November has seen lots of really interesting data revealed - all of which impacts anyone looking to purchase, invest or refinance their home loan. I’ve summarised the most insightful data below and included some of my best tips.

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November Property Average Asking Prices Revealed

When commenting on the property industry, most people tend to focus on median house price data but a commonly overlooked set is the average asking price for a property.

This is an important metric to know because it gives you a real-world number you might pay for houses and units today. It also sheds light on the big price differences for houses and units throughout the country.

Interestingly, Sydney and Canberra have the biggest percentage gap for houses and units at 48%, whilst Hobart and Brisbane have the smallest gap at 37%.  

Return of the First Home Buyer

After years of struggling to get into the market, there’s a new report by QBE that’s reporting double-digit growth for loans to first home buyers throughout most of Australia.  

There’s a home loan feature that’s definitely helping first home buyers, and it’s having a guarantor!

What is a Guarantor?

If you have a family member with equity in a property, they can potentially help you get into the market sooner and save thousands of dollars.

How does it work? 

A guarantor loan allows you to borrow your deposit and purchase costs against the value of a family member’s property.

• You can borrow 100% of the purchase price, including purchase costs

• 80% is secured by your new property

• 20% plus purchase costs are secured by your guarantor’s property

The best part is that because the amount you’ve borrowed is less than the combined value of the two homes, you don’t have to pay expensive Lenders Mortgage Insurance (LMI).  

What Does Tightening Lending Criteria Mean?

The Australian Bureau of Statistics has reported an 18.6% drop in lending to Property Investors over the past year. One of the main drivers of this has been lenders, particularly banks, who say they’re ‘tightening their lending criteria’. This isn’t a phrase that the average Australian may necessarily understand.  

So, here’s what tightening lending criteria actually means:

• Banks are reducing the amount they lend to investors with multiple properties

• Banks are requiring higher deposits and lower Loan-To-Value ratios

• Banks are scrutinising the expenses of all applicants

However, it’s not all doom and gloom. Here are my top 3 tips for anyone looking to invest in property:

1. Get your expenses in order and reduce them as much as you can before your application

2. Be prepared to look at a lower priced property or in alternative areas

3. Do as much research as you can on existing rents and vacancy rates.

If you are thinking of buying soon, I can definitely help put you in a great position to purchase the right property, with the right loan, to can maximise your investment returns.

Thanks for reading my November newsletter. Don’t worry, I won’t be taking a break from my newsletter updates in December, so if you need any help with your finances, just let me know!