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Newsletter | Your Monthly Finance Tips

CoinsIn many states the weather has begun to turn, the autumn leaves are blazing away and we start to turn our focus indoors. With winter just around the corner, it’s the perfect time to plan renovations or consider moving somewhere warmer!

The Reserve Bank met in the first week of the month and official rates are currently sitting at 1.50 percent. Debt Markets anticipate rates will stay on hold over the next 12 months.

This newsletter checks the latest market update for capital cities around Australia, demonstrating that low mortgages aren’t the only thing driving value growth. I also take a look at the top 4 most popular regional towns in Australia to live in – are you dreaming of a sea/tree change?

There’s no need to spend hours researching which loan or lender is better – let me do the hard work for you!

Call me now on: 0402 408944


 

Market update: Hobart remains the exception to the rule when matching dwelling values to CPI. Coins 1

According to the latest Core Logic report, in inflation-adjusted terms home values are lower then they were at their peak in most Australian capital cities. The exception is Hobart, the only capital city in which real home values are still at their peak.

The consumer price index (CPI) shows inflation increased by 0.4% over the March 2018 quarter to be 1.9% higher year-on-year, slower than the Reserve Bank’s target range of 2% to 3% annually.

Inflation-adjusted dwelling values are expected to continue falling over the next quarters, which means as the cost of living and inflation rises, the relative cost of housing is set to reduce further. The figures also demonstrate low mortgage rates alone aren’t the only key driver of value growth.

A potential flow-on effect is that we'll start seeing less expenditure elsewhere in the economy, particularly in Sydney and Melbourne where retail demand has been strong due to the wealth effect of increasing home values.

Take a look at the figures – how does your city measure up?

• Sydney – values are 5.3% lower than their June 2017 peak.

• Melbourne – after peaking in December 2017, values are currently -0.9% lower.

• Brisbane – values peaked in March 2008 and are currently -12.5% lower.

• Adelaide – values now sit -7.4% below their June 2010 peak.

• Perth – values fell by -28.5% from their peak in December 2006.

• Hobart – with values increasing a further 10.9% over the past year, the only city where real dwelling values are currently at their peak.

• Darwin – real dwelling values peaked in March 2013 and have since fallen by -28.2%.

• Canberra – dwelling values are -6.8% lower than their June 2010 peak.

Is it time to move? Let’s sit down together and find the perfect mortgage for your individual circumstances.


Trend alert: Australians are moving to regional centres in droves.Home graph

Regional Australian towns have a lot to recommend them at the moment – close-knit communities, shorter commutes and greater affordability than you can find in our capital cities.

But the real winners in regional real estate are those towns that are experiencing economic growth and/or are within easy commuting distance of a capital city.

According to a recent realestate.com.au property report, here are the top 4 regional towns that are hitting the sweet spot for Australian buyers right now:

1. Ballarat, Victoria – Seeing the most significant jump in demand over the last year (up 62.1%), Ballarat is just a little over an hour's commute to Melbourne's CBD with median house prices ($329,000) half that of Melbourne. With larger houses and land, it’s likely first home buyers and young families are driving this demand.

2. Orange, New South Wales – Demand for country properties in Orange is surging ahead (up 40%). That’s a cool double of demand percentages in Sydney. Local jobs growth in health, education, tourism, agriculture and mining combined with far more affordable homes ($380,000 median house prices) makes the town particularly attractive.

3. Mackay, Queensland – An idyllic tropical location almost 1000km north of Brisbane, property prices in Mackay have risen 10% over the last 12 months with a median price of $330,000. Unemployment in the town is now at its lowest rate since 2014. It’s position as a gateway to the Great Barrier Reef and Whitsunday Islands means tourism is booming, pushing property demand numbers up 31.5%.

4. Launceston, Tasmania – While Hobart property prices have soared, her sister city looks set to follow suit. Prices have increased by 18.9% over the past 12 months and buyer demand is up an incredible 37.1%. Like Hobart, this is likely driven by low levels of new housing supply as well as jobs growth in the area.

Are you considering a sea/tree change? Let’s chat. I can help you find the right loan for your needs.