Insights to the tastiest bits…
Inflation at Its Lowest at 4.3%: Impact on Mortgage Rates
January 2024
Good news! Australian inflation has come down from its peak from 8.4% a year ago to 4.3% as reported by the Australian Bureau of Statistics. But it remains above the RBA’s inflation target of 2–3%.
Despite these inflationary challenges, positive factors like strong population growth, private and public investments, and a substantial pipeline of projects are expected to bolster economic growth.
Many households are grappling with financial pressures stemming from elevated inflation and mortgage interest rates.
The Australian Financial Review survey indicates 31 out of 40 economists don’t expect the RBA to raise the cash rate in February. This is in contrast to a previous survey where 21 out of 42 economists predicted a rate rise in November, which did indeed occur.
If the RBA believes that inflation is likely to decrease as forecasted, there may be more good news in store, as the RBA may be less aggressive with interest rate increases and may decide to hold rates steady instead.
Good news! Australian inflation has come down from its peak from 8.4% a year ago to 4.3% as reported by the Australian Bureau of Statistics. But it remains above the RBA’s inflation target of 2–3%.
Despite these inflationary challenges, positive factors like strong population growth, private and public investments, and a substantial pipeline of projects are expected to bolster economic growth.
Many households are grappling with financial pressures stemming from elevated inflation and mortgage interest rates.
The Australian Financial Review survey indicates 31 out of 40 economists don’t expect the RBA to raise the cash rate in February. This is in contrast to a previous survey where 21 out of 42 economists predicted a rate rise in November, which did indeed occur.
If the RBA believes that inflation is likely to decrease as forecasted, there may be more good news in store, as the RBA may be less aggressive with interest rate increases and may decide to hold rates steady instead.
January 2024
Sydney Property Market Update
Sydney's housing market, we saw a 0.9% growth in July, with a quarterly rise of 4.5% hint at a potential recovery where prices are currently on a rise. Yet, on an annual scale, there's a 2.1% dip. Interestingly, we're still 7.2% below the record high from January 2022. Prices are still not at their peak, and there might be opportunities to buy properties at a value compared to the highs of January 2022.
Core Logic: August 2023
Sydney's housing market, we saw a 0.9% growth in July, with a quarterly rise of 4.5% hint at a potential recovery where prices are currently on a rise. Yet, on an annual scale, there's a 2.1% dip. Interestingly, we're still 7.2% below the record high from January 2022. Prices are still not at their peak, and there might be opportunities to buy properties at a value compared to the highs of January 2022.
Core Logic: August 2023
Quarterly Australian Property Pulse
House prices in Sydney increased by 0.9% in July. Over the past three months, Sydney experienced the highest growth at 4.5%, compared to Brisbane's 4.2%. Both Adelaide and Perth saw a 3.2% rise. Surprisingly, Melbourne lagged behind with only a 2% growth.
Aug 2023
Source: Core Logic
House prices in Sydney increased by 0.9% in July. Over the past three months, Sydney experienced the highest growth at 4.5%, compared to Brisbane's 4.2%. Both Adelaide and Perth saw a 3.2% rise. Surprisingly, Melbourne lagged behind with only a 2% growth.
Source: Core Logic Aug 2023
$4000 cash back when you refinance your home loan or investment home loan with a major bank
As living costs and interest rates continue to rise, it's crucial not to sit idle on your home loan payments. The interest on your home loan is one of your largest expenses.
For a limited time, there is $4000 cash back when you refinance your home loan or investment home loan with us. This move could be the solution to reducing your monthly outgoings and easing financial stress. Are you eligible? If you have a home loan of $250,000 or more, and an LVR of 80% or less, you could be! Please note that terms and conditions apply. Allow me to guide you through this process and together, we will review your home loan and devise a plan to minimise your expenses. * Eligible home loan of $250,000+ and up to 80% LVR. T&Cs apply.
To Refinance or not…
With multiple interest rate hikes and slowing market conditions, there's fierce competition amongst banks to attract new customers with aggressive new rates. These may compare well against what you’re currently paying.
Here’s how to quickly check if refinancing is worth all the hassle. Pick up the phone and call your bank to negotiate down your current rate - there’s a good chance they’ll entertain you.
Once you know what your bank can do, look into the various lenders out there to see what they’re offering. A shortcut is to give a good mortgage broker a call. Good mortgage brokers will work with many lenders and once we know your situation, we can give you an idea of whether another lender may give you a better rate while also suiting your goals. If we can’t do better, we’ll happily advise you to stay put.
An easy rule of thumb is that you’ll save $5000 per year on a loan of 1 million if your new rate is 0.5% better.
Refinancing is not just about getting a better rate.
You may wish to free up equity you’ve built in your own home or investment properties so that you can use the funds for other purposes such as renovations or to pay for a deposit for a new investment property, etc.
You might want to consolidate any unsecured debts such as personal loans, car loans and credit cards under your home loan. This means you will pay less because the rate for your home loan is better than the rate on the unsecured loans.
If you’re building a property portfolio, you may want to make sure your securities aren’t cross-collaterised. Depending on your strategy and situation, we can review this and advise you.