Home Buyers’ Decisions Not Heavily Impacted by Interest Rates – Report
Property prices listed as Australians’ main challenge in property buying decisions About 37% of homebuyers in Australia say interest rates did not influence their decision to buy or sell property, a new property research survey found. The preliminary findings from InfoTrack’s “2024 State of Real Estate Report” follow a recent decision from the Reserve Bank of Australia to leave the cash rate on hold at 4.35% for the sixth consecutive month. The report also found that 27% percent of the respondents listed property prices as a main challenge in their decisions to buy a property, while 20% cited market conditions. You may read the whole article here:https://bit.ly/4bw0M0f
Shocking Rate Changes Last Week: What You Need To Know!
In the latest round of home loan rate adjustments, the Bank of Sydney increased several owner-occupier and investor variable rates, while multiple lenders adjusted fixed rates, Canstar reported. According to Canstar, these changes reflect broader trends in the market and economic impacts from recent policy decisions. Here’s a closer look at the latest movements in home loan rates and what they mean for borrowers. Rate adjustments across lendersThe Bank of Sydney increased four owner-occupier and investor variable rates by an average of 0.08%. Additionally, three lenders increased 77 owner-occupier and investor fixed rates by an average of 0.20%, while Me Bank cut 10 fixed rates by an average of 0.07%. You may read the whole article here:https://shorturl.at/uLTal
Housing Market Sees Increase in Vacant Rentals: Report
Australia’s housing market saw an increase in the number of vacant rental properties in April, according to a report by PropTrack.In its Rental Vacancy Rates report for April 2024, it was found that the national vacancy rate increased by 0.09%, reaching a total of 1.21%. “While vacancy eased in April, conditions remain incredibly tough for renters, with just 1.21% of rental properties sitting vacant over the month. This is less than half the level that is considered a healthy rate of vacancy,” said Anne Flaherty, an economist at PropTrack. You may read the whole article here:https://bit.ly/3WOjhsj
More Help Needed for Housing-Goal – Ray White
The Australian government has launched the $11.3 billion Homes for Australia initiative to tackle housing challenges, but a Ray White economist believes more action is needed to meet the goal of building 1.2 million new homes. Homes for Australia: Major funding allocationsThe plan allocates $9.3bn over five years to tackle homelessness, enhance crisis support, and fund the construction and repair of social housing. An additional $1bn is earmarked for essential infrastructure like roads and sewers, which are crucial for new housing developments. Another $1bn will go towards crisis and transitional accommodation for women and children escaping domestic violence. “Fundamentally, the role of the federal government is to provide housing for our most vulnerable, and this is what the budget does,” said Nerida Conisbee, chief economist at Ray White. You may read the whole article here:https://shorturl.at/dqOR0
Australians Planning to Save Tax-Cut Earnings
More than a third of Australians are planning on using the income earned from the stage 3 tax cuts to pad their savings accounts, new data says. Major bank National Australia Bank (NAB) has released its NAB Australian Wellbeing Survey Q1 report, revealing that 36 per cent of Australians are planning on saving the extra income they will be earning from stage 3 tax cuts rather than spending. NAB surveyed more than 2,000 Australians in its NAB Australian Wellbeing Survey for the first quarter of the calendar year (ended 31 March) and found that 29 per cent of respondents believed that the tax cuts would support them with the increased cost of living. You may read the whole article here:https://bit.ly/4dC2izr
Multi-Billion-Dollar Housing Boost Announced
The Albanese Labor government has announced a multi-billion-dollar investment plan as part of next week’s Budget to accelerate its comprehensive Homes for Australia plan. The initiative aims to significantly increase the housing supply across the nation, with the Prime Minister highlighting the government’s commitment to keeping the Australian dream within reach. You may read the whole article here:https://bit.ly/4biDRoY
Home Loan Rates Trend Upward
Canstar has reported on the various movements in home loan rates among Australian lenders for the week of May 6 to 13. Great Southern Bank raised two owner-occupier and investor variable rates by an average of 0.05%. Across the industry, no variable rate reductions were reported. In terms of fixed rates, nine lenders increased a significant 183 owner-occupier and investor fixed rates by an average of 0.40%. Conversely, four lenders cut 64 owner-occupier and investor fixed rates by an average of 0.23%. You may read the whole article here:https://bit.ly/4aiFbqL
Tax Cut Windfall Boosts Savings
More than a third of Australians are preparing to boost their savings with the extra cash from the upcoming stage 3 tax cuts, indicating a strong preference for financial prudence in response to economic pressures, according to NAB. “Despite cost-of-living pressures, Australians have been prioritising their savings wherever possible over the last year or so,” said Paul Riley (pictured above), NAB personal banking executive. You may read the whole article here:https://bit.ly/4bBG66S
Australia Faces Housing Shortfall
Mike Zorbas, CEO of the Property Council, shared a dire prediction last week from the National Housing Supply and Affordability Council, indicating that by 2029, only 943,000 of the needed 1,200,000 homes will be built, pointing to a severe upcoming deficit in housing supply that threatens to intensify the affordability crisis. Proposed solutions for systemic improvement The council’s recent report, “State of the Housing System 2024”, outlined 10 areas to enhance the housing landscape. These include increasing social housing investments, enhancing rental market conditions for tenants, boosting construction sector capacity, enhancing the efficiency of land use and planning systems, increasing data availability, and tackling region-specific housing challenges. There are also improving housing outcomes for First Nations, assessing the appropriateness of the national housing target, and ensuring that Australia’s taxation system supports housing supply and affordability. “In the report’s own words, we need more housing of all types – social housing through to market homeownership,” Zorbas said in a media release. You may read the whole article:https://shorturl.at/bhyE1
Millennials Embrace Rentvesting Trend
Investors, particularly millennials, are increasingly embracing rentvesting – buying properties to rent out while continuing to rent themselves – fuelled by low vacancy rates and soaring rents in the property market, according to James Chase Buyer’s Advocacy. Millennials drive growth in rentvestingABS reported a significant 21.5% increase in the value of new investor loans this February compared to last year, with these loans accounting for more than half of the annual growth in new loans. Surprisingly, it is not older generations but millennials who are leading this investment surge, increasingly opting for rentvesting due to its flexibility and wealth-building potential. “We’re seeing a surge of millennial clients who are eager to enter the market through rentvesting,” said George Cherchian of James Chase Buyer’s Advocacy. “They do their research and they’re not afraid to make bold moves if the numbers add up.” You may read the whole article:https://shorturl.at/hkFIP
