 51.4 per cent on the weekend according to Corelogic.

Buyers and sellers were urged to be cautious by the industry with vendors postponing sales, tightened bank lending, rising unemployment and a fear of “knee-jerk” transactions.

Announcements from the government further clouded the real estate market with landlords expected to give rent relief.

However wage subsidies and loan deferrals could ease their economic burden and the Australian share market rallied 7 per cent at the close of business Monday.

Domain senior research analyst Nicola Powell said sellers and landlords were weighing their options and what to do next in a downward market.

“We have seen new [for sale] listings start to trend lower, indicating vendors are taking a cautious approach as the economic outlook is uncertain,” Powell said.

“We are also seeing a lift in rental listings.

“Investors that had their properties as short term leases are now opting for longer leases because we’ve seen a dive in tourist numbers.

“A lot of overseas travellers have also decided to go home and left their accommodations.”

Powell said there was a massive sweeping change that affected the real estate market last week.

“From the announcement that happened mid last week a lot of auctions shifted to private treaty,” Powell said.

“Of those going on auction on 28 March [listed on Domain] we saw a 54.7 per cent change. Only 10.3 per cent went to virtual auctions.

“Three per cent of auctions were brought forward to before those [social distancing restriction] changes came into place.”

The government imposed restrictions which banned real estate auctions and open-for-inspections starting March 28.

It was set to be the busiest week of the year but the disruption saw only 2,599 actions go ahead from the originally scheduled 3,203 across combined capital cities according to Corelogic.

Auction clearance rates

City	Clearance Rate	Auctions	Clearance rate last year	Auctions last year
Sydney	47.3%	1,273	54.3%	801
Melbourne	58.6%	1,517	52.1%	978
Brisbane	32.5%	184	33.5%	195
Adelaide	28.1%	111	40.9%	24
Perth	30%	30	40.9%	24
Canberra	64.7%	90	39.6%	57
Tasmania	NA	8	NA	3
Combined	51.4%	3,203	50.9%	2,164

Source: Corelogic Market Activity 29 March 2020

The Corelogic analysts said the surge in withdrawn auctions was anticipated, considering the rising level of uncertainty and the shift towards remote auctions.

“Considering the rapid transition to on-line auction formats, some agents reported technical challenges and connectivity issues; no doubt many of these challenges will be resolved with the benefit of more time to prepare,” they said.

“We also saw a surge in the proportion of properties sold prior to auction, lifting from 22 per cent of the preliminary collection last week to 36 per cent this week. ”

Overall they expected a substantial drop in new property listings, regardless of the selling method, as buyers and sellers retreat to the sidelines and wait for some certainty to return to their decision making.

Australian banks will defer loan repayments for small businesses affected by COVID-19 for six months.

March 31, 2020

20 March 2020.

Australian Banking Association CEO Anna Bligh today announced a small business relief package from Australia’s banks.

“This Assistance Package will apply to more than $100bn of existing small business loans and depending on customer take up, could put as much as $8 billion back into the pockets of small businesses as they battle through these difficult times,” Ms Bligh said.

“Small businesses are the most vulnerable part of the economy and present the most pressing need for assistance. “
ABA CEO Anna Bligh

“This is a multi billion dollar lifeline for small businesses when they need it most, to help keep the doors open and keep people in jobs,” Ms Bligh said.

“Banks are putting in place a fast track approval process to ensure customers receive support as soon as possible.

“Australia’s banks have supported the country through difficult times in the past and continue to do so.

“While this is first and foremost a health crisis, this pandemic has begun to have serious impacts across the economy, with small businesses beginning to feel the devastating effects.

“Over the last few days banks have worked closely with the Treasurer and the Government to identify measures to support the economy through this crisis.

“Small businesses are the most vulnerable part of the economy and have the most urgent need for assistance.

“Small businesses employ 5 million Australians and this package is designed to help them keep doing just that.

“Small businesses can rest assured that if they need help, they will get it. Banks are already reaching out to their customers to offer assistance and packages will start rolling out in full on Monday,” she said.

Any small business who has not already been contacted should contact their bank to apply.

Banks have developed this Small Business Relief Package following discussions with APRA and ASIC to provide the appropriate regulatory treatment.

The package is subject to authorisation by the ACCC.

ENDS

Housemate horror: How your flatmates affect your mortgage rates

March 3, 2020

Kilian Padstow| The New Daily| 25 February 2020

https://thenewdaily.com.au/finance/your-budget/2020/02/25/housemate-credit-rating-mortgage/

Share house living is common practice among money-conscious people, but research shows picking bad housemates could cost Australians almost $180,000 in later life.

The exorbitant expense arises because renters typically share the responsibility for paying bills and rent on time.

This means if one person misses the due date – or simply doesn’t pay – it will hurt their housemates’ credit ratings.

With mortgage rates ranging anywhere from 2.8 to 4.8 per cent, much can hinge on those ratings.

For an average-sized mortgage ($357,000), an additional 2 per cent would cost a borrower an extra $177,607 over 25 years, according to ratings agency Credit Simple.

That’s an extra $7104 every year.

Although not everyone will be forced to pay quite that much, Credit Simple CEO David Scognamiglio said it highlights the importance of picking good housemates.

“The odd missed bill adds up,” Mr Scognamiglio said.

“What seems like a harmless slip up can come back to bite you in the future – whether it was you or your flatmate handling the share house finances.”

What’s more, the black marks housemates leave on your credit rating will remain there for five years.

Protecting your credit rating

Anthony Justice, chief executive of online mortgage broker Uno Home Loans, told The New Daily renters should be “super careful” if their name is listed on the lease or bills.

“Sometimes it’s just not doing your admin properly that causes these problems,” Mr Justice said.

This is especially true when moving house.

Mr Justice said renters often forget to remove their name from the lease and bills when they move, placing their credit rating at the mercy of their former housemates.

“All of a sudden those bills don’t get paid for six months,” he said.

“You need to be really organised and make sure if your name is on something that it gets paid.”

Although it might not undo the damage caused by a bad housemate, individuals can boost their chances of getting a better mortgage rate by ensuring their spending habits are stable and sustainable.

Mr Justice said anyone hoping to take out a home loan should ideally spend their money as though they’ve already got one, to demonstrate their financial management skills.

How to handle horrible housemates

Tenancy laws in Australia mainly focus on the relationship between landlords and tenants.

Unfortunately for people living with a freeloading flatmate, that reduces their legal options.

Tenants Union of NSW senior policy officer Leo Patterson Ross told The New Daily the best way to get bad tenants to pay their share of living costs is to discuss it with them.

“If you can talk it out, then that’s going to be the best option,” he said.

But sadly that might not be enough in some situations.

If the problem housemate still refuses to pay what they owe, it’s important to understand what kind of legal relationships everyone in the house has with one another.

In Australia, there are two main types of housemate relationship:

Co-tenant relationships, in which all parties have signed the lease; and

Head tenant/co-tenant relationships, where one tenant is on the lease and acts as landlord to the other housemates.

In a head tenant/co-tenant relationship, the head tenant has the right to evict sub-tenants who don’t pay their share, as they have many of the same powers the landlord has.

Although that may sound appealing, head tenants are also solely liable for paying the landlord and will be the ones on the hook if their housemates run off without paying.

Co-tenants don’t have the power to legally evict each other, and changing the locks while a bad housemate is out is illegal, Mr Patterson Ross added.

Co-tenants are also ‘jointly and severally liable’ for the rent – meaning everyone who signed the lease is fully liable for the rent and the landlord can chase any of the lessees for their money.

Ironically, landlords often chase the tenants who have paid their rent because it’s a “safe bet” they’ll have the money.

Renters can then take legal action against their co-tenants to get back their money. But as both tenants are private citizens with their own arrangement, this must be done through the local courts rather than a civil and administrative tribunal. ffffffff

‘Fear of missing out’ back for Sydney first-home buyers as prices rise

March 1, 2020

Kate Burke| Domain| 23 February 2020

https://www.domain.com.au/news/fear-of-missing-out-back-for-sydney-first-home-buyers-as-prices-rise-932720/

First-home buyers are pressing ahead with their dreams of home ownership, rushing to buy in inner and middle-ring suburbs as rapid price growth threatens to push them further out of reach.

The number of first-home buyers jumping into the market and how much they are prepared to borrow has soared in recent months, as Sydney prices continue to rebound.

“There’s definitely a fear of missing out,” said Tom Scarpignato of Belle Property Neutral Bay. “There are people who are feeling like they’ve missed the boat or are going to if they don’t purchase straight away. I don’t know where that’s come from.”

First-home buyer numbers in NSW are at their highest level since 2012, the latest lending figures from the Australian Bureau of Statistics show, while the average loan size in December was up more than 15 per cent year-on-year.

Stamp duty exemptions and concessions for first-home buyers – for properties up to $650,000 and $850,0000 respectively – were also up more than 25 per cent, state government figures show.

Sydney first-home buyers have also been quick to take up the federal First Home Loan Deposit Scheme that was launched this year, which enables them to purchase with as little as a 5 per cent deposit.

About 1100 first-home buyers, more than half of whom are above 30, intend to buy in Sydney – where just over one-third of homes sell under the $700,000 scheme cap, according to Domain analysis. Less than 3500 scheme spots remain, with an additional 10,000 to be released from July.

The lower north shore is one of the hardest areas for first-timers to break into and is among a dozen regions where 12 per cent or fewer properties sold under the cap, over the six months to December. Manly and its surrounding suburbs had the least opportunity – with 1.9 per cent of property sales below the cap – followed by the Baulkham Hills, Pittwater and Leichhardt regions.

But that’s not stopping first-home buyers getting into such markets, with 70 stamp duty exemptions and concessions granted for the lower north shore over the same period.

The majority, though, have to spend well over the caps, unless they want an unrenovated one-bedroom unit or studios, Mr Scarpignato says, with first-home buyers generally spending from $900,000 right up to $1.6 million, which would secure a two-bedroom apartment or a one-bedroom with parking.

“Even in some of the more expensive areas there are a decent share of units being sold under the cap, but of course that proportion is falling quite rapidly,” said Domain economist Trent Wiltshire.

Almost 30 per cent of apartments sold in inner Sydney were under the cap, as were about one-third of units in and around Marrickville and Botany and half of apartments in the Ryde region and Cronulla area.

However the pool of eligible properties across Sydney would shrink to about 27 per cent of homes if the current rate of price growth continued, Mr Wiltshire said. Add further competition from potential interest rate cuts and another 10,000 scheme spots, and first-home buyers are feeling the pressure to get in.

In the Ashfield area, where almost two-thirds of units are selling below the cap, Jackson Cox of Richard Matthews Real Estate is seeing huge first-home buyer demand, particularly for older units.

“I’m seeing more than double the first-home buyers … than what there was at the end of last year,” he said. “I think that there’s probably quite a bit of urgency.

“They’re really trying to target that $650,000 price point to avoid stamp duty, but will go up to $700,000 if they can,” he said, noting an auction for a two-bedroom unit last week drew four first-home buyers who pushed the price up to $699,000.

Tom Armstrong is among more than 6000 first-home buyers who have qualified for the government’s first-home buyer loan scheme. Photo: Peter Rae

Among them is Tom Armstrong, who has three months to buy with his scheme spot. While “super small” apartments in the city were not completely out of reach, he quickly decided to turn his search to Ashfield and Croydon in the inner west, then further afield to Parramatta to get a two-bedroom apartment.

“It’s been pretty full-on, a lot of [the properties] have line-ups at the door, especially the inner west ones,” the 30-year-old said. “I definitely want to get in as soon as possible while there is stuff I like, three months isn’t that long if you’re too picky.”

While most scheme spots nationally were being used to buy houses, Mr Armstrong said that was not viable in Sydney unless you moved really far out.

Mr Wiltshire said the government would likely need to revise price caps next year if it continued with the scheme, but noted this might only put further upward pressure on prices.

“Yes, it will help those people that get to use the scheme, get into the market earlier … but overall it’s not really helping housing affordability because it’s pushing prices up.”

Aris Dendrinos of Richardson & Wrench Hurlstone Park said two-bedroom apartments in the Marrickville area had pushed over the cap in recent months, leaving many first-home buyers disappointed.

“It’s very challenging now to be getting a two-bedroom apartment for that price, and that’s pretty confronting. I helped buyers get similar apartments for $610,000 six months ago,” he said.

Mr Dendrinos said he was increasingly seeing first-home buyers compromise on the size of the apartment they wanted, or looking to borrow more, because they didn’t want to change their location.

Value recovery driven by expensive houses

December 14, 2019

Annie Kane| Mortgage Business| 4 December 2019

https://www.mortgagebusiness.com.au/breaking-news/14062-value-recovery-driven-by-expensive-houses

As home values sharply recover in Sydney and Melbourne, there has been a particular spike in the recovery of the premium housing, according to new research.

According to the November Home Value Index, released by property analytics company CoreLogic, the value of properties sold across Australia in the month ending 30 November 2019, grew by 1.7 per cent – the largest national monthly gain since 2003.

While the report shows this uptick has been particularly driven by the Sydney and Melbourne markets, the report also reveals that the recovery has been particularly noticeable in the upper quartile of the market.

Building on a trend highlighted in October, it is the more expensive properties that are driving the value rebound.

Looking at the figures over the past three months, values across Sydney’s top quartile were up 7.4 per cent over the three months ending November, compared with a 3.8 per cent rise across the lower quartile.

Meanwhile, in Melbourne, top quartile values were up 8.1 per cent over the same three-month period compared with a 4.2 per cent rise across the lower quartile.

Brisbane, Perth and Darwin were also recording a similar trend where premium value properties were outperforming lower value properties in the three-month period.

While housing values are rising across each of the valuation cohorts, the recovery trend is most concentrated within the premium sector of the market, CoreLogic’s head of research, Tim Lawless, said.

“This trend is most evident in Sydney and Melbourne where the top quartile of the market is outperforming the broad ‘middle’ of the market and lower quartile,” he said.

“The stronger performance across the higher value end of the market can likely be attributed to a combination of values falling more in this sector during the downturn, as well as recent adjustments to serviceability rules which has boosted borrowing capacity.

“Additionally, the scarcity value of detached homes in many of the blue-chip property markets is another factor supporting strong capital gains.”

Mr Lawless concluded: “As housing values become less affordable in these high-end markets, demand is likely to ripple outwards to the more affordable areas.”

As previously reported, CoreLogic’s Home Value Index for the month ending 30 November showed a steep recovery in home values over the month.

Sydney dwellings saw monthly growth of 2.7 per cent – the largest month-on-month gain it has seen since 1988, while Melbourne properties saw their strongest growth since 2009 (2.2 per cent), taking it back to similar growth levels as the peak in 2012-17.

Mr Lawless told Mortgage Business: “This really highlights how fast this rebound has been in those two markets, and I think we will probably see growth continuing into early 2020 while supply levels remain very low, which is creating quite a bit of urgency in the market.”

Surging house prices, low rates risk tipping Sydney and Melbourne back into property frenzy: economists

December 14, 2019

Jim Malo| Domain| 5 December 2019

https://www.domain.com.au/news/surging-house-prices-low-rates-risk-tipping-sydney-and-melbourne-back-into-property-frenzy-economists-915499/

uyers are at risk of snapping back into boom-time behaviour across Sydney and Melbourne’s ascendant property markets, economists warn, with forecasters caught by surprise at the pace of the rebound.

Prices could be back to their peaks by early next year, recovering about two years of declines in less than 12 months.

Both cities recorded a jump in median house prices of about 5 per cent in the two quarters since the market turned in March, on Domain figures.

Their meteoric rise was aided by the re-election of the federal Coalition government, the Reserve Bank cutting rates to historic lows and the bank regulator easing credit standards.

St George chief economist Besa Deda the sharp upturn has come as interest rates are low and few homes are listed for sale.

“We expect prices to continue to increase over the year ahead given stock levels are quite low, and there is an appetite there given the low rates,” she said.

“Given the RBA has been cutting rates, and macroeconomic restrictions have been relaxed, we predicted an upturn.

“But it’s been stronger than most have predicted, even the central bank, particularly in Sydney and Melbourne.”

The recoveries in both cities were the fastest since records began and faster than economists predicted.

Clearance rates rocketed to and have held at about 70 per cent for both cities, which Domain economist Trent Wiltshire said correlates with about 10 per cent yearly price rises.

Monthly clearance rate, Sydney, November 2019

He said boom-time conditions – even higher clearance rates and frenzied auction bidding – weren’t back yet, but could be soon.

“The rebound has been much faster than expected, and it looks like we may see double-digit growth in 2020,” Mr Wiltshire said.

AMP Capital chief economist Shane Oliver agreed the bounce-back was stronger than he expected.

“If you look at the annualised gains in Sydney and Melbourne it’s about 20 per cent,” he said. “That’s very strong.”

Dr Oliver said buyer activity wasn’t quite yet back where it was in 2017 at the end of the last boom, and he felt it might level out given the weak economic backdrop of low growth, wages growth, retail sales and high labour underutilisation.

“I don’t think we’re back to the heady days of the property boom, but I think at some point it will settle down again,” he said.

2-12_Wimbledon_Ave_Elwood_8_qafirn — Auction clearance rates have been high in both Sydney and Melbourne. Photo: Stephen McKenzie

Dr Oliver said prices could run away again, given the property market appeared to be detached from the economy’s general health.

“It has that feel about it,” he said. “The pickup started mid-year, and it has been going for five months now – no doubt there’s an element of FOMO returning.

“I think that is causing that bounce-back to extend.”

Dr Oliver’s final position was the markets would settle down mid-2020.

NAB chief economist Alan Oster said he was worried buyers might revert to boom-time behaviour.

“I hope not,” he said when asked if the scenario was possible. “But prices in Sydney and Melbourne have come back [up] a lot.”

DSC_3609_owoanv — Buyers routinely fork out more than reserve to buy homes at auction. Photo: Peter Rae

Mr Oster said the market’s recent strength showed the significant role the lending restrictions implemented by the Australian Prudential Regulation Authority played in moderating prices.

“That feeds into the idea if there isn’t much of a restriction on these things then [prices] keep going up.”

Mr Oster said prices should ease some time next year, but agreed the fast upturn made him less confident.

“We’re not sure it will keep going. But we didn’t expect it to be this quick,” he said. “I think [buyers] are feeling scared these things will get away from us again.”

Ms Deda said challenging economic conditions should temper price growth, and hopes buyers are less likely to buy in a panic after the recent downturn.

“I still think the upswing will deepen, but we need to be aware those headwinds are there, and they might just affect the size of the upswing,” she said.

“There is some risk of that, but I hope the conversation of what’s been happening the housing market makes households more aware.”

Why you should try selling a home in a festively-named street at Christmas

December 14, 2019

Melissa Heagney| Domain| 4 December 2019

https://www.domain.com.au/news/why-you-should-try-selling-a-home-in-a-festively-named-street-at-christmas-914833/

People selling a house in a uniquely-named street name could add thousands of dollars to the sale price, new research shows.

Academics from Deakin University, National University Singapore and the Chinese University of Hong Kong found that Sydneysiders had a preference for longer, one-word street names in their recent study, Street Name Fluency and Housing Prices.

House buyers wanted unique street names, the research found, with houses in those streets reporting statistically higher sales prices – by 1.4 per cent or $9481.

Deakin University Associate Professor of property and real estate Adrian Lee said uniquely named streets were highly prized by property buyers.

“People want something different – names that are not commonly used in Australia,” Associate Professor Lee said.

“Royal names are sought after, so King George Street, not just regular George Street, or Prince William, not just regular William,” he said.

The study showed that besides royal names, words related to popular celebrities or trendy terms may be preferred in street names, with buyers attaching a premium for houses on those streets.

That included Brock Street, which was particularly of interest after the death of famous Australian race car driver Peter Brock.

While unique street names were attractive throughout the year, festively-named streets could appeal to people, particularly at Christmas time.

Across Victoria, land, houses and apartments were currently for sale in streets, including Noel Street, Wreath Drive and Angel Street.

Selling a property on a festively-named street could also work for people selling at Christmas time, Associate Professor Lee said.

US studies had shown that some people “projection buy” that is, they buy according to the season, which means the time of year can influence their buying habits.

“It may happen with Christmas. It’s possible they could buy a house in a street like that because it’s Christmas and then perhaps have buyer’s remorse afterwards,” he said with a laugh.

With only two major auction weekends left before Christmas, agents and vendors are hopeful for more sales.

Kay & Burton Armadale partner Michael Armstrong said while properties in the middle and lower price brackets had sold well throughout the second half of the year, more expensive properties had been quieter with fewer being put up for sale.

He expected that sales at all price brackets would be solid until the end of the year.

“I think there will still be a lot of people wanting to get in and buy a house,” Mr Armstrong said. “It seems like there’ll be successful sales right up until Christmas.”

Sydney and Melbourne Drive Property Price Rise of 2.4% In September Quarter – ABS

December 14, 2019

Martin North| Digital Finance Analytics|10 December 2019

Residential property prices rose 2.4 per cent in the September quarter 2019, the strongest quarterly growth since the December quarter 2016, according to figures released today by the Australian Bureau of Statistics (ABS).

Sydney and Melbourne residential property prices recorded strong growth in the September quarter 2019. Property prices rose in Sydney (+3.6 per cent), Melbourne (+3.6 per cent), Brisbane (+0.7 per cent) and Hobart (+1.3 per cent).

House prices rose 4.0 per cent in Sydney and 3.7 per cent in Melbourne while attached dwelling prices rose 2.8 per cent in Sydney and 3.6 per cent in Melbourne.

ABS Chief Economist Bruce Hockman said, “The increase in property prices is in line with housing market indicators, particularly in Sydney and Melbourne. New lending commitments to households, auction clearance rates and sales transactions all improved during the September quarter.”

Residential property prices fell 3.7 per cent in the year to the September quarter 2019, with all capital cities except Hobart recording falls. This is a noticeable improvement on the 7.4 per cent annual fall in the June quarter 2019.

The total value of Australia’s 10.4 million residential dwellings rose by $189.9 billion to $6,869.4 billion in the September quarter 2019. The mean price of residential dwellings in Australia is now $660,800.

Auction clearance rates

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