Posts Tagged ‘FInance’

House Price Vs Wage Growth

There has been lots of discussion in the media about the disparity between the growth of house prices in a period of stagnated wage growth, and for good reason – there is a very real gap between the rise of each that can’t be ignored and will eventually drive change to both.

Comparing the wage price index with property values for the past two decades shows that nominal dwelling value growth … Read the full post »

Rule Changes to Ease Rising Household Debt

The Australian Prudential Regulation Authority (APRA) has increased the serviceability buffer in response to concerns around rising household debt levels throughout the nation; advising authorised lenders that when assessing a new borrower’s ability to service their loan payments to work on an interest rate at least 3% higher than the current product loan rate. The previous buffer in place was 2.5%.

APRA Chair Wayne Byres said that whilst they have strong … Read the full post »

Buying Your First Home: 6 Useful Tips

There can almost be nothing more exciting than purchasing your first property; but along with the adrenalin can also come some trepidation – it is a huge financial commitment, the biggest most people make in a lifetime.

Below we have outlined some useful tips to prepare yourself and as a consequence make the process less stressful and daunting, and much smoother.

Pre-Approval: Once you’ve made the decision to enter the market, … Read the full post »

Apps to Help you Save Money!

Saving for a house deposit is certainly not easy, particularly in an environment of rising property prices and low wage growth; budgeting is a ‘must’ and there are various ways of doing this from the old-fashioned writing down a checklist or setting up a spreadsheet…and now there are also a number of apps available to assist you to save.

Quite a lot have emerged in recent years, and each adopt a … Read the full post »

Long-Term Rates on the Rise

Although the official cash rate remains at historic lows, and the Reserve Bank is not expected to lift interest rates until 2024, some of the major banks have started to raise their long-term fixed-interest rates, with the Commonwealth Bank (CBA), being the latest.

Further hikes expected later this year suggest we could see a tide turning on Australia’s interest rates.  The cost of long-term money for the banks is rising meaning … Read the full post »

Buying Your First Investment Property

With interest rates remaining at historic lows and rental yields at historic highs, an increasing number of people are considering becoming ‘first time’ property investors.  With soaring house prices, many people have had a substantial equity-boost, simply by way of the market forces, and this increased equity can be borrowed against to invest in another home.  There is also a growing movement of non-homeowners choosing to invest and buy their … Read the full post »

The Federal Budget & The Property Market

Last Tuesday Federal Treasurer Josh Frydenberg delivered the annual budget; a big-spending, jobs-focused budget which contained help for single parents and first home buyers to enter the property market, partially by encouragement incentives for Australians nearing retirement to downsize their homes, in order to free up more housing for younger families and help more people into home ownership.

Those aged over 60 will be allowed to contribute up to $300,000 into … Read the full post »

First Home Buyers & Possible Lending Restrictions

According to leading industry experts, it will be first home buyers amongst the hardest hit if APRA (Australian Prudential Regulation Authority) responds to growing pressure to limit home lending, as fears are being raised about buyers extending themselves beyond reasonable limits in this environment of a booming market.

Throughout the nation, almost every market has experienced a significant spike in activity since the end of 2020, with home values rising at … Read the full post »

Possible Changes to Lending Laws

The federal government is currently weighing up proposed changes to responsible lending laws, that could see a relaxation in credit terms, as part of the recovery from the financial devastation of COVID19.

If the amendments are passed, loan approvals for investors should become more streamlined; making access to credit more effortless than it has been in the past; particularly after the tightening up post-GFC (Global Financial Crisis), and further down the … Read the full post »

FOMO – Fear of Missing Out

Many parts of the housing market are experiencing low levels of stock; hence the increased prices we have been experiencing, particularly in key lifestyle areas such as the Sunshine Coast.  So, whilst your own home’s value may be rising, so too is the likely value of any property you will purchase after you sell.

Eventually, more supply will come onto the market and the frenzy will abate somewhat; but until that … Read the full post »

Growing Wealth Through Property

The path to financial prosperity is not always straightforward, cheap, or easy; however, it is widely acknowledged and consistently proven over time, that one of the most solid ways to build wealth is through property acquisition.

Outlined below are a few key steps to consider when building a property portfolio:

Goal Setting:  this is a fundamental first step.  What do you want to achieve (for example early retirement)? What is your timeline? … Read the full post »

New Loan Commitments Continue to Grow

Despite the pandemic still hanging around creating intermittent havoc, the Australian property market remains resilient, continuing to break records and defying the logical premise of instability one would have predicted when the COVID lockdowns commenced in 2020.

The latest information from CoreLogic, sourced from the Australian Bureau of Statistics (ABS) – reveals the total value of new loan commitments for housing grew for the seventh consecutive month and shows no sign … Read the full post »

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