With the ball now rolling on interest rate cuts, we very quickly turn to what's next.

Whilst a cut is very welcome, the consensus is we need to see a few more before the relief is truly felt. Whilst $80 a month per $500k of mortgage helps, $320 is meaningful. 

The property development market in Australia is a dynamic sector driven by various factors, with financing playing a crucial role in shaping opportunities and outcomes for developers.

At the end of the 2024 financial year, the national property market had increased about 8%, however it was a vastly different story across the major Australia geographies. The solid growth figure was in the face of challenging economic conditions, with the ongoing supply issue being the material driver.

With interest rates now on hold since November 2023, things are starting to heat up. Economists had pencilled the start of the rate decrease cycle for late 2024, however recent commentary suggests things could go either way, with talk of a drop, a hike or a hold fairly easy to come across.

Home equity is the difference between your home's market value and the remaining mortgage balance. It grows as property values increase or as you pay down your mortgage.

The latest NAB Monthly Business Survey for June 2024 provides a snapshot of diverse business conditions across Australia, reflecting a mixed landscape with varying levels of performance across different sectors.

The latest update from CoreLogic's Hedonic Home Value Index, released on July 1, 2024, provides a comprehensive view of the property market in New South Wales. Here are our key take-outs;

One of the most powerful tools I recommend to clients looking to optimise their mortgage repayments and savings is the offset account. This financial instrument not only helps reduce interest costs but also offers tax advantages when compared to alternative strategies like reducing loan balances or using high-interest cash accounts.

Most property owners will have recently heard the saying ‘fixed rate cliff’. In 2023 around 23% of all mortgage debt in Australia will come off record low fixed rates, with most of the hurt expected from April. The mortgage repayment increase coming is a really significant one.

The RBA has initiated its fiscal policy measures to control spiralling inflation by increasing the cash rate, the first of a number of expected interest rate increases ahead. Read here our top tips for getting prepped for rising rates.

Federal Budget 2022-2023: Property market key take outs

Treasurer Josh Frydenberg recently discussed the importance of the property market, and the government support schemes, to our economic recovery.

The Australian Prudential Prudential Regulation Authority announced on Wednesday October 6th that the affordability rate applied by banks when assessing credit will be increased. 

National housing growth slowed to 1.5% during August however remained broad-based across most of the country.

With the property market performing the way it has over the past 12 or so months, many homeowners find themselves in a much stronger equity position with options available for further investment.

The main thing your options swing on is a bank valuation of your property to determine how much equity is available to you. Note, whilst a Real Estates Agents appraisal is useful if you are thinking of selling, it will not be relied on by the bank who require a valuation report from a qualified valuer.

Being self employed can make getting a home loan more complex, but it doesn’t necessarily need to impact your chances. A bank will still use the same basics concept of analysing your income and your expenses, to determine if you have the cashflow to service your loan. Essentially all other things remain the same, such as the security and loan structure.

The NSW Government has released their latest update to the stamp duty reform proposal. As part of the update they articulate the key drivers of the reform as well as outlining proposed calculations.

There is more to selling your home than putting up a ‘For Sale’ sign on your front lawn. Here are the first things you should check off your list to help you get a favourable result from your investment and to ensure the process runs as smoothly as possible.

When taking out a mortgage, many people forget to consider the associated fees and expenses. Here are some of the extra costs that you’ll need to consider when you take out a home loan.

Whether these costs are payable depends on your lender, so you should always check or your broker will make you aware of these.

During May the property market behaved almost exactly as it has in recent months, with strong growth across all capital and regional areas in Australia. There was little indication of a large slowing in growth as some predicted.

Nationally the Corelogic Hedonic Home Value Index showed a 2.2% monthly gain, accelerating from the 1.8% for April.