Finding tomorrow’s hot property, TODAY

Quote of the Week

“It would be the wrong thing to do – and I don’t think it would work. If borrowing is unsustainable we will be talking with APRA about prudential tools, but we are not going to use monetary policy to deal with rising house prices.”

Reserve Bank governor Philip Lowe, stating yet again that he won’t lift the official interest rate to slow down the property market.

Pandemic Blamed For Price Rises

Pandemic Blamed For Price RisesHouse prices have been “turbocharged” by the pandemic, according to KPMG, which claims prices are up to 12% higher than they would have been without the virus impact.

KPMG modelling projects that Sydney buyers will pay 26% more for a home by December 2023, double the increase if the pandemic hadn’t occurred. It predicts the average house will cost $1.24 million by 2023, compared to $1.19 million without the pandemic.

Canberra will experience a 23% rise in house values due to the pandemic, compared to just 14% in a no-pandemic scenario. Buyers in Brisbane will pay $660,000 as a result of the Covid premium, compared to $600,000 without the pandemic.

KPMG says Australian house prices are now 4% to 12% higher due to government responses to the pandemic including the HomeBuilder scheme. Initially, the uncertainty caused by the pandemic saw a fall in prices, but since then prices have been turbocharged by the pandemic.

RBA Repeats: No Rate Rise

RBA Repeats: No Rate RiseReserve Bank governor Philip Lowe has assured home buyers – yet again – that he will not lift interest rates to cool housing markets.

House prices have risen 15.6% nationally in the past year, says CoreLogic, with record levels of borrowing. But Lowe says there is a misconception the RBA will step in to subdue price rises by raising the official interest rate.

“It would be the wrong thing to do – and I don’t think it would work,” he says. “If borrowing is unsustainable, we will be talking to APRA about prudential tools, but we are not going to use monetary policy to deal with rising house prices.”

The RBA left the cash rate at a record low 0.1% at this month’s meeting and Lowe reiterated he does not expect a change until 2024. The bank wants inflation in the 2-3% target range before lifting the cash rate, which will require wage growth above 3% and a 4% jobless rate. Inflation is running at 1.1%, wage growth is 1.5% and the jobless rate is 5.1%.

Aust Growth Lags World’s Best

Aust Growth Lags World’s BestHouse price growth rates in Canberra, Hobart, Darwin and Adelaide are among the top third for cities across the world, according to a new report, but lag the world’s best.

The Global Residential Cities Index from Knight Frank has compared price growth in 150 cities in the March Quarter. On average, urban house prices rose 7.4% annually across the world, the highest since 2007, with 43 cities registering growth rates above 10%, led by two cities in Turkey – Izmir (34%) and Ankara (30%).

Wellington in New Zealand, Seoul in South Korea, Halifax in Canada, Moscow in Russia and Phoenix in the US also made the top 10 rankings for annual growth.

In Australia, Canberra had the highest annual growth of 15.7%, which bumped it up to 17th place in the index. Hobart’s growth rate of 13.8% placed it 23rd internationally. Darwin, with 10.8%, was in 41st place, while Adelaide was 44th, with its rate of 10%.

National Vacancy Hits 10yr Low

National Vacancy Hits 10yr LowThe national residential rental vacancy rate fell to 1.7% in June from 1.8% in May. SQM Research says this is the lowest vacancy rate nationally since May 2011.

Vacancy rates continue to fall for Sydney, Melbourne, Adelaide and Hobart. Five of the eight capital cities have vacancies below 1%, headed by Darwin and Hobart (both 0.4%).

Melbourne’s vacancy rate fell to 3.5% in June from 3.7% in May, while in Sydney vacancy rates dropped to 2.8% from 2.9%. Vacancy rates also fell further in the Sydney CBD (5.6%) and Melbourne CBD (5.8%), representing a return towards longer-term levels.

Brisbane’s vacancy rate has dropped from 2.4% a year ago to 1.3% now, while Darwin has fallen from 1.8% to 0.4% and Perth is down from 1.5% to 0.9%.

SQM Managing Director Louis Christopher says: “Rents are now accelerating in our larger capital cities which may have ramifications for the CPI read in the coming quarters.”

Canberra Leads City Rent Rises

Canberra Leads City Rent RisesCity rental markets continued their strong growth over the June Quarter. Domain data shows that, for the first time in 13 years, Sydney has fallen to third most expensive capital city to rent a house, despite a $10 rise to $550 per week.

Canberra is the most expensive: house rents in the country’s capital rose $30 over the June Quarter to a record $630 a week, $60 above the same time last year – the strongest annual growth since 2007.

Darwin is the second dearest city to rent, following a 21% annual rise in house rents, the steepest incline since 2013. House rents rose $43 over the quarter to $593 a week.

Meanwhile, for the first time on record, Melbourne is the most affordable city to rent a house with prices now on par with Adelaide. However, Adelaide has hit a six-year high following four consecutive quarters of rising rents, pushing house rents to a new record of $430 a week.

breaking-news
Find out how much your home is worth in today’s market. Get an instant market update, obligation-free. Gain insight into what your property is valued at, find out its potential rental yield and more.

Brisbane, Gold Coast, Sunshine Coast, Melbourne

Not all investment property tax depreciation schedules are built the same. They should be but the reality is, like many things in the property world, all is not as it seems. The devil is in the details—and the details are everywhere. But relax, at Washington Brown we take care of every last one.

Established in 1978, Washington Brown is one of Australia’s oldest and most respected quantity surveying organisations.

Each year, we prepare more than 13,500 reports, delivering $1.5 billion in depreciation savings.

At Triple Zero Property, we believe in delivering a seamless experience tailored to your needs. From personalised consultations and thorough research to ensuring transparent fixed-price building contracts and competitive pricing, we are committed to excellence at every stage. Our dedicated team oversees every aspect of your property build, from initial planning and throughout the construction process.

Discover how our comprehensive approach and commitment to client satisfaction sets us apart in in creating wealth through property in Australia.

Established in 2005, Reventon has built on a strong foundation in property investment and progressively expanded the business over the years. Today, they offer a complete range of property and financial services that includes, financial planning, accounting, mortgage broking, buyers advocacy and property management.

Reventon is a fully-integrated holistic wealth and financial planning provider founded by serial entrepreneur, international speaker, wealth specialist and company CEO Chris Christofi.

With Reventon, clients benefit from having all their needs met through a single relationship with a dedicated, experienced and trusted team. Our seamless service offers more convenience, greater control and ultimately a better client experience with better financial outcomes.

The propertybuyer team has been in business over 23 years and purchased over 4000 properties. Propertybuyer is a totally independent “Buyers’ Agency” focused on searching, negotiating and buying property in Australia for home buyers and investors. Our goal for each client is the “right property, at the right price, every time”.

We help you:

• Create a clear strategy and realistic “buyers brief”
• Provide access to “off market listings” – properties that are not advertised
• Provide research on the best suburbs with good prospects for capital growth and yield
• Save time – Typically we find the ideal property within 30 to 60 days of engagement
• Negotiate the lowest possible price (ie protect your clients from paying too much!)
• Give accurate appraisals and excellent local knowledge, Propertybuyer is currently the most awarded Buyers’ Agency in Australia, with 37 Awards for Excellence.

We never sell property so we are truly independent – we are not paid by selling agents or developers, so we never have a conflict of interest. This means we can devote ourselves wholly to looking after your best interests.

Plenitude Wealth is a holistic wealth management firm that is dedicated to making a positive change to the financial landscape of Australia and ultimately the world through creating an educational foundation of social awareness, enterprise and social consciousness.

We are passionate about all things property! This passion is about so much more than just property investments, numbers, and spreadsheets, it is about the relationships and genuine care we build with our clients.

We are exceptionally privileged when we are asked to assist our clients to help grow their investment property portfolios or even kick start their first purchase. Unlike most Buyers Agents, we are selective about our clients and do not try and do as many sales as possible – the emphasis is always on quality over quantity!

Our goal is not only to find the ultimate solution for them but to do so in a manner that ensures continued success by choosing locations primed for capital growth and the right cash flow for our client’s goals.

Optalife Wealth works with you to build financial security by providing clarity and confidence about your future. We work with you to build your financial plan, clearly defining what your future looks like and laying out clear and understandable steps for you to achieve.

There is no one size fits all here. We design your plan like a financial roadmap, tailored to your specific situation and what living your optimal life means to you. Like anything in life, having a clear plan increases the likelihood success and having a whole team working alongside you makes reaching your dreams one step closer.

Financebetter is here to guide you through the complexities of the financial world. Our experienced team of experts, including accountants, financial advisors, and investment analysts, is dedicated to delivering exceptional service and results.

Our comprehensive solutions and personalized guidance empower you to achieve your financial goals. Partner with us and experience the Financebetter advantage on your journey to success.

Bond Conveyancing is a licensed Law Firm designed to remove the stress out of buying or selling property in a simple, secure and affordable way. Bond Conveyancing is technology enabled but always people first.

Bond Conveyancing consists of an experienced team of conveyancers and lawyers qualified and skilled in property settlements and transfers. But they are not just about the property. Bond Conveyancing is people first, always. We understand that this is a big moment in your life and our timeliness and effectiveness in communicating with you comes second only to our diligence in ensuring your property settlement goes as smoothly as possible.

Our service puts a fully licenced Buyer’s Agent and Qualified Property Investment Adviser right at your side, to ensure that your interests are being protected at all times and your next investment property purchase achieves maximum success. Leverage off our extensive experience, professional know-how, and independent research to ensure that you’re accessing the best property opportunities available Australia-wide.Buying Properties in Sydney / Melbourne / Brisbane / Adelaide we operate on a client first approach, and will never sell you any property. We are 100% fee for service, providing independent & unbiased advice from qualified advisers and Buyer’s Agents. We set the standard in providing exclusive, one-on-one, independent, trusted and expert advice, tailored individually to suit your particular needs.

Subscribe to our newsletter today and receive a FREE copy of How To Identify Hotspots