Things are likely to heat up over the next few months – good and bad heat depending upon your ability to react and take advantage of some of the opportunities.

And yes, there’s also plenty of interesting news at the moment. Here are some mortgage, property and car stories that are making headlines:

– Interest rate update.

– Loan demand declines.

– Rent freezes rejected.

– EV sales on the rise.

Read more below.

But first, we like to take you on a 10 minute detour to some things which might be also of interest to you….

Pssst….. Our car buying services ‘are now go’!

For me, looking for my next car is akin to going to the dentist – something I have to do but I’m really not looking forward to it. Particularly these days. New cars are hard to find and used cars are so expensive because new cars are just not available in the quantities we need. So new car scarcity = used car price hikes. Capitalism at work!

We can now offer you an interesting solution: when you have a particular car you want to purchase, let us know (be specific!) and we can use our data-scraping service to try and find your ideal vehicle no matter which showroom it is hiding in. We access all the websites in a single search engine. Truly remarkable!

Whether New or Used, we can find the car you love. And all with a negotiated deal which takes the tyre-kicking out of car buying. No more hassle, no more haggling. Just the best price. Delivered to your front door.

And, you will get the best loan for you, all approved BEFORE you go car shopping!

Find out how this works!

A Client’s Story

Dilemma

– A request for Cash out for business purposes was declined (pretty standard reason)

– The 3% buffer was added to existing loans so….

– The proposed loan would not service

Lender’s solution

– Cash Out for business purpose approved

– No buffer on existing loans

– Same day approval

– Digital docs issued same day for fast settlement

A Lender’s Gem

Development finance

– No pre-sales

– No income for servicing if the project is going to be sold

– Commercial and residential

– NCCP (consumer regulated loans) and non-NCCP deals

– Fund residual stock and vacant land

Regional Property Report Updates

For investors, this is a bonanza offering for 30+ regions around Australia. The level of detail and research is ‘second to none’ so delve into these reports before making your next property investment decision.

Tip #1: and if you don’t have a property investment advisor,

do yourself a HUGE favour and make sure you use one!

Some great property investment advisors

I have quite a few seasoned professionals who can assist you (including the authors of the Regional Property Reports), so I can certainly put you in contact with someone who can make your next buying decision a better one.

Tip #2: your biggest cost of your next property purchase

is the opportunity cost of choosing the wrong property

A 2% to 3% inferior annual return adds up to big $$$ over 5 to 10 years (Example: a 2% annual return difference (5% compared to 7%) on a $500K property purchase results in a capital gain difference of $63K over 5 years and $179K over 10 years).

The last 3 months Regional Property Report updates are set out below:

Click here for access to our Regional Reports

Our latest survey results are in!

Our question this month was: How often do you have a termite and pest inspection conducted for your properties?

Some observations:

– One in three homeowners play it safe and are not interested in playing Russian Roulette with the termite fraternity. I am one of them. After all, a home is a depreciating asset which will decrease even faster if it looks like swiss cheese (meanwhile, the land it sits on increases in value).

– Interestingly, this insurance policy approach (avoiding the risk of termites) comes at the princely cost of around $200 to $400 per inspection.

– I have to wonder if property pest inspectors need a business coach 🙂 After all, can you imagine leaving 56% of your potential clients without a reason to use you?

– If you live in cities like Melbourne (as I do), and you are ‘in the blue’ (aka the above colour blue), then YOU ARE A RISK TAKER! 🙂 Termites and pests have a Roladex of all the Melbourne suburbs where the pickings are good and they are on their way to munch through your home!

Connect me with a property inspector – 0411 190 474

Believe it or not!

The Reserve Bank of Australia (RBA) has unveiled that lenders have refrained from fully implementing the complete sequence of rate rises observed in the last year.

Throughout the span from May 2022 to June 2023, the RBA raised the cash rate from 0.10% to 4.10%, marking a substantial 4.00 percentage point escalation. Conversely, during this identical period, lenders raised their variable interest rates by an average of merely 3.37 percentage points. Interesting statistic…. But what is behind this?

The RBA said this was due to “the effect of discounting on variable-rate housing loans associated with strong competition between lenders”.

As these rate rises have been occurring over the past year, mortgage brokers have been helping Australians refinance at record levels. This has put pressure on banks to be restrained in how much they increase rates, because they know that if their rates are too high, brokers will recommend other lenders to their clients.

Additional thoughts: Lenders are making hay even at these reduced rates. Just witness the CBA’s record profit. So, when you are making higher than historical profits, you can do a couple of things; One strategy is to keep prices down (because you are already making good money) and try and grow your market share. I may be jumping at shadows but I reckon this explanation deserves some consideration as well.

Get in touch if you want to refinance!

Responding to the interest rate hikes of the past year, consumers are scaling down their borrowing endeavors.

Equifax, a credit bureau, has revealed that the demand for secured credit, encompassing mortgages and car loans, experienced a decline of 3.3% between the June quarters of 2022 and 2023.

Unsecured credit demand – which includes credit cards, personal loans and buy-now-pay-later services – fell 8.3%.

Equifax General Manager Advisory & Solutions Kevin James said the effect of multiple rate rises were becoming clearer.

“We are seeing accelerated growth in mortgages in early arrears, with a 33% uptick in mortgage accounts that are 30-89 days past due, compared to 22% last quarter,” he said.

Mr James also said the slowdown in demand for unsecured credit suggested consumers were spending less due to economic pressure.

“While demand for personal loans declined year-on-year, the average limit per account, and the average credit score of applicants, has increased. This could indicate that consumers who previously weren’t feeling financial strain have begun to consolidate their debts, so they can better manage their credit payments,” he said.

Rent control is no longer on the agenda, after it was dismissed by state and territory leaders at a National Cabinet meeting.

“We thank the nation’s first ministers for emphatically and unequivocally rejecting rent freezes and rent caps. This is the optimal outcome across the board for rental supply, rental affordability and – most importantly – tenants,” Real Estate Institute of Australia President Hayden Groves said.

Instead, the federal government introduced the Better Deal for Renters plan. This plan encompasses the establishment of a uniformly applied national policy that mandates valid and justifiable reasons for eviction. Additionally, the plan entails a progression towards capping rental hikes to an annual frequency and gradually implementing baseline rental standards.

This initiative builds upon the ongoing efforts of the Albanese government, exemplified by the Housing Australia Future Fund. This fund is allocated to support the construction of 30,000 fresh social and affordable rental residences within its initial five-year period.

“Adequate housing supply, based on the supply of adequately zoned and serviced brownfields and greenfields land, remains the most important factor in driving down buying and renting costs and prices across the market cycles,” Property Council Chief Executive Mike Zorbas said.

Electric vehicle sales have more than doubled over the past year, according to a new report from the Electric Vehicle Council.

In the first six months of this year, 8.4% of all new cars sold were electric vehicles (EVs), compared to 3.8% throughout 2022.

“While these most recent sales figures are encouraging, in order for Australia to achieve its climate targets, it is expected that more than 50% of all new cars sold in 2030 will need to be EVs,” the Electric Vehicle Council said.

“This means Australia will need to aim for around 1 million EVs on our roads by the end of 2027,” compared to the current estimate of 130,000.

“From reviewing global EV adoption rates for 2022 we can see that Australia continues to lag the global average, and is significantly behind many EU markets, the UK and China.”

Contact me if you’d like to buy an EV. I can help you finance the purchase.

If you are new to BIR Finance, we have a monthly newsletter on property and finance – with some insights not everyone gets to see.

One welcome piece of news from earlier this month was the Reserve Bank keeping the cash rate on hold. Finally (wait for it….), the mortgage belt can take a break from doing the heavy lifting to curb inflation.

But I had to laugh/cry when I read this quote from Deloitte Access Economics:

As Deloitte Access Economics has been warning for the past 12 months – and as the Reserve Bank’s own research shows – excessive inflation in Australia has mostly been caused by supply-side factors, meaning that interest rate increases have mostly been ineffective at bringing inflation under control.

Which has been my (often-expressed) view for many months. Oh well, Phil is gone but will Michele be any different? Meanwhile, those without a mortgage continue to sip voraciously on a champagne or two!

Back to script….

Here’s what else has made headlines in July:

– Key property price stat.

– Cash rate gets reformed.

– ATO issues a tax warning.

– HomeBuilder update.

Read more below.

But first for some of our regular updates….

Last week, a Big 4 BDM lender complimented me on my relevant posts on LinkedIn. To grow my head even larger, he said he shared them with his colleagues!!! Now I know he wants business from me but that glowing praise kept me basking in the sunshine on a cold and miserable Melbourne winter’s day – so it was all worth it! Thanks Anuj 🙂

Talking of Melbourne’s glorious weather, my wonderful VA in the Philippines, Anna, who gets these newsletters ready each month (thanks Anna!), said earlier this week, she was ‘feeling the cold’. I asked, ‘How cold is cold?’ She replied ’28 degrees’. I shivered.

Client Story

My clients have had some good wins over the past few weeks but one thing stands out: I would hate to be a client dealing directly with a lender!!!

We have spent a LOT of time providing documents to lenders which we had already provided to them. Luckily, we are patient and persistent (and always pleasant!).

Tip: the reduced buffer rate offered by some lenders is proving the difference between a successful refinance and a ‘Sorry, you don’t pass the servicing test for any lender’.

If you are looking at refinancing, give me a call or email me. Via Zoom, you will be able ‘to see what we see‘ – and in particular, which lenders will be likely to say ‘Yes’ to your refinance. And I can explain to you what is a ‘lender’s buffer rate’ 🙂

​​Time for a refi chat

Finance Tip

Yes we are a broker and we are here to get you money. That’s why you are talking to us, right?

But behind every request for money is often a much bigger goal which our clients want to achieve.

Yours could be:

– Having the security of knowing you have a place you can call ‘home’

– Growing your pool of assets so you can have a comfortable life in the future

– Saving money so you can afford your day-to-day essentials

So my question to you is:

Do you know what is your why and do you have a plan to achieve it?

Helping you sort out your why is not my thing but I know some good people who can point you in the right direction.

If you want a referral to one of my gurus, just let me know.

Your Guru hotline

Our survey results are in!

Our question was:

How important is a property inspection report when you are purchasing a property?

Some observations:

Ok, the bleeding obvious – where are the 3% (that thin red slice) when you are selling your property?

Bad joke but it had to come out.

The reality is that property inspections can save you heaps of $$$ by protecting you from buying the wrong property or not being aware of the costs to be incurred if you buy it.

A property inspector I know is also a registered builder. And HE says, property inspectors who are not qualified in the industry cannot know what they don’t know.

So, if I was you, I would DEFINITELY ask for the qualifications of your next building inspector – and those who are qualified builders have a running start. Plus if they are on the small/slim side and not afraid of heights or small spaces then even better, as it means they are able to get into those places the rest of us have no interest in.

Of course, if you are Melbourne-based and you would like to be introduced to some good inspectors, let me know. Happy to make the introduction.

Connect me with a property inspector – 0411 190 474

Regional Property Report Updates

For investors, this is a bonanza offering for 30+ regions around Australia. The level of detail and research is ‘second to none’ so delve into them before making your next property investment decision.

Tip #1: if you don’t have a property investment advisor, do yourself a HUGE favour and make sure you use one!

I have quite a few seasoned professionals who can assist you (including the authors of the Regional Property Reports), so I can certainly put you in contact with someone who can make your next buying decision a better one.

Tip #2: your biggest cost of your next property purchase is the opportunity cost of choosing the wrong property.

A 2% to 3% inferior annual return adds up to big $$$ over 5 to 10 years.

The last 3 months updates:

Click here for access to our Regional Reports

According to PropTrack’s recent research, property prices in Australia have shown robust growth over the years, with the most recent doubling of prices being of particular interest. In May, the median price for houses reached $730,000, while units were priced at $560,000.

Upon analyzing the data retrospectively, PropTrack discovered that house prices doubled over a period of 15.4 years, whereas unit prices took 17.8 years to double. This information highlights the steady and consistent appreciation of property values in the Australian real estate market.

Breaking it down by geography:

– House prices doubled in 14.3 years in the capital cities and 16.0 years in the regions.

– Unit prices doubled in 18.1 years in the capital cities and 17.5 years in the regions.

“Across every capital city and regional area, median house prices have doubled over a shorter period of time than median unit prices have. This highlights that houses tend to appreciate in price quicker than units,” PropTrack Director of Economic Research Cameron Kusher said.

“The lower price point and slower growth also highlights that housing more of Australia in units is a good way to address our housing affordability challenges.”

Get in touch if you need a home loan

The Reserve Bank of Australia (RBA) is set to implement several noteworthy changes in the upcoming months. Firstly, there will be a change in leadership, as the current governor, Philip Lowe, will step down in September and be succeeded by Michele Bullock, the current deputy governor.

Moreover, starting from 2024, the RBA will undergo significant reforms in the way it approaches and communicates monetary policy. Presently, the RBA holds 11 monetary policy meetings annually to review the cash rate. However, under the new approach, the board will convene eight times a year for these reviews.

These meetings will be extended in duration to allow for more comprehensive discussions. Following each meeting, the governor will hold a press conference to clarify the decision made regarding the cash rate. This new approach aims to enhance transparency and provide the public with a clearer understanding of the RBA’s monetary policy actions and reasoning.

“The less frequent and longer meetings will provide more time for the board to examine issues in detail and to have deeper discussions on monetary policy strategy, alternative policy options and risks, as well as on communication,” Governor Lowe said.

“And the post-meeting media conferences will provide a timely opportunity to explain the board’s decisions and to answer questions.”

The Australian Taxation Office (ATO) has issued a warning to taxpayers regarding their work-related claims in this year’s tax return. Assistant Commissioner Tim Loh emphasized that taxpayers should avoid simply copying and pasting last year’s claims, as doing so could raise suspicions.

Mr. Loh highlighted some changes to the rules around certain deductions that taxpayers need to be aware of:

Working-from-home expenses: If you intend to use the fixed-rate method, the rate has increased from 52 to 67 cents per hour worked from home. Additionally, there is no longer a requirement for a dedicated work-space.

Work-related car expenses: If you plan to use the cents-per-kilometre method, the rate has increased from 72 to 78 cents per kilometre.

Self-education expenses: The requirement to exclude the first $250 of certain self-education expenses has been removed.

To ensure accuracy and compliance, Mr. Loh advised taxpayers to seek assistance from a registered tax agent if they are uncertain about any aspects of their tax return. This way, they can avoid errors and submit a correct tax return from the outset.

Applicants for HomeBuilder, a government initiative aimed at supporting the construction industry, have been granted an extended deadline to submit their supporting documentation. Originally set for 30th April 2023, the new deadline now allows applicants until 30th June 2025 to submit the required paperwork.

The federal government had proposed this extension in March, seeking to provide more time for applicants to gather and submit their documentation properly. After some time, all states and territories, which manage HomeBuilder on behalf of the federal government, finally reached an agreement to approve the deadline extension.

This decision aims to facilitate a smoother application process for HomeBuilder and offer applicants the opportunity to meet the requirements without unnecessary rush or pressure.

“This will help thousands of existing applicants access grants of up to $25,000,” the government said.

“It gives all existing HomeBuilder applicants another two years to finalise construction and submit all required supporting documentation.”

“The extension is available for all applicants, including for those with contracts for off-the‑plan purchases, new builds and renovations.”

“Applicants do not need to do anything to access the extension – it will automatically apply.”

HomeBuilder applications closed in 2021, so the grant is no longer available to new applicants. This extension applies only to those who had already been approved, but were affected by supply constraints and construction industry delays.

If you like keeping up to date with what’s happening with property, finance, cars and the economy, you won’t want to miss this newsletter. Here are four big stories:

– Govt plans RBA cash rate reform.

– HomeBuilder deadline extended.

– Cars to become more efficient.

– Inflation continues falling

But first, our regular clockwork property updates!

There has been a whole lot going on – (and I won’t even go into my kids, school camps, cross country, and of course the onset of a chilly start to winter – I wish there was a ‘green’ log fire option).

Lender’s Carrots

A slightly unusual carrot – a survey from our friends at Banjo Loans. Banjo did a survey of small to medium businesses (SMEs) and came up with some interesting data and observations. Whilst particularly relevant for brokers and accountants, it also has some insights into how business owners are viewing the next year or so. Click the link below to obtain access to this report.

Your copy of Banjo Loans’ SME report

Client Story

An unusual one…..

A financial planner had a 70-year-old couple as clients. They had their funds tied up in a property investment fund and they needed cash to enable settlement for their retirement home. There are loan products for the ‘over 65’s’ such as reverse mortgages but in this case, these products could not be used.

However, there was a product which came to the rescue. It is basically an equity release product and is normally used for those who need cash prior to settlement from the sale of their home (i.e. asset rich cash poor). The beauty of this product is there is no repayments or interest payments to be made until settlement.

After discussions with the lender we ‘manufactured’ a solution for our clients using this product – resulting in a happy couple and a happy financial planner!

If you have an interesting loan scenario and require an innovative solution, reach out, and let’s chat.

Interesting Loan Scenarios – reach out!

Our survey results are in!

Our question was:

If you were to sell a property, would you use a vendor advocate?

Some observations:

– I suspect a lot of people have heard about Buyer Advocates and Investment Property Advisors but the purpose and use of Vendor Advocates is not as well known.

– Vendor Advocates help you choose the right real estate agent (REA) to sell your property. They are often remunerated via a commission split with the real estate agent selected.

– Their job is to make sure your selected REA does all the things they should be doing when selling your property. I am not sure about you, but when I have sold a property, I have basically let the sales agent do what they do and all I have done is get weekly reports and updates. I try to be useful but to be realistic, my knowledge is much less than the agent’s knowledge so I am often of not much value.

– A good Vendor Advocate can do a number of things: Apart from making sure you are selecting the right agent to sell your property, they earn their keep (and their reputation) by adding value to your sale and making sure your agent goes the full nine yards when selling your property.

– A good Vendors Advocate is well-versed in the real estate sales process so they know what questions to ask on your behalf and they know what is going on in the market from their regular discussions with agents in your area.

– But, like any service provider you always want a good one! I have a number of Vendor Advocates who I have spoken to and they want to make sure they are seen as adding value for their clients. After all, referrals from their happy clients is often their best form of marketing.

Find out more about Vendor Advocates

Regional Property Report Updates

For investors, this is a bonanza offering for those regions around Australia you are not familiar with. The level of detail and research is ‘second to none’ so delve into them before making your next property investment decision.

And, if you don’t have a property investment advisor, do yourself a HUGE favour and make sure you use one. I have quite a few seasoned professionals who can assist you (including the authors of the Regional Property Reports referred to above), so I can certainly put you in contact with someone who can make your next buying decision a better one.

And remember, your BIGGEST cost of your next property purchase is the opportunity cost of choosing the wrong property. A 2% to 3% inferior annual return adds up to big $$$ over 5 to 10 years.

You can access over 30 Regional Property Market analyses. Many of these Reports have over 50 pages of detailed information including whether to consider to Buy, Hold or Sell.

The regions cover all capital cities plus regional cities across Australia.

The last 3 months updated Reports:

Click here for access to our Regional Reports

Government plans to reform how RBA sets cash rate

Treasurer Jim Chalmers has accepted all 51 recommendations put forward by a federal government-commissioned review of the Reserve Bank of Australia (RBA).

As part of the proposed changes, legislation will be introduced by Dr. Chalmers to establish two separate boards—one for overseeing monetary policy, including the setting of the cash rate, and another for managing the Reserve Bank’s internal governance.

Furthermore, the RBA will be granted a new mandate that emphasizes the pursuit of “economic prosperity and welfare of the people of Australia now and in the future” as its overarching purpose, rather than treating it as a distinct objective solely for monetary policy.

Treasurer Chalmers emphasized the importance of having the most effective central bank and monetary policy framework to address current and future economic challenges.

He noted the positive reputation and high-quality staff of the RBA, acknowledging its past contributions to Australia’s economic outcomes. However, the review identified various opportunities for strengthening the country’s monetary policy framework over the last three decades.

HomeBuilder documentation extended to 2025

Under a new initiative from the federal government, applicants for the HomeBuilder incentive have been granted a two-year extension.

Initially, the deadline for applications was on 14 April 2021, with a subsequent deadline of 30 April 2023 for submitting supporting documentation. However, this deadline has now been further extended to 30 June 2025, but its applicability depends on the acceptance of this change by individual states or territories.

The purpose of this extension is to provide support to individuals who made financial commitments with the expectation of receiving the HomeBuilder grant but faced challenges due to supply constraints and delays in the construction industry.

“I thank states and territories for their feedback on the Government’s proposed extension and the updated data they have provided on outstanding, existing HomeBuilder applications,” Minister for Housing Julie Collins said.

Car manufacturers told to lift their game on fuel efficiency

In an effort to enhance fuel efficiency, the federal government has initiated the process by releasing a consultation paper and inviting public input.

Fuel efficiency standards necessitate that global vehicle manufacturers, as well as their local suppliers, progressively enhance the average fuel efficiency of new cars.

Minister for Transport Catherine King and Minister for Climate Change and Energy Chris Bowen noted that Australia is among the few developed nations that do not currently have fuel efficiency standards in place. Consequently, there is no obligation for global vehicle manufacturers to introduce their most advanced fuel-saving technologies to the Australian market, including high-efficiency internal combustion engine technology, hybrids, and electric vehicles (EVs).

“With a fuel efficiency standard in place, Australians can expect to continue to access the same types of vehicles they do currently, from hatches to 4-wheel drives, utes to vans and everything in between. But they will also get the choice of more efficient petrol and diesel engines, more hybrids, plug-in hybrids and battery EV options available for sale.”

Once the consultation period is over, the government will develop a model for a fuel efficiency standard and then introduce legislation to parliament.

Get in touch if you need a car loan

Inflation falls for third consecutive month

Consumers can find encouragement in the recent trends indicating a decline in inflation, suggesting that it may have reached its peak last year.

According to the Australian Bureau of Statistics, inflation reached a high of 8.4% in December. However, it subsequently decreased to 7.4% in January, further declining to 6.8% in February, and reaching 6.3% in March.

It is important to note that the mentioned inflation reading represents an average, implying that not every product or product category experienced a price increase of 6.3%.

Inflation ranged from 0.8% for transport to 9.5% for housing, while prices also rose 3.2% for clothing & footwear, 6.6% for insurance & financial services and 8.1% for food & non-alcoholic beverages.

The Reserve Bank has forecast that inflation will fall to 4% by the end of this year, 3.25% by the end of next year and 3% by the end of 2025.

Hi,

Next month’s news cycle is likely to be dominated by the upcoming federal budget. In the meantime, here are four important stories making headlines:

– Borrowers in refinancing mood

– ATO targeting property investors

– Property market rebounds

– Banks supporting green consumers.

Read more below.

But first, our regular updates!

This month’s

Lender’s Carrot – equity release loans

There is a novel equity release loan (i.e. cash out) when you are looking to sell but settlement hasn’t yet occurred.

It’s great for that quick pre-sale reno, the deposit for your next purchase, or even a holiday – you name it, you spend it!

All interest and principal is repaid when you settle on the sale of your home so no monthly cash costs. And, you have up to 6 months to settle.

Client Story – a business owner needs cash

The client’s business needed a short-term cash facility to urgently purchase stock which it could on-sell during the winter cold and flu season.

An unsecured loan was organised and funding provided within the week. 

To my client I said ‘Rather than focus on the rate, focus on the profit you will forgo if you don’t get the money.  As long as you make money after all costs, it is a good deal.’ (Of course, the more you make the better!).

Find out more!

Our survey results are in!

Our question was: For those borrowers who use a broker to get a loan, what is the BEST “other thing” your broker does for you?

Some observations:

– This range of services offered by brokers are not ones which you would anticipate a lender could, or would, offer their clients. 

A broker has a best interest duty to provide solutions for their clients which are not only of great value for the client but which are presented in a way which shows objectivity and transparency. 

Compared to a broker, however, a lender has a much lower level of compliance in terms of best interests duty. 

– So it is not surprising that brokers’ clients receive services which create enormous value and which lenders will not and cannot offer. 

This shows the strength of the broker channel and may well explain why over 70% of loan clients use a broker.

– The regular negotiation of rates is a key area of value for clients. 

As readers of my Blogs will know, I am fond of quoting the ACCC’s 2020 report on the mortgage industry which showed that the longer a loan was held by a client, the greater the difference between ‘best rates’ and the rate being paid; with the difference costing a client thousands of dollars a year.  See the graph below.

Regional Property Report Updates

You can access over 30 Regional Property Market analyses.  Many of these Reports have over 50 pages of detailed information including whether to consider to Buy, Hold or Sell.

The regions cover all capital cities plus regional cities across Australia.

The last 3 months updated Reports:

Click here for access to our Regional Reports!

Product Highlight

Suburb Comparison Report

The good folk at Pricefinder, the research house behind Domain.com.au (and which is used by many real estate agents), has given us access to use their Suburb Comparison Report.

The 15 year historical growth trends for up to 5 suburbs can be compared in a series of neat graphs.

This is great for when you are looking at suburbs which might have underperformed and you want to take advantage of any arbitrage in value. Or, just to have a sticky beak 😉

Of course, we go one step further!  For each suburb you choose, we also give you Pricefinder’s Suburb Flyover Report; a more detailed analysis for each suburb you have selected.

Click here for your Suburb Comparison Report!

Hordes of borrowers switching to lower-rate loans

According to the latest data from the Australian Bureau of Statistics (ABS), the 10 biggest months in refinancing history have been the 10 most recent ones.

This streak began in May 2022, when $17.1 billion of home loans were refinanced, and has persisted through February 2023, which is the most recent month for which data is available.

Borrowers set a new record in February by refinancing $19.9 billion. ABS spokesperson Dane Mead attributes this record to the Reserve Bank of Australia’s (RBA) series of cash rate increases. He notes that borrowers continued to switch lenders for lower interest rates as the RBA’s cash rate rose.

Since the RBA began increasing the cash rate in May 2022, it is not unexpected that a large number of people have refinanced their loans.

Currently, lenders are fiercely competing for business and offering attractive deals to refinancers such as rate discounts and cashback incentives.

Contact me today if you’d like to see how much you could save by refinancing.

Want to refinance? Let’s talk!

ATO chasing property investors for $1.3bn in missing taxes

According to The Guardian, to ensure that property investors are accurately filing their tax returns, the Australian Taxation Office (ATO) will require banks to provide data on 1.7 million property investors.

The ATO estimates that $1.3 billion in missing taxes could be collected through this effort.

All of the big four banks and 13 other financial institutions will be required to provide the requested information using formal information gathering powers.

The most common tax errors made by property investors include:

– misclassifying improvements as repairs instead of capital works,

– incorrectly apportioning mortgage interest costs after refinancing for private purposes, and

– failing to apportion expenses for private use of the property.

The ATO can use advanced data-matching technology to compare property investors’ financial transactions with what they report on their tax returns. 

The vast majority of property investors want to do the right thing, but taxes are complicated so mistakes can occur. To avoid mistakes, property investors are advised to seek professional tax advice. 

That’s why I recommend you get professional tax advice.

If you need a good accountant, feel free to contact me for a recommendation.

Why the property market has staged a rebound

After experiencing a decline in property prices across the country for about a year, there are signs that certain markets may have hit their lowest point.

In March, Australia’s median property price rose by 0.6%, marking the first monthly increase in 11 months, according to CoreLogic.

This was largely driven by median price growth in the four largest capital cities in Australia.

– Sydney – up 1.4% month-on-month.

– Melbourne – up 0.6%.

– Perth – up 0.5%.

– Brisbane – up 0.1%.

At the same time, prices declined in the other capitals:

– Adelaide – down 0.1%.

– Darwin – down 0.4%.

– Canberra – down 0.5%.

– Hobart – down 0.9%.

CoreLogic’s research director, Tim Lawless, said the housing turnaround was due to three main factors:

– Low supply of new listings, which were almost 20% below the five-year average in the combined capital cities.

– Increased demand from tenants, who were trying to escape the challenging rental market.

– Increased demand from migrants, with net overseas migration at record levels.

Big four banks and other lenders keen to finance ‘green’ purchases

Due to the growing demand for electric vehicles, solar panels, and other sustainable technology, several banks are now providing specialised “green” loans.

These loans typically come with more favourable borrowing terms and lower interest rates than traditional loans, as many lenders are eager to promote the shift towards a cleaner economy.

Depending on the lender, you can use green loans to finance the purchase of:

– Electric vehicles (EVs)

– EV charging stations

– Hybrid vehicles

– Solar panels

– Battery systems

– Solar hot water systems

– Heat pumps

– Energy-efficient appliances

As always, conditions apply, and different lenders have different credit policies.

Reach out if you would like to buy an EV, solar panels or other sustainable technology. I’ll be happy to explain your options and manage the loan application for you.

Reach out if you need a green loan!