Easter is coming up fast and with it a third of 2017! And what an eventful year it’s turning out to be in the housing market. The Reserve Bank met in the first week of the month and official rates remain unchanged at a historical low of 1.5%. Experts predict that current rates are likely to hold through till mid 2018.

As investment interest rates begin a slow rise, investors are supposed to be feeling the squeeze with new APRA curbs – but the stats don’t add up – take a look in our first article and see whether you’ve still got time to diversify your portfolio. And, for the trend spotters, find out why the latest luxury homes are like Coco Chanel’s little black dress.

Investor interest rates are on the rise. It’s time to check whether you should lock in at a low rate or stick to your current mortgage. I can help – let’s have a quick chat now  

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Investor lending grows as values surge

Over the past year, interest rate cuts have spurred property investors to become a dominant force in Australia’s housing market. Yet while calls for banks to make investing in property harder emerge, the stats are showing a very different story.    

The Australian Bureau of Statistics (ABS) recently published housing finance data demonstrated that, over January 2017, property investors committed to a total of $13.8 billion in finance.  This is 4.2% rise over the month and a 27.5% increase year-on-year (the largest annual increase since August 2014).

The flow of investments also seems to be heading towards established rather than new homes – with $1.2 billion in commitments for new construction compared to $12.6 billion for established housing stock. The Reserve Bank’s (RBA) lending aggregate data delivers further insight into housing investor behaviour. In January 2017, investor credit expanded by 0.6% to be 6.6% higher over the year. The monthly change was actually the lowest it has been in four months while the annual change was the highest it has been in 10 months – showing the impact of the Australian Prudential Regulation Authority (APRAs) recent curbs to investor credit growth.

At the end of January 2017, the RBA also reported $572.2 billion in investor credit outstanding to Australian lenders, accounting for 34.9% of all housing credit outstanding ($1.637 trillion) and 21.5% of total outstanding credit. This represents a significant rise. The data is testament to the continued surge in property investors – a direct result of substantial value increases in Sydney and Melbourne housing. Meanwhile, the proportion of total housing finance commitments to owner-occupier first homebuyers is at an historic low.

Interest rates are beginning to rise, but there’s still time to take advantage of mortgage savings by locking in at a low investment rate. I can help you find a solution that meets your exact needs – give me a call!  

Wow-Factor: Is Luxury the new Black?

There’s a rise in adding luxury details to homes fit for a king or queen, but it’s not all about the bling. Just as the little black dress adds a classic yet subtle elegance to any ensemble, today’s luxury homes are as much about as what guests don’t see as what they do.    

The key to the wow-factor is having a place for everything and everything in its place – a motto that’s equally applicable to mud rooms (hide the kids’ dirty shoes and bags behind seamless panels) and butler’s pantry (hide the dirty dishes in your kitchen), to a snug room (hide yourself in a place where all your uncool bibs and bobs are displayed away from visitors critical eyes).

Dedicated theatre rooms are now a common feature of luxury homes – who wants to spoil the lines of your contemporary living room with a big old flat screen? Even the smallest room in the house is getting a makeover with built in seating for effortless manicures and pedicures. But perhaps one of the most laudable new luxury trends is a desire to get off grid with a range of smart and sustainable options. What people are really asking for is extra freedom – solar panels and battery storage prevent blackout downtime and let you charge up your new Tesla without breaking the bank.

So maybe its more appropriate to call luxury the new black… and green? Thinking about going green at home? Let’s have a chat about your options – there’s some great new mortgages available designed to help you make eco-renovations.